The city of Washington, D.C., filed a suit against food delivery company Grubhub, alleging the company deceived customers through a promotion at the apex of the COVID-19 pandemic.
Grubhub deceived its customers by concealing additional fees and not disclosing the fact that its prices could be higher than that of the restaurant it was delivering food from, according to the suit.
“We are seeking to force Grubhub to end its unlawful practices and be transparent so D.C. residents can make informed decisions about where to order food and how to support local businesses,” D.C. Attorney General Karl Racine said.
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Grubhub responded to the legal action by stating it follows the laws of the nation’s capital and has discontinued several of the practices cited in the suit, according to a report.
The company stated it has worked with the office of the D.C. attorney general and was “disappointed” by the lawsuit.
“We will aggressively defend our business in court and look forward to continuing to serve D.C. restaurants and diners,” Grubhub said.
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Notably, this is not the first time the company has been sued, the report details.
Grubhub announced it will make changes to its model, including listing charge and service fees to the checkout process, the report noted.
