Grubhub was making misleading sites for restaurants it didn’t partner with. Freshcraft sued. Now, Grubhub settles a class-action lawsuit over non-partnered listings.
According to court records, Grubhub settles a class-action lawsuit brought by restaurant company CO Craft doing business as Freshcraft in May 2020. The food delivery platform produced “misleading sites” on its app and website for restaurants that don’t partner with Grubhub, causing customer confusion.
Grubhub Denied Lawsuit Claims, Chooses To Settle
Grubhub denied the claims and stated that it agreed to the settlement to prevent the difficulty and cost of a lawsuit. The platform indicated that it would not object to the plaintiff receiving a service award of up to $5,000.
Grubhub said it would make several changes to its website as part of the settlement. Including creating a self-help form or forms that would enable restaurants to take control, request updates to menus and hours listed on pages, and request removal from the platform.
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Grubhub Added 150,000 Restaurants
Grubhub was adding restaurants to its listings for over a year, even though it didn’t partner with them. It created a lot of problems for restaurants that don’t offer delivery. Customers would not have access to accurate menus and would complain about these restaurants. The restaurants weren’t aware the complaints were happening.
DoorDash and Postmates have been implementing this same strategy to grow their food delivery market share. Grubhub followed suit and last fall got suited by restaurants representing the 150,000 added without their permission.
