Grubhub FTC settlement payments go to more than 640,000 recipients

Grubhub FTC settlement payments are now being sent to 640,038 affected consumers, the Federal Trade Commission said Aug. 12. More than $23.8 million is being distributed to drivers and diners, offering a concrete outcome from the regulator's case over the food-delivery company's advertising and platform practices.

For recipients, the practical details matter: most payments will arrive as checks by mail, while others will be delivered through PayPal. The FTC said checks must be cashed within 90 days, and PayPal payments must be redeemed within 30 days.

How do Grubhub FTC settlement payments work?

The payments are FTC redress, meaning money returned to people the agency identified as affected by conduct in its case. The agency said drivers harmed by Grubhub's alleged earnings claims and diners harmed by its alleged misleading and unlawful conduct are receiving the funds. The announcement does not say that every Grubhub customer or delivery driver is eligible, and it does not provide individual payment amounts.

• Recipients: 640,038 affected consumers, according to the FTC.

• Total distributed: More than $23.8 million.

• Delivery: Mostly mailed checks, with some PayPal payments.

• Deadlines: Cash checks within 90 days; redeem PayPal payments within 30 days.

• Help: Contact the refund administrator, Analytics Consulting LLC, at 1-888-446-4992.

The FTC also warned recipients that it does not require anyone to pay money or provide account information to receive a payment. That is a useful guardrail for people who receive an unexpected message about a refund: the agency's stated process is a mailed check or PayPal payment, not a request for a fee or banking details.

What was Grubhub accused of doing?

The distributions stem from a December 2024 action brought by the FTC and the Illinois attorney general. The agencies alleged that Grubhub overstated what delivery drivers could earn, blocked diners from their accounts and funds, and listed restaurants on the platform without permission.

The complaint also alleged that Grubhub had listed as many as 325,000 restaurants that were not affiliated with the company, making the platform appear larger. According to TechCrunch, the complaint alleged Grubhub sometimes tried to encourage restaurants that asked to be removed to enter paid partnerships.

Under the settlement terms described by the FTC, Grubhub was ordered to advertise driver pay honestly, give users a way to dispute account blocks that restrict access to their accounts or funds, and obtain restaurants' consent before listing them.

The FTC distribution is separate from a California driver class-action settlement that TechCrunch reported received final approval in July. The available information does not establish payment timing or terms for that separate case.

This story draws on original reporting from TechCrunch.