FTC Begins Distributing $23.8M in Grubhub Settlement Refunds

The Federal Trade Commission and the Illinois Attorney General have finalized a $25 million settlement with food delivery platform Grubhub, resolving allegations of widespread deceptive business practices that harmed consumers, delivery drivers, and restaurants. The agreement, which includes significant operational reforms, marks one of the most substantial enforcement actions against a gig economy company to date.

Under the terms of the settlement, Grubhub will pay $25 million, with the majority of the funds directed toward consumer refunds. The FTC announced on August 12, 2026, that it has begun distributing more than $23.8 million to approximately 640,038 affected individuals. Most recipients will receive a check in the mail, while some will be compensated via PayPal. The median payment amount is $51. The FTC has advised recipients to cash checks within 90 days and redeem PayPal payments within 30 days.

The enforcement action, first detailed in a complaint filed in 2024, accused Grubhub of a broad pattern of misconduct. Regulators alleged the company engaged in deceptive advertising by promoting low-cost or free delivery while hiding additional fees until the final checkout...