The district proceedings also accuse Grubhub of using the restaurant.
March 21, 2022 20:34
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The District of Columbia has sued Grubhub for misleading customers and accusing food delivery services of deceptive trading practices using local restaurants.
The lawsuit filed by the Attorney General’s Office in the District of Columbia of the Washington, DC High Court on Monday will not disclose if Grubhub charges a higher price than the restaurant, pretending to be a DC restaurant and gaining more business. Grubhub and the “free” service, which isn’t really free, Washington, DC, Attorney General Karl Racine tweeted Monday, claiming to have done “illegal tactics.”
In filing with the court, the district lists tactics that claim to have directly violated DC’s Consumer Protection Procedures Act. The proceedings also seemed to cover “specific charges” such as “service” and “small order” charges, as Grubhub posted the restaurant on its website and app, which Grubhub did not have a contractual relationship with at the time of posting. I’m hiding it. ” Court documents.
An illustration of a smartphone shows the Grubhub logo, a food ordering and delivery platform.
Racine tweeted on Monday that his office “is suing Grubhub to mislead the residents of the district and use local restaurants to increase their profits.”
“Grubhub charges hidden fees and uses bait-and-switch while pretending to help local businesses during a pandemic,” Racine said. “This should be stopped.”
The proceedings seek jury trials, damages and compensation, statutory civil penalties, and attorneys’ fees at the Justice Secretary’s office.
In a written statement to ABC News, a Grubhub spokesperson said the company “had a constructive dialogue with DC law firms to see if they understood our business and could improve. I tried to confirm it. “
“Our practices are always in compliance with DC law, and in any case, many of the practices in question have been discontinued, and we are disappointed that they have proceeded with this proceeding,” a spokesman said. Stated. “We look forward to actively defending our business in court and continuing to serve DC restaurants and diners.”
Grubhub food delivery personnel will board a scooter near Times Square in New York City on December 29, 2021.
Massachusetts also sued Grubhub in July, alleging that it charged restaurants high fees that violated the law limiting the amount that third-party delivery services could charge during a pandemic.
“I don’t think temporary price controls are legal or appropriate, but I adhered to them while they were in effect and for another month after they expired,” Grubhub said in a statement at the time. Said the claim as “unfounded.” “”
In September, Grubhub, three of the largest food delivery apps in the United States, including DoorDash and Uber Eats, sued New York City for a pandemic price cap, calling it a government overkill.
New York City has set a price cap, limiting the rates at which third-party platforms can charge restaurants 15% of online orders for delivery services and 5% of all other services, including marketing, in May 2020. did. The Pandemic, Associated Press reported.
According to AP, New York Legal Affairs Bureau spokesman Nicholas Paolucci said in response to the proceedings that the city’s initiative was legally sound and defended in court. The proceedings are ongoing.
Michelle Stoddard of ABC News contributed to this report.