Grubhub's Transparency Test

More than 600,000 delivery drivers and customers across the country will soon receive payments under a settlement agreement over deceptive business practices alleged against Chicago-based delivery giant Grubhub. The state of Illinois worked with the Federal Trade Commission to obtain the settlement, which will see payments totaling almost $24 million. This is a result of an investigation that started after receiving consumer complaints about the delivery company.

The Illinois Attorney General's office alleged that Grubhub misled consumers about the cost of food delivery and misled drivers about how much money they could make on the platform. Grubhub has denied these allegations but agreed to pay the settlement and make changes to its business practices. The company will now only list restaurants on its platform with their consent and "honestly" advertise driver pay.

Grubhub was founded in Chicago in 2004 and has been at the center of controversy over its business practices. The company's commitment to transparency is now being put to the test as it moves forward with the changes required by the settlement. Consumers who have questions about their payments can call the settlement administrator or refer to FAQs on the FTC's website.

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