Grubhub Overcharged Mass Restaurants During COVID, AG Rules

Massachusetts restaurants may get a refund from the food delivery service that illegally overcharged eateries to operate on its platform, the Suffolk Superior Court said.

Two takeout containers.
Photo Credit: *Unsplash / Anna Hill*

Morgan Gonzales

03/21/2023 2:09 p.m.

Grubhub, headquartered in Chicago, Illinois, ignored legislature created during the COVID-19 public health emergency and overcharged restaurants to facilitate delivery and pickup orders, Attorney General Andrea Joy Campbell ruled on Thursday, March 16.

Social distancing was a priority during the peak of the COVID-19 pandemic, so the state ruled that food delivery platforms like Grubhub could not charge restaurants fees of more than 15% of an order's menu price.

Grubhub, which has partnered with over 8,000 restaurants in Massachusetts, ignored the ruling and charged fees over 18% of an order's menu price, the attorney general's ruling said.

The attorney general's office originally sued GrubHub in July 2021 in an attempt to get refunds for restaurants that suffered from Grubhub's illegal practices. The ruling is a step forward to getting those refunds.

“I am proud of the team and this thoughtful ruling which found that Grubhub illegally overcharged Massachusetts’ restaurants as they struggled to stay afloat during the pandemic,” said Campbell.

The lawsuit against GrubHub is active and ongoing.

Assistant Attorney General Michael Sugar and Legal Analyst Maggie Wallace are handling the Grubhub matter.

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