Grubhub, FTC Reach $25 Million Settlement in Junk Fees Suit (2)

Grubhub Inc. agreed to pay $25 million to settle claims it misled customers about delivery costs in violation of federal laws, according to the Federal Trade Commission.

“Rather than growing organically through honest tactics, Grubhub decided to take shortcuts and lure customers by deceiving them,” FTC Chair Lina Khan said at a news conference announcing the settlement Tuesday.

The FTC and Illinois filed a complaint against Grubhub Tuesday in the US District Court for the Northern District of Illinois. Grubhub, the FTC, and Illinois filed a joint settlement proposal the same day.

Illinois Attorney General Kwame Raoul said at the ...