Washington, D.C. (CNN Business)
The Washington, D.C. attorney general stated on Monday that he is suing Grubhub. Alleging that the firm injured consumers during the pandemic by imposing hidden fees. It misled consumers about them using so-called “dark patterns,” among other things.
DC sues Grubhub for allegedly employing deceptive practices. The food-delivery business, which rose to popularity during the epidemic. As in-person dining gave way to takeout and delivery orders. Responded on Monday, saying it supports DC restaurants and has worked with Racine’s office. It over the last year to resolve its concerns.
A Grubhub source told CNN, “We are unhappy they have went through with this case. Because our processes have always conformed with DC law.” “Many of the acts in question have been phased out. We will act to protect our business in court and look forward to serving DC eateries and diners in the future.”
Attorney General Karl Racine filed a complaint in DC Superior Court. On Monday, alleging that Grubhub has broken the Town’s consumer protection laws and is not thorough about the fees. It charges users, claiming that the company does not notably display additional service fees like it does delivery fees.
According to Racine’s lawsuit, Grubhub’s advertising misleads customers by portraying free online ordering and delivery. As a universal feature when only a small percentage of customers are qualified.
The DC government also claims that Grubhub harmed restaurant owners with a pandemic-related promotion that allegedly “passed. Most of the costs of the discounts along to the already-struggling restaurants” while still requiring restaurants. Full commission on orders placed under the promotion.
Grubhub allegedly took a number of deceptive actions to drive traffic to its platform. Including listing restaurants on its site. Without their consent, creating non-official phone numbers for restaurants in order to generate more Grubhub orders, and creating non-official websites for restaurants that directed visitors to Grubhub.
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