On Monday, the Office of the Attorney General for the District of Columbia in D. C. filed a lawsuit against Grubhub, a food delivery service. The suit accused the company of deceptive trade practices against customers as well as taking advantage of restaurants in the locality.
The suit alleged that Grubhub failed to disclose that it was charging rates that were higher than the rates offered by the local restaurants. It also impersonated restaurants as it wanted to increase its business as well as advertised “free services” that weren’t actually free.
Karl Racine, who is the Attorney General of Washington D.C., tweeted that the AG’s office was “suing Grubhub for misleading District residents and taking advantage of local restaurants to boost its own profits.”
He added that the practice of “hidden fees” and other tactics such as “bait-and-switch” that were adopted during the pandemic had to be stopped.
The lawsuit by the AG’s office is looking at both a trial by jury, damages and restitution, payment of statutory civil penalties as well as well attorneys’ fees for the Office, according to reports by several outlets.
A spokesperson for Grubhub said that it had complied with D.C. laws and had discontinued some of the practices mentioned in the lawsuit. It also said that it had tried to engage with the DC Attorney General’s office. It said that it would fight the lawsuit.
The pandemic had a devastating effect on local businesses. Although delivery services provided a tremendous service bringing together businesses and customers, they also charged hidden fees and used other tactics to boost their performance.
That was the main reason why New York City enacted pandemic fee caps, according to a report in AP. Three of the largest food delivery apps–Grubhub, DoorDash and Uber Eats sued NYC. A spokesperson for the New York Law Department said that the city’s initiatives stood on strong legal grounds and would be defended in court, according to the outlet.
Image Twitter GrubHub