FTC Distributes $23.8 Million in Grubhub Settlement Refunds

The Federal Trade Commission began distributing $23.8 million in refunds on August 12, 2026, to 640,038 Grubhub customers and drivers. The payments, which average $51 per person, are being issued via mailed checks and PayPal through the administrator Analytics Consulting LLC. As of August 11, 96% of these payments have been sent.

The refunds result from a settlement following a December 2024 lawsuit filed by the FTC and the Illinois Attorney General. Regulators accused Grubhub of deceptive practices, including charging hidden junk fees, misleading drivers about potential earnings, and listing up to 325,000 restaurants without their consent. The complaint also alleged the company blocked user accounts with large gift card balances and hindered subscription cancellations.

While Grubhub categorically denies the allegations, the company agreed to a $140 million judgment to resolve the matter. Due to the company's financial condition, the FTC suspended the majority of that amount, requiring an immediate payment of $25 million. As part of the settlement, Grubhub must implement operational reforms, including clearer pricing disclosures, easier subscription cancellations for Grubhub+, and a requirement to substantiate driver earnings claims with reliable evidence.