Grubhub Overcharged MA Restaurants During Pandemic: Judge

BOSTON, MA — A Massachusetts Superior Court ruled that the Grubhub food delivery platform overcharged customers after a lawsuit claimed Grubhub charged fees in excess of 18 percent of the order’s menu price during the pandemic, the court announced Thursday in a news release.

The attorney general's lawsuit alleged that Grubhub violated a statutory fee cap in place during the COVID-19 public health emergency, which prohibited Grubhub and other third-party delivery service platforms from charging fees to restaurants that exceed 15 percent of an order’s menu price. The lawsuit alleged Grubhub charged fees in excess of 18 percent of the order’s menu price, officials said.

The fee cap came into effect on January 14, 2021 and remained in place until June 15, 2021, when former Governor Baker lifted the state of emergency in Massachusetts.

The attorney general's office originally sued Grubhub in July 2021 for violating the law and the state’s consumer protection act, seeking refunds for restaurants that were harmed by Grubhub’s alleged unlawful practices, according to officials.

“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,” Attorney General Andrea Joy Campbell wrote. “We look forward to continuing with our case to hold the company accountable and refund restaurants for the fees they were illegally charged.”

Grubhub opposed the lawsuit, arguing that it had not violated the Emergency Law and, that if it had violated the law, the law was unconstitutional.

Grubhub is a delivery service platform through which customers order restaurant food for delivery or pickup. Restaurants contract with Grubhub to use its services, which include advertising the restaurant’s menu, accepting and processing orders and payments, transmitting orders to the restaurant and delivering orders to customers.

The office's lawsuit against Grubhub is ongoing.