PA AG, Grubhub Reach Settlement Over Pricing Transparency

HARRISBURG, PA — Grubhub will be more transparent about the prices on its app after an investigation by Pennsylvania Attorney General Josh Shapiro's office found consumers occasionally were charged higher amounts for items through Grubhub than if they ordered directly from the restaurant.

In a settlement agreement announced by Shapiro's office, Grubhub has agreed to make $125,000 in donations to various food banks in Pennsylvania as part of a settlement agreement.

“Online food delivery platforms can be very convenient, but consumers deserve transparency so they can make informed decisions about whether to place an order. I’m pleased that Grubhub agreed to make their pricing more straightforward,” Shapiro said in a statement. “This is another
step towards delivering a marketplace that is more fair for restaurants and consumers — and I call on all food-delivery platform companies to provide this same transparency as soon as possible.”

Last year, Shapiro and District of Columbia Attorney General Karl Racine reached an agreement with another online food delivery platform, Uber Eats, to secure better disclosures about the price discrepancy between in-app purchases and orders placed directly with restaurants.