Grubhub is a real, operating food-delivery platform — and a completed FTC matter with money already returned. Grubhub settled the FTC and Illinois case for $25 million; in August 2026 the FTC sent more than $23.8 million to 640,038 drivers and diners.

What did the FTC allege Grubhub did?

The FTC and Illinois alleged Grubhub hid true delivery costs behind junk fees — a “pricing shell game” — sold “free” delivery that wasn't, blocked accounts holding gift-card balances, advertised driver earnings almost no driver reached, and listed as many as 325,000 restaurants without permission. Grubhub settled.

How do Grubhub settlement refunds arrive?

FTC payments arrive by check or PayPal automatically — in August 2026 more than $23.8 million went to 640,038 people. The Commission never requires people to pay money or provide account information to get a payment; any “refund” contact that reaches you first is the impostor script.

Scam verdict · Educational pattern check

Scam Detective research desk · Updated October 2026

Real platform — $25M settlement, refunds sent

Is Grubhub Legit? The App Delivers — So Did the FTC Case Over Its “Pricing Shell Game”

Grubhub is a real, operating food-delivery platform — and a completed FTC matter with money already returned. The FTC and the Illinois Attorney General charged that it hid true delivery costs behind junk fees (a tactic a former executive called a “pricing shell game”), sold “free” delivery that wasn't, blocked diners' accounts holding gift-card balances, advertised driver earnings almost no driver reached, and listed as many as 325,000 restaurants without permission. Grubhub settled for $25 million; in August 2026 the FTC sent more than $23.8 million to 640,038 drivers and diners. Order with eyes open: read the fee stack before you tap, and never let a “free delivery” banner do your math.

Educational verdict from documented scam patterns — not a live report. For a 0–100 risk score on the exact link in your hand, run the checker.

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Straight from the source

The verdict stands on the public record — the line below is quoted verbatim from the source named under it.

“Our investigation found that Grubhub tricked its customers, deceived its drivers, and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub—all in order to drive scale and accelerate growth.”

— FTC Chair Lina M. Khan, Dec. 17, 2024.

Why this question never goes away

The food arrives; the question is what the checkout and the ads did on the way. The complaint alleged the advertised delivery price often doubled once “service” and “small order” fees landed — fees the company's own documents described as delivery fees in disguise; that Grubhub+ sold “$0 delivery” while charging for delivery and walling off cancellation; that diners holding large gift-card balances found accounts blocked without warning or appeal — 97% of locked accounts stayed locked in one cited month; that driver ads promised up to $40 an hour in New York where the median was about $10 and one in 1,000 drivers hit the rate; and that up to 325,000 restaurants — more than half the platform — were listed without consent. The settlement: a $140 million judgment partially suspended to $25 million paid, true-cost fee disclosure, account-unblocking rights, simple cancellation, consent-only listings, and substantiated earnings claims. Then the second stage: in August 2026, $23.8 million went out to 640,038 people.

Five red flags — any one is enough

A checkout total that grows past the advertised delivery price — the FTC's named junk-fee pattern; the order now requires the true cost up front.

“Free” or “$0” delivery claims on a paid subscription — the complaint's own count; read the per-order fees anyway.

An hourly-pay promise in a driver recruitment ad — the FTC alleged advertised rates almost no driver reached; the median is the honest number.

A gift-card balance you can't reach — blocked-account abuse is in the settled record; the order requires notice and an appeal path.

Any “Grubhub refund” or “support” contact that reaches you first — refund-impostor scripts ride every settlement; the FTC never asks for money or account information to send a payment.

Your next three moves

Review the full fee stack in the real app you open yourself before ordering — and your statements for Grubhub+ renewals.

Never act on a “refund” call, text, or email; FTC payments arrive by check or PayPal automatically.

Junk fees and dark patterns go to reportfraud.ftc.gov and your state AG — check any “refund” link with the $2 instant check.

Sixty seconds of checking beats a four-figure mistake.

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