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GrubHub Hidden Charges Class Action Lawsuit
By Mike Holter
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A class action lawsuit filed in Cook County Court accuses GrubHub.com of defrauding customers by tacking on hidden charges for its services. The GrubHub class action says that even though the online restaurant delivery service claims its service is free, it overcharges its customers by jacking up its prices on its electronic menus.
GrubHub works like this: To place a delivery or pick-up order from GrubHub.com, consumers first select a restaurant from GrubHubโs website. When a restaurant is selected, the electronic version of the restaurantโs menu appears for consumers to browse and select their food order.
The GrubHub website states it is โ100% free to useโ because it doesnโt charge for delivery. However, the lead plaintiff in the GrubHub class action lawsuit noticed that he was charged $1.00 more when he placed an order for Fettuccine Alfredo from Pompei restaurant through GrubHub in September 2009. Pompei charges $8.95 for the dish, but GrubHub changed the price on its online menu to $9.95.
According to the GrubHub class action lawsuit, โin stark contrast to GrubHubโs advertisements, and in violation of the express terms and advertisements contained on www.grubhub.com, GrubHub features electronic menus that have higher prices than the prices listed in the respective restaurantโs โin-houseโ menu. In other words, consumers using GrubHubโs website are charged menu prices higher than the menu prices actually offered by the restaurant. Such artificially inflated prices cause GrubHubโs consumers to pay a higher cost per food item as compared to ordering the food items directly from the restaurant.โ
The GrubHub class action says these hidden, undisclosed charges are illegal in Illinois, where the lawsuit was filed. It alleges consumer fraud, deceptive business practices, fraudulent inducement, common law fraud, breach of contract and unjust enrichment. Itโs estimated that thousands of potential class members are eligible to join the suit.ย
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Updated May 24th, 2011
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3 thoughts onGrubHub Hidden Charges Class Action Lawsuit
Grubhub is going down! This is the LAST time they will overcharge menu prices and delivery and service fees and get away with it! Watch out GRUBHUB, we are coming for you!
I didnโt receive my order they promised me that they would give me a discount on it and never did ! Overcharged the tip and I donโt recommend that you use grubhub ( they put my order at a neighbor and they sent me a screen shot of were they placed it and my neighbors got a free meal which really is wrong!!!!
Iโm being overcharged for my dishes through grubhub. I took screenshots of the menus pricing. I contacted customer service today and got the generic (we will look into it and will not reach back out).