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Grubhub overcharged restaurants in COVID-19, state lawsuit said

According to a lawsuit by Massachusetts Attorney General Maura Healey, Grubhub has overcharged restaurants for delivery services as it struggles to survive the business environment barren by COVID-19. I am.

The Attorney General’s office has accused Grubhub of violating temporary Massachusetts law that limits the amount of fees a third-party delivery service can charge a restaurant for 15% of the price of an online order. State legislators have passed a 15% cap to ease the restaurant struggle during the coronavirus pandemic.

Grubhub continued to overcharge restaurants, according to a proceeding filed Thursday, while UberEats and DoorDash adjusted local rates to comply with the law.

“Grubhub has 15% of the order price, plus payment collection, fraud monitoring, [and] “As a result, Grubhub has charged the target establishments for more than 18% of the purchase price of the order, in violation of the shipping charges cap law,” the proceedings said.


The restaurant is having a hard time getting through the pandemic

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Billing these extra charges has financially damaged the restaurant and in some cases raised the cost of “thousands of dollars,” the proceedings said.

“At the heart of everything we do”

“Serving restaurants is central to everything we do,” Grubhub said in a statement, adding that he strongly opposed the Massachusetts prosecutor’s allegations.

“I don’t think temporary price controls are legal or appropriate, but I’ll adhere to them while they’re in effect, and for another month after they expire, to local restaurants throughout Massachusetts. It effectively communicated millions of dollars, “the company said.

The 15% method started in January and ended in mid-June. Healy said in a statement Thursday that Grubhub has repeatedly violated the law since its enactment. Healy said he sent two letters to Grubhub in February and May. I asked the company to stop violating the law, but it didn’t help.

Grubhub, along with Uber Eats and DoorDash, is one of the three companies that dominate the US food delivery scene.

Uber Eats Last year it was reported that negotiations were underway to acquire Grubhub However, Uber officials did not close the deal. Instead, the Dutch company Just Eat Takeaway has acquired Grubhub for $ 7.3 billion. Uber Eats has acquired Postmates for $ 2.6 billion.

Healy and state prosecutors are asking a Boston judge to force Grubhub to pay a $ 5,000 fine for every 15% law violation. The proceedings did not reveal the number of alleged violations. The prosecution said the money would be returned to the restaurant if allowed.

“We are urging Grubhub to take responsibility for the illegal activity by regaining money at these facilities,” Healy said in a statement. They need to recover. “

Grubhub overcharged restaurants in COVID-19, state lawsuit said

Source link Grubhub overcharged restaurants in COVID-19, state lawsuit said

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