What Happened
The Federal Trade Commission says it is sending more than $23.8 million in payments to 640,038 Grubhub drivers and diners. The money comes from the agency's case over claims that Grubhub misled drivers about potential earnings and engaged in other deceptive conduct affecting customers.
The FTC's refund page says eligible drivers and diners do not need to file a claim. Payments are being sent by check or PayPal, with the amount depending on the records in the case. The important part is that the food-delivery platform's final course is now a federal refund check.
The Dumb Part
Food delivery already involves three parties, four fees, a service charge, a delivery fee, a small order fee and the creeping suspicion that the restaurant received none of the money. Now the FTC has added a fourth participant: the accountant distributing reparations.
There is a certain elegance to a delivery app promising one thing, delivering another, and then having the government deliver cash to the people who were there for the original delivery.
The Bottom Line
The refund does not mean every driver or diner was harmed in the same way, and it does not erase the underlying allegations. It does mean the FTC says the case produced money for hundreds of thousands of people. Somewhere, a driver is finally getting paid for a trip that did not involve a hidden fee.
Sources
FTC: $23.8 million payment announcement