Chicago Files Lawsuit Against DoorDash and Grubhub
A lawsuit has been filed against DoorDash and Grubhub, alleging the the companies deceive customers and use unfair business practices.
The lawsuit was launched by the City of Chicago today. It accuses DoorDash and GrubHub of harming the city’s restaurants and their customers when delivery and takeout business became essential during the COVID-19 pandemic. It claims that both platforms use a “bait-and-switch” method to attract customers with low delivery fees, and then add on more charges when they are about to place their order.
In separate statements, both DoorDash and Grubhub called the lawsuits “baseless,” CNBC reports. On the other hand, Mayor Lori Lightfoot said that it is “deeply concerning and unfortunate that these companies broke the law during these incredibly difficult times, using unfair and deceptive tactics to take advantage of restaurants and consumers.” The lawsuits don’t specify a total monetary penalty they’re seeking. Instead, the City of Chicago is asking for a fine for each violation of the city’s code and an order that would stop them from violating it.
This is not the first time that delivery companies have been the target of legal authorities. San Francisco’s district attorney has accused delivery companies of violating California law by classifying drivers as contractors. Massachusetts filed a lawsuit last month accusing GrubHub of charging restaurants illegally high fees during the pandemic. DoorDash and Washington, D.C., reached a settlement two years ago over the platform misleading customers about how much drivers received in tips.