A Suffolk County Superior Court judge has ruled that Grubhub broke the law by overcharging Massachusetts restaurants during the COVID-19 pandemic. The lawsuit was initiated in 2021 by the Attorney Genera’s Office.
An AG press release touting the legal win states that
[the] online food delivery service platform Grubhub Holdings Inc. illegally overcharged fees to Massachusetts restaurants in violation of the statutory fee cap in place during the COVID-19 public health emergency. The AG’s Office had originally sued Grubhub in July 2021 for violating the law and the state’s consumer protection act, seeking refunds for restaurants that were harmed by Grubhub’s alleged unlawful practices.
According to the AG’s complaint, Grubhub violated Sessions Law Act 2020 Chapter 358 which prohibited third-party delivery services from charging fees that exceeded 15% of a restaurant’s menu price. The fees charged by Grubhud during the pandemic exceeded 18% of menu prices, according to the AG’s lawsuit.
To read the court’s decision in its entirety, click here.