Sophia Serrao
Tue, 03/29/2022
DC Attorney General Karl Racine sued food delivery service Grubhub for charging hidden fees and using deceptive marketing tactics during the beginning of the Covid-19 pandemic. The complaint alleges that Grubhub’s misleading practices harmed DC residents who used its services, exploited local restaurants, and violated DC’s Consumer Protection Procedures Act. The lawsuit seeks to force Grubhub to be truthful about prices and fees, provide restitution to affected consumers, and pay penalties for violating DC law.
Many jurisdictions have tightened regulations on delivery services since the pandemic increased their demand. Attorney General Racine has worked to hold gig economy companies accountable for consumer protection laws and wage and hour laws. In 2019, the Attorney General sued DoorDash, another food delivery service, for its deceptive tipping practices. DoorDash used customer tips to pay delivery drivers’ base wages rather than giving the drivers their full tips. The Office of the Attorney General settled the case against DoorDash for $2.5 million in 2020 and recovered $1.5 million for the DoorDash drivers’ lost tips.
Such deceptive practices are grabbing the attention of regulators across the nation. Protections for consumers against deceptive practices are increasingly focusing on delivery services, and protections for the delivery workers are making their way through state legislation and the courts. For example, in 2021, New York City passed broad delivery worker protections and a 15% delivery cap fee. With the increased popularity of delivery apps and the increasing number of delivery workers, state and federal laws will continue to adapt to the new challenges and questions that arise.
For more information on common wage and hour violations, visit our resources page. If you believe your employer has failed to properly compensate you, contact us.
