The state of Massachusetts and Grubhub have reached a settlement in the state attorney general’s 2021 lawsuit against the third-party delivery company for repeatedly violating the Massachusetts pandemic-era delivery fee caps. In March 2023, Suffolk Superior Court ruled in favor of Massachusetts, alleging that Grubhub had violated the state’s 15% fee cap, in effect from Jan. 2021 until June 2021.
Grubhub agreed to pay $3.5 million to affected restaurants and $125,000 to the state for allegedly charging restaurants 18% or more in delivery fees when the state limited delivery fees to 15% until the state of emergency was lifted.
“Grubhub unlawfully overcharged and took advantage of restaurants during a public health emergency that devastated much of this industry,” Massachusetts state attorney general Andrea Campbell said in a statement.
