Illinois-Based Grubhub Settles D.C. Suit

Signs for GrubHub and Seamless are displayed on the door to a New York restaurant, Friday, April 4, 2014. Shares in GrubHub will begin trading at the New York Stock Exchange Friday. GrubHub, based in Chicago, also owns the Seamless food ordering website. The company connects nearly 29,000 restaurants with users in more than 600 U.S. cities. More than 3 million people have placed an order through GrubHub websites in the past year. (AP Photo/Mark Lennihan)

Grubhub is agreeing to fork over three-and-a-half million dollars to settle a suit filed by the Washington, DC Attorney General’s Office. The Illinois-based food delivery service was taken to court by Attorney General Karl Racine for charging customers hidden fees and using deceptive marketing techniques to increase profits. Under the settlement, customers with an active Grubhub account will receive account credits. The remaining funds will be collected by the District as a civil penalty. In the suit, Racine said Grubhub violated the District’s consumer protection laws.