FILE — Illinois Attorney General Kwame Raoul pauses during an interview with The Associated Press, Thursday, Nov. 21, 2024, in Philadelphia. (AP Photo/Matt Slocum, File)
(AP Photo/Matt Slocum, File)

SPRINGFIELD, Ill. — Grubhub Inc., an online food ordering and delivery platform, will pay $25 million to settle a dispute over alleged deceptive business practices with the Illinois attorney general and the Federal Trade Commission, officials said Tuesday.

Attorney General Kwame Raoul said he launched an investigation into the 20-year-old operation after receiving “dozens” of consumer complaints and engaged the FTC on the nationwide settlement.

“Grubhub tricked its customers, deceived its drivers and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub — all in order to drive scale and accelerate growth,” FTC chairperson Lina M. Khan said.

Chicago-based Grubhub, which allows consumers to order delivery from nearby restaurants via drivers contracted with the company, will pay $24.8 million in restitution, while $200,000 will fund the attorney general’s consumer education and enforcement operations.

Raoul and Khan said the investigation found that Grubhub engaged in illegal practices by misleading customers about the cost of delivery and the benefits of a Grubhub subscription, deceived drivers about the amount of money they could make, and listed restaurants on its app without their knowledge or consent — and in some cases over their objections.

In a statement, Grubhub denied wrongdoing. It said the company is committed to openness in its practices and said it cooperated with the FTC in its multiyear review.

“While we categorically deny the allegations made by the FTC, many of which are wrong, misleading or no longer applicable to our business, we believe settling this matter is in the best interest of Grubhub and allows us to move forward,” the statement said.

In addition to the settlement payment, Grubhub said it will make changes to its platform to make it easier for diners to understand fees and to better explain what delivery drivers could earn.

The settlement also requires Grubhub to immediately remove from its listing any unaffiliated restaurants, Raoul said.

The FTC said it doesn’t yet know how many consumers may benefit from the payout. After court approval of the agreement, the agency will put together a remediation plan.

(25News Now) – The minimum wage throughout Illinois will rise to $15 per hour on the first of the year.

This marks the seventh and final increase after legislation signed by Gov. JB Pritzker in 2019 that established a schedule of increases.

The minimum wage for tipped workers goes up to $9 per hour and workers under 18 working less than 650 hours per calendar year will see their hourly wage increase to $13 per hour.

“Since day one of my administration, I’ve made it my mission to build an economy that works for everyone and raising the minimum wage to $15 an hour fulfills that promise to our working families,” Pritzker said. “This increase honors the workers who power our state and ensures they can better support their families, bringing us closer to a stronger, more equitable economy for all.”

Minimum-wage workers are encouraged to review their paystubs in the new year to ensure they are being correctly paid.

Those with a minimum wage complaint can file with the Illinois Department of Labor by calling the Minimum Wage Toll Free Hotline at (800) 478-3998.Toll-Free

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