GrubHub has some serious lawsuit problems on their hands. But first what exactly is GrubHub? In a nutshell they help you find and order food from delivery and pickup restaurants if your located in Chicago, San Fran, Boston, New York, Philly, DC, LA, San Diego, Portland, Seattle or Denver. A user simply enters their location on the GrubHub.com website and then a list of delivery and pickup restaurants are displayed in that users area. Sounds like a pretty good service right? Wrong!
The GrubHub Hidden Charges Class Action Lawsuit contends the company is violating consumer-fraud statutes because some restaurants charge higher prices to customers without disclosing it to the customer.
This all came about one day when the lead plaintiff in the GrubHub class action lawsuit was charged an additional $1.00 more when a order was made for Fettuccine Alfredo from the Pompei restaurant through GrubHub on September 3rd, 2009. The Fettuccine Alfredo is listed as $8.95 on the Pompei menu, but GrubHub had the meal listed as $9.95 on its online menu! The problems is that GrubHub’s website said its service is free.
GrubHub features electronic menus that, in some cases, have higher prices than the prices listed in the respective restaurant’s ‘in-house’ menu. GrubHub denied the allegations and declined to comment. This news is really sad indeed, GrubHub was one of Chicago’s fastest growing online start up companies. Surly this lawsuit will stall their momentum at the very least.
The GrubHub class action lawsuit alleges consumer fraud, common law fraud, deceptive business practices, breach of contract, fraudulent inducement, and unjust enrichment. GrubHub mailing address is as follows: 2211 N Elston Suite 400Chicago, IL 60614. $30 million plus was raised from investors since November. It is not known exactly how many menus were misrepresented. Please check back for updates on the
GrubHub Hidden Charges Class Action Lawsuit.
