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Chicago Files Suit Against Grubhub and DoorDash, Seeks Restitution for Restaurants and Consumers
Alleging deceptive and unfair business practices, the City of Chicago has filed two lawsuits against meal delivery giants Grubhub and DoorDash. Reportedly they’re the first comprehensive law enforcement actions against meal delivery companies in the U.S. Separately, both companies called the charges “baseless.”
The lawsuits assert claims under the Chicago Municipal Code for engaging in practices that harm restaurants and mislead consumers. They seek injunctive relief in the form of greater transparency and other key conduct modifications, restitution for restaurants and consumers, and civil penalties for violations of the law.
“As we stared down a global pandemic that shuttered businesses and drove people indoors, the defendants’ meal delivery service apps became a primary way for people to feed themselves and their families, as well as support local restaurants,” said Mayor Lori Lightfoot. “It is deeply concerning and unfortunate that these companies broke the law during these incredibly difficult times.”
- ◦Policy/Gov't
