The city of Chicago is taking action against DoorDash and Grubhub in new lawsuits, claiming that the companies engaged in many unfair practices.
The separate suits accuse the food delivery services of hurting restaurants during the thick of the COVID-19 pandemic. The companies are accused of charging misleading fees to their customers and falsely advertising their services for eateries that were not using Grubhub or DoorDash. Chicago is also accusing the companies of hiding additional costs that were added to customers’ orders. In the Grubhub suit, the city says they even made imposter websites that mimicked restaurants to deceive consumers.
Grubhub’s lawsuit in Chicago is the company’s second in less than a month. Attorney General Maura Healey of Massachusetts launched a complaint in July, alleging that the corporation had exceeded a local 15% fee cap on restaurants. Similarly, DoorDash is accused of avoiding Chicago’s 15% cap by charging a $1.50 “Chicago Fee” that misled users to believe that the city was charging them a separate charge to use the service.
Among the grievances in DoorDash’s lawsuit was its tipping policy, which used “tips” to pay drivers their wages when they actually should have been bonuses on top of their regular earnings.
Chicago Mayor Lori Lightfoot called the illicit practices of the companies “deeply concerning and unfortunate.” She slammed Grubhub and DoorDash for taking advantage of both restaurants and users of the service during a time when the pandemic left most “struggling to stay afloat.” Lightfoot filed the complaint with Acting Business Affairs and Consumer Protection (BACP) Commissioner Kenneth Meyer and corporation counsel Celia Meza.
Grubhub and DoorDash have both denied the allegations in the lawsuits.
