FTC Sends 640,000 Grubhub Refunds. See Who Gets Paid

Your latest Grubhub delivery may not be coming with a side of fries. Instead, the Federal Trade Commission is serving up $23.8 million in payments to drivers and diners allegedly harmed by the company’s practices.

Regulators alleged in 2024 that Grubhub exaggerated how much drivers could earn while subjecting diners to deceptive and unlawful practices.

Grubhub settled the case without admitting or denying the allegations. As part of the settlement, the FTC is sending 640,038 checks or PayPal payments to affected drivers and diners.

“Online grocery fees that are unclear, inconsistently disclosed, or revealed only at the last moment … distort competition and harm consumers.” — Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection

Most recipients will receive a check in the mail so be sure to check your mailbox so you won’t miss out as paper checks must be cashed within 90 days. PayPal recipients have a tighter window as they must redeem their payments within 30 days.

But pay close attention as scams often pop up around settlements like these.

If someone claims to represent the FTC and asks for an upfront fee, Social Security number, or bank account number, steer clear as these are all signs of a scam as the FTC never requires people to pay money or provide sensitive account information to receive a payment.

What Was In The 2024 Accusation Against Grubhub?

In the December 2024 case, the FTC and the Illinois Attorney General alleged that Grubhub deceived drivers about how much they could earn working for the popular food delivery platform.

Grubhub also was accused of blocked diners from accessing their accounts and funds and listing restaurants on its platform without permission.

Under the settlement, Grubhub was ordered to make operational changes, including providing drivers with accurate info about their pay, providing users with a way to dispute blocked accounts, and listing only restaurants that consent to it.

Got a Grubhub Payment? Here’s Where to Get Help

Consumers with questions about their payments should contact the refund administrator, Analytics Consulting LLC, at 1-888-446-4992. The FTC also has a frequently asked questions page about the refund process.

Payments sent through FTC settlements include an explanation and details about the case.

Will You Owe Taxes on a Grubhub Refund?

Will the IRS take an interest in your FTC refund? Usually, recipients won’t receive a 1099 or other tax document.

If the payment must be reported to the IRS, however, the FTC will include a 1099 with the check. Recipients should report that payment as income and consult a tax advisor with any questions.

Grubhub Isn’t the FTC’s Only Delivery Case

The FTC is considering additional action to address unfair or deceptive fee practices in online food and grocery delivery, including whether a nationwide rule is needed.

Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said grocery fees can harm consumers and distort competition when they are confusing, inconsistently disclosed, or hidden until the final stages of a purchase.

“Clear and truthful pricing is essential to competitive markets,” Mufarrige said.

Instacart’s advertised “free delivery” wasn’t necessarily free, according to the FTC. The agency alleged that consumers encountered service fees at checkout on their first three orders and announced a $60 million settlement with the company in December 2025.

Government settlements may eventually return money to consumers, but customers usually have to take everyday order problems directly to the delivery platform.

FTC actions generated more than $435 million in refunds for consumers nationwide in 2025.