Chicago officials sue DoorDash, Grubhub, claim companies injured restaurants during COVID-19 pandemic | Chicago News

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(Photo by Logan Jeffrey on Unsplash)

DoorDash and Grubhub have harmed restaurants and misled diners during the COVID-19 pandemic that has decimated Chicago’s restaurant industry, Chicago officials said in a lawsuit filed Friday.

Hailed by Mayor Lori Lightfoots’ office as the first lawsuits to be filed against third-party delivery apps in the United States, the lawsuits mark a turnaround for Chicago officials who partnered with Grubhub in June to encourage Chicagoans to walk away. get vaccinated by offering $ 50 gift cards.

As we watched a global pandemic that closed businesses and drove people in, the defendants’ meal delivery service apps became a primary way for people to feed themselves and their families, as well as to support local restaurants, Mayor Lori Lightfoot said in a statement. It is deeply concerning and regrettable that these companies have broken the law in these incredibly difficult times, using unfair and deceptive tactics to take advantage of restaurants and consumers who were struggling to stay afloat.

When the pandemic began in March 2020, Lightfoot praised Grubhub for announcing that they would suspend $ 100 million in commission payments as restaurants close to stop the spread of COVID-19.

More recently, city officials announced in June that people vaccinated by the Chicago Department of Public Health would get $ 50 Grubhub gift cards. Dr Allison Arwady, the commissioner, said in a statement that we are grateful to Grubhub for their donation.

In that same statement, Grubhub CEO Adam DeWitt said Chicago is our hometown and we are proud to partner with the city to help end COVID-19.

The lawsuit calls on a judge to force businesses to be more transparent, change tactics and compensate restaurants and consumers injured by these predatory tactics, as well as civil penalties for violations of the law, according to the mayor’s office .

Read the full complaint against Door Dash.

Read the full complaint against Grubhub.

Spokesmen for both companies told WTTW News that the city’s lawsuits were without merit.

This lawsuit is without merit, said Taylor Bennett, spokesperson for DoorDash. This is a waste of taxpayer resources, and the people of Chicago should be outraged. This lawsuit will cost taxpayers and bring nothing.

Grubhub officials said the city’s lawsuit was motivated by a desire for publicity.

We are deeply disappointed with Mayor Lightfoots’ decision to bring this unfounded lawsuit, spokesperson Grant Klinzman said. Every claim is categorically wrong and we will aggressively defend our business practices. We look forward to responding in court and are confident that we will prevail.

The lawsuit accuses both DoorDash and Grubhub of advertising restaurant delivery services without their consent, damaging restaurants’ reputations and forcing them to scramble to resolve complaints.

Further, the complaint alleges that the companies lured consumers into a bait and switch with deceptively low upfront delivery charges, only to charge a deceptive fee at the end of the transaction. This inflated the final bill up to six times more than the amount advertised, city officials said.

The companies also concealed that their prices were significantly higher than the prices available if they ordered directly from the restaurant, according to the lawsuit.

The lawsuit also accused Grubhub of violating a city order requiring them to cap their fees at 15% until December 8, or 180 days after the last of the city’s COVID-19 restrictions were lifted.

In addition, Grubhub launched deceptive promotional campaigns to save restaurants during the pandemic, while forcing participating restaurants to extend their contracts, cover the cost of promotions and pay Grubhub its full commission on all orders, according to one. press release from the mayor’s office. .

The lawsuit accuses DoorDash of misleading consumers into believing they were tipping drivers directly, but using that money to subsidize the company’s payment to its drivers.

Additionally, DoorDash imposed a deceptive Chicago fee of $ 1.50 on every order in the city, which deceptively implies that the fee was demanded by or paid for in Chicago when in fact DoorDash was the sole beneficiary, according to the mayor’s office.

More than 15 months ago, members of Chicago’s city council held a hearing that detailed numerous complaints about third-party delivery apps similar to those included in the lawsuit filed on Friday.

The 15% cap on fees charged by businesses was imposed by city council in November and lapsed in April before being reimposed in June.

Chicago restaurants or consumers who want to share their experiences with meal delivery companies with city officials can email[email protected].

Contact Heather Cherone: @HeatherCherone | (773) 569-1863 |[email protected]

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