GrubHub Breached the “Unlimited Free Delivery” Promise, a Class Action Suit Alleges
GrubHub reportedly misled California residents into a monthly subscription with “free delivery,” then surprised them with an unexpected $2.50 price for each order starting in December, according to a class action lawsuit.
Plaintiff Jesse Stout, a California resident, is seeking to represent other GrubHub+ members in the class action case that was transferred to federal court in California on Tuesday.
The lawsuit claims that GrubHub promised him and other customers “unlimited free delivery” on purchases over $12 in exchange for a $9.99 monthly subscription. However, in December 2020, the company began charging customers a “CA Driver Benefits Fee.”
According to Stout, GrubHub attributes the increased price to California’s Proposition 22.
Proposition 22 was a November 2020 ballot initiative that passed. GrubHub spent a significant amount of money lobbying for the proposition, which would exempt it from a California legislation, AB 5, that would have obliged the company to consider its drivers as employees rather than independent contractors, as per the class action lawsuit.
In addition, Stout stated that if Assembly Bill 5 had been enacted, all GrubHub drivers would have been promised a variety of significant benefits under state law. These may include overtime, health care, paid sick leave, bargaining rights, and unemployment insurance, among others.
According to the class action lawsuit, Proposition 22 got approved, but GrubHub refuses to pay the new law’s associated fees. Aside from that, the company is allegedly attempting to pass along these costs to customers through the addition of the California Driver Benefits Fee.
Furthermore, Stout claims that aside from him, other GrubHub+ customers were enticed to sign up for a Grubhub+ subscription by the promise of unlimited free delivery. GrubHub, however, violated that pledge by adding a California Driver Benefits Fee to every GrubHub order.
Jesse Stout v. Grubhub Inc.
GrubHub is being sued in a class action lawsuit for allegedly advertising what translates to be a “bait and switch.”
Stout stated that GrubHub+ members paid $9.99/month for Unlimited Free Delivery, which GrubHub promised to provide. The promise of “unlimited free delivery” is critical for all GrubHub+ users, as it is the subscription’s sole purpose.
Plaintiff wishes to represent other California residents who enrolled in GrubHub’s unlimited free delivery service but were charged with the California Driver Benefits Fee.
The class action lawsuit accuses GrubHub of breaking California consumer protection laws and seeks monetary damages as well as an order prohibiting GrubHub from charging additional costs to the members.
Editor’s Note on GrubHub Unlimited Free Delivery Class Action Lawsuit 2021:
This article is written to inform you of GrubHub’s alleged fraudulent advertisement against its “Unlimited Free Delivery” promise.
Case Name & No.: Jesse Stout v. GrubHub Inc., Case No. 3:21-cv-04745-TSH
Jurisdiction: U.S. District Court – Northern District of California
Products/Services: GrubHub’s unlimited free delivery plan
Allegations: GrubHub promised “unlimited free delivery” on purchases over $12 in exchange for a $9.99 monthly subscription. However, the company began charging customers a “CA Driver Benefits Fee.”
Have you subscribed to GrubHub’s free delivery? Share your experience with us by clicking the “Contact Us” button below!
Suggested Article: GH Restaurant Commission Class Action Lawsuit.