Investigations and the law are accusing grocery delivery apps and platforms like Grubhub, Walmart, Instacart, and Amazon of misleading pricing, subscription tactics, and driver pay practices.
The Federal Trade Commission is seeking public comment to address these allegations surrounding the grocery delivery platforms.
Officially, public comment is a form of communication to the government from the public, usually regarding a proposed rule. It is a formal process that allows citizens to provide input, support, or perhaps opposition to decision-makers with regard to public issues. These public comments serve as mechanisms for civic engagement, including hearings, town halls, or written submissions with the general public as the witness.
The request follows multimillion-dollar settlements that are facing those platforms. For instance, Walmart is being accused of underpaying drivers.
Of course, these retailers are denying the allegations, and they are disputing them with clearer standards. For one, “inaccurate” is the term that Grubhub calls the allegations, but it is reportedly moving on. Amazon is citing that the allegations were not clear.
Last April 10th, FTC submitted an Advanced Notice of Proposed Rulemaking, seeking written comments “including data, evidence, analyses, and arguments, to help determine how best to prevent unfair or deceptive acts or practices, and to ensure that the agency addresses concerns from both consumers and the industry.”
The comments are due around a month after that statement is made.
“Online grocery fees that are unclear, inconsistently disclosed, or revealed only at the last moment before consumers make a purchase distort competition and harm consumers,” stated Christopher Mufarrige, the Federal Trade Commission’s director for consumer protection.
For Grubhub, this stems from a $25 million settlement in 2024 that alleged the company engaged in an array of “unlawful” practices, including deceiving consumers of delivery costs, and workers about pay, and, listing restauarnts on the app without consent, some of which are previously reported here on Ridesharing Forum.
“Our investigation found that Grubhub tricked its customers, deceived its drivers, and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub – all in order to drive scale and accelerate growth,” Lina Khan, former FTC chair, stated in 2024. “Today’s action holds Grubhub to account, putting an end to these illegal practices and securing nearly $25 million for the people cheated by Grubhub’s tactics. There is no ‘gig platform’ exemption to the laws on the books.”
The Federal Trade Commission also accused Grubhub on “junk fees” and doubling the original prices of products.
Gruhub denies the allegations.
"At Grubhub, we’re committed to transparency so that every single day diners, restaurants, and drivers can make well-informed choices to do business with us. While we categorically deny the allegations made by the FTC, many of which are wrong, misleading, or no longer applicable to our business, we believe settling this matter is in the best interest of Grubhub and allows us to move forward,” it stated.
Meanwhile, Instacart is being told to implement clearer pricing, Walmart is being accused of deceiving drivers with their pay, and Amazon is facing problems with its delivery services.
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