Grubhub Hit With Class Suit Over Restaurant Phone Orders

Law360 (March 24, 2021, 5:10 PM EDT) -- Grubhub has been hit with a proposed class action in Illinois federal court claiming the online food-ordering company wrongly charges as many as 300,000 restaurants nationwide for commissions of 10% to 20% on phone calls that don't result in takeout or delivery orders.

Lead plaintiff Zay Toon Inc., a Nevada corporation that owns and operates Zaytoon Restaurant & Market in Las Vegas, alleges in its Tuesday complaint that Grubhub Holdings Inc. has improperly deducted commissions for "sham" telephone orders for at least nine years. The suit claims that many of the calls getting redirected from Grubhub's platform to restaurant kitchens don't...

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