NEW YORK (WCBS 880) – Local restaurants are fighting food delivery giant GrubHub, complaining of fake websites and bogus fees that have nothing to do with food orders.
…Chirico spoke at a news conference organized by Sen. Chuck Schumer on Sunday. The senator says GrubHub needs to “clean up” its act.
“GrubHub has been taking advantage of restaurants,” Schumer said.
He wants the Small Business Administration to produce a full report to Congress on its investigation into the fees. He’s also urging the Federal Trade Commission to be ready to act.
The Democratic senator says GrubHub should eat any potential business losses instead of customers.
“We need the feds to intervene and we need GrubHub first and foremost to stop this themselves,” Schumer said.
He said GrubHub is blaming the issue on a faulty algorithm that’s making mistakes and ringing up millions in false fees for New York restaurants.