Los Angeles County sues Grubhub over ‘bait and switch’ fees

The county calls for an injunction against alleged deceptive business practices and for Grubhub to pay fines for possible violations of California’s unfair competition and false advertising laws. Dive Brief: Dive Insight: LA County alleges the company was showing consumers advertisements that promised free online ordering before charging them fees at checkout. Grubhub said in a statement emailed …

L.A. County sues Grubhub for passing along refund charges to restaurants

Los Angeles County is asking a California court to block Grubhub from charging restaurants when customers of the delivery service demand a refund, regardless of which party may be at fault. The request is part of a lawsuit filed Tuesday that accuses the delivery service of routinely misleading consumers, shaving the income of its drivers …

What does a service fee ban mean for California diners? Expect that $39 chicken to cost $49

Coming this summer is a new state law that bans unadvertised service fees, surcharges and other additional costs that are added to the end of a bill for meals or delivery service. On July 1, Senate Bill 478, which Gov. Gavin Newsom signed into law in October, is set to prohibit “junk fees” across a …

Seattle City Council President Sara Nelson ‘very worried’ about fallout from food delivery shake-up

A controversial new minimum wage law for gig workers in Seattle that is drawing ire from tech giants has become one of Sara Nelson’s first policy issues to tackle in her new role as city council president. Nelson, elected to the council in 2021 and appointed as president in January, spoke to GeekWire this week about the ordinance …

L.A. County suing Grubhub, alleging shady business practices

Citing alleged deceptive business practices, Los Angeles County filed a lawsuit against food-delivery service Grubhub on Wednesday, according to officials. The lawsuit accused the food-delivery giant of several practices the county deemed to “take advantage” of consumers, drivers and restaurants. “This lawsuit sends a clear message: Los Angeles County will not tolerate businesses that deceive …

Florida’s proposed ‘pro-restaurant’ regulations will hurt small, independent restaurants

‘I appreciate the efforts of the bill sponsors in both chambers, but these bills, as written, can’t pass if we want to preserve the economic vitality and culinary diversity of the restaurant industry in Florida.’ The pandemic created a dramatic increase in usage of online food ordering platforms. Today, roughly 40% of restaurant sales come from online …

App-based food delivery drivers and customers react to Seattle’s new hefty fees

SEATTLE (KOMO) — Food and grocery delivery drivers and their customers are feeling the pinch following Seattle’s newly-enacted minimum pay law for app-based workers, impacting companies like DoorDash, Uber Eats, Instacart and Grubhub. App-based food delivery drivers and customers react to Seattle’s new hefty fees (KOMO) The new regulations added a fee to support drivers who …

DoorDash To Raise NYC Delivery Fees After New Minimum Wage Law

A new law in December guarantees fair compensation for 65,000 gig workers in New York City, who are essential for food delivery services. The minimum wage law forces food-delivery apps, like DoorDash, Grubhub, and Uber Eats, to pay gig workers at least $17.96 an hour. As a result of higher hourly wages, The New York Post obtained …

DoorDash increases NYC delivery fees following new minimum wage rules

DoorDash customers in NYC will notice a new fee tacked onto their bill when they purchase food for delivery through the app. The company has started charging users $2 more for deliveries in NYC as a response to the city’s new minimum wage law, a spokesperson has confirmed to Business Insider. It warned users back in December that the …

PROGRESSIVISM: Seattle’s “living wage” fee meant to help delivery drivers is causing drivers to make less because people stopped placing orders

WELCOME TO BASIC ECONOMICS 101, A SUBJECT NO LEADER IN SEATTLE EVER PASSED. The Seattle City Council passed a law requiring minimum compensation for gig workers (Doordash drivers and the like), and now the delivery apps have introduced new fees to cover the cost, which is causing customers not to use the apps, so now …