The lawsuit alleged that Grubhub obscured fees, listed more than 1,000 restaurants on its platforms without contracts with those businesses and often charged higher prices for items than the restaurants charged, without disclosing such information to consumers.

As of early 2026, Grubhub remains embroiled in several legal battles, most notably a major lawsuit filed by Los Angeles County (representing the state of California). The lawsuit alleges that Grubhub engaged in "bait-and-switch" tactics by advertising "free" or low-cost delivery while adding deceptive "service fees" and "driver benefit fees" at the final stage of checkout. Furthermore, the company was accused of misrepresenting search results by prioritizing restaurants that paid for placement rather than those most relevant to the user. Another significant legal issue involved a $7.15 million settlement finalized in early 2026 regarding the unauthorized listing of thousands of restaurants on their platform without the owners' consent. These lawsuits highlight a broader regulatory crackdown on the "gig economy" and delivery platforms, with courts increasingly siding with consumers and small business owners who claim that hidden fees and unauthorized listings constitute unfair competition and deceptive business practices.