GrubHub is facing a potential class action lawsuit after being sued by two restaurants because the digital food delivery company allegedly added its facility to its service without permission.
The complaint – filed by Antonia’s in Hillsborough, NC, and Farmer’s Wife in Sebastopol, California ̵1; came on behalf of the 150,000 non-partner restaurants that have been added to GrubHub since 2019.
Restaurants filed a lawsuit in federal court in Chicago on Monday,
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The plaintiff’s attorney, the Gibbs Law Firm, states on its website “by including restaurants, including their names and logos, on its website without authorization, Grubhub creates the mistake for consumers and damage the restaurant’s reputation and business. “
The lawsuit also stated that when someone ordered delivery from a non-partner restaurant on GrubHub, the company asked its drivers to order directly to the restaurant and pretend to be a customer when they took it. food.
GrubHub told FOX Business that the company did not comment on the pending lawsuit.
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GrubHub isn’t the only food delivery company to include non-partner restaurants in its app. GrubHub has started practicing to keep up with competitors DoorDash and Postmate.
But these companies also face legal action for posting information from non-partner restaurants on their platforms.
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Last month, DoorDash was sued for allegedly misrepresenting a restaurant headquartered in St. Petersburg. Louis, says that the restaurant is closed or too far for delivery when a customer tries to order from the facility.
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DoorDash was also sued by In-N-Out in 2015 for using the name and logo of the restaurant chain without permission, Restaurant Dive reported.
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Some states are taking action. As of January, delivery apps will no longer be allowed to enter non-partner restaurants in California after Gavin Newsom’s Gov.
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