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Court Rules Grubhub Overcharged Mass. Restaurants During Pandemic

By Tom Marino | March 21, 2023
Last Updated: March 21, 2023

BOSTON – Attorney General Andrea Joy Mitchell announced that a Suffolk Superior Court ruled last week that Grubhub, the online food delivery service platform, overcharged fees to Massachusetts restaurants during the pandemic.

Massachusetts instituted a statutory fee cap during the COVID-19 public health emergency limiting third-party delivery services platforms to no more than 15 percent. The fee cap was in place from Jan. 14, 2021 to June 15, 2021. when the state of emergency was lifted.

A lawsuit by the Attorney General’s office alleges Grubhub charges fees in excess of 18 percent.

In opposing the lawsuit, Grubhub has argued that it had not violated the Emergency Law, and if it had, the law was unconstitutional.

The office of then Attorney General Maura Healey sent a reminder letter to delivery services about the limit in February 2021 and a cease and desist  letter to Grubhub in May 2021, demanding the company stop charging covered establishments over the statutory limit of delivery fees.

The lawsuit is active and ongoing, according to Mitchell’s office.

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