Massachusetts sues Grubhub over fees charged during pandemic

BOSTON (AP) — The Massachusetts attorney general’s office has sued online food delivery platform Grubhub for allegedly charging some restaurants in the state illegally high fees during the coronavirus pandemic.

The suit filed Thursday seeks refunds for those restaurants as well as civil penalties. According to the suit, Grubhub violated legislation that prohibited third-party delivery service platforms from charging fees to restaurants that exceed 15% of an order’s menu price.

The fee cap went into effect on Jan. 14 and ended June 15. The complaint says Grubhub routinely charged fees to restaurants that exceeded 18% of the menu price. Grubhub called the lawsuit baseless.