Regulators challenged tactics Grubhub employed amid a fierce battle for market share with DoorDash and Uber Eats. Photo: Diego M. Radzinschi/ALM$25M Grubhub Settlement Sheds Light on How Other Gig Economy Firms Can Avoid Regulatory Trouble
“There is no ‘gig platform’ exemption to the laws on the books," Federal Trade Commission Chair Lina Khan said.
December 18, 2024 at 01:40 PM
8 minute read
The $25 million settlement that regulators announced with the food delivery service Grubhub on Tuesday should serve as a cautionary tale for other gig economy businesses tempted to engage in deception in their zeal to become a market leader, a Federal Trade Commission staff attorney says.
"So, you've developed a technology-driven delivery platform connecting businesses to customers, powered by gig workers doing the driving. Now you need to convince businesses to offer products on your platform, customers to use the platform, and workers to make the deliveries," staff attorney Julie Solomon Ensor wrote on the FTC blog Tuesday.
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