If you own a restaurant that has partnered with Grubhub, you may have been harmed by an allegedly deceptive, bait-and-switch tactic employed by Grubhub to pocket your money. To protect yourself, contact Franklin D. Azar and Associates P.C. Immediately at (800) 716-9032 or email us at consumer@FDAZAR.COM For A Free Consultation.
On August 6, 2019, an investigation into the Yelp phone application found that Yelp – through its partnership with the online and mobile food ordering company Grubhub – has been allegedly deceiving consumers into placing orders through Grubhub, thereby allowing Grubhub to collect “referral fees” of between 15 percent and 20 percent of the order total.
When a Yelp user attempts to call a restaurant by selecting the listed phone number, the user is provided with two options: 1. Delivery or Takeout, or 2. General Questions. If the user selects “General Questions,” the user would be routed directly to the restaurant. However, if the user selects “Delivery or Takeout,” the user is secretly routed to a Grubhub-owned phone line, which then seamlessly transfers the user to the restaurant’s direct line. This allegedly deceptive practice allowed Grubhub to surreptitiously track the Delivery or Takeout user’s order as a “marketing call,” and facilitated what Grubhub calls a “referral fee” of between 15 percent and 20 percent of the order total, which Grubhub then billed directly to the restaurant.
Franklin D. Azar & Associates is well known in the class action community. For over 30 years, our attorneys have protected the rights of individuals who have been taken advantage of by big corporations, and during that time, have secured over $1.5 billion in compensation – including over $750 million from Walmart in a wage and hour dispute that spanned approximately 26 states. FDAzar has been and is involved in class actions and mass tort against other large corporations like Facebook, Google, Marriot, Discover, Toyota, Hewlett Packard, drug manufacturers, medical device manufacturers, and 401k providers. Our class action department is staffed with experienced and knowledgeable attorneys who focus on litigating large, complex cases on behalf of consumers, employees and investors who have suffered losses.