Commonwealth of Massachusetts v. Grubhub Holdings Inc. and Grubhub Inc.

## Massachusetts Settles with Grubhub Over Misleading Driver Pay Claims **What Happened:** Massachusetts sued Grubhub, the food delivery company, claiming the company used deceptive marketing practices and misled drivers about how much money they could earn. The state argued that Grubhub made false advertising claims about driver compensation that didn't match reality. **What the Court Decided:** Rather than going to trial, Massachusetts and Grubhub reached a settlement agreement in April 2023. Under this settlement, Grubhub agreed to change its business practices and pay penalties to the state. The company had to modify how it advertises earning opportunities to drivers and how it represents compensation. **Why This Matters for Workers:** This case shows that states are willing to take action when companies mislead workers about potential earnings. For gig workers like delivery drivers, it's important that companies provide honest, accurate information about pay. The settlement sends a message that businesses cannot use deceptive marketing to attract workers with unrealistic income promises. Workers should always be skeptical of earning claims that seem too good to be true and look for specific, verifiable pay information rather than vague promises about potential income.