Windy City Media Group Frontpage News

THE VOICE OF CHICAGO'S GAY, LESBIAN, BI, TRANS AND QUEER COMMUNITY SINCE 1985

home search facebook twitter join
Gay News Sponsor Windy City Times 2021-12-08
DOWNLOAD ISSUE
Donate

Sponsor


  WINDY CITY TIMES

City of Chicago files lawsuits against DoorDash, GrubHub
--From a press release
2021-08-28

This article shared 783 times since Sat Aug 28, 2021
facebook twitter google +1 reddit email


CHICAGO — Mayor Lori E. Lightfoot, Acting Business Affairs and Consumer Protection (BACP) Commissioner Kenneth Meyer and Corporation Counsel Celia Meza announced that the City of Chicago has filed two lawsuits against meal delivery giants Grubhub and DoorDash. These lawsuits are the result of a collaborative investigation led by BACP and the City's law department.

They are the first comprehensive law enforcement actions against meal-delivery companies in the United States.

The lawsuits assert claims under the Chicago Municipal Code for engaging in deceptive and unfair business practices that harm restaurants and mislead consumers. They seek injunctive relief in the form of greater transparency and other key conduct modifications, restitution for restaurants and consumers hurt by these predatory tactics, and civil penalties for violations of the law.

The complaints allege that DoorDash and Grubhub's misconduct has been ongoing for years and continues to this day. Specifically, both DoorDash and Grubhub:

—Advertise order and delivery services from unaffiliated restaurants without their consent, leaving restaurants to repair reputational damage and resolve consumer complaints caused by Defendants.

—Lure consumers into a bait-and-switch with deceptively small delivery fees upfront, only to charge misleading fees at the end of the transaction. This increases the total cost of delivery by as much as six times the amount initially advertised.

—Hide that menu prices on their platforms are often significantly higher than the prices available if ordering directly from the restaurant.

Other misconduct is specific to each company. Grubhub's exploitative tactics have included:

—Publishing deceptive "routing" telephone numbers that Grubhub represented as the restaurant's direct number, and regularly charging commissions even when calls to these numbers did not result in an order.

—Creating and maintaining "impostor websites" for restaurants, which look like the restaurant's actual website but route unsuspecting consumers to Grubhub.

—Launching deceptive, promotional campaigns to "save restaurants" during the pandemic, while forcing participating restaurants to extend their contracts, cover the cost of the promotions, and pay Grubhub its full commission on all orders.

—Violating the City's emergency cap of 15% on restaurant commissions.

DoorDash's specific misconduct has included:

—Misleading consumers to believe they were tipping drivers directly, when in fact the customer "tip" was used to subsidize DoorDash's own payment to its drivers.

—Imposing a misleading "Chicago Fee" of $1.50 on every order in the City, deceptively implying the fee was required by, or paid to, Chicago—when in fact DoorDash was the sole beneficiary.

At the height of the 2020 lockdown, approximately half of Chicago's 7,500 restaurants had closed either temporarily or permanently. The Federal Reserve estimated that approximately 44,000 restaurant workers in the Chicago area lost their jobs in 2020. Meanwhile, sales for meal delivery service platforms have soared since pandemic-related health restrictions forced restaurants to close or severely limit indoor dining. From 2019-2020, year-over-year total orders placed with meal delivery service platforms have more than tripled nationally — from 263 million to 816 million. As Defendants' business surged, their predatory practices persisted.

"We discovered that Grubhub and DoorDash have been engaging in deceptive and misleading business practices that harm consumers and exploit restaurants. These practices continued unabated during the pandemic when restaurants were struggling to survive," said Meyer. "We heard from the hospitality industry and Chicago's consumers about these unfair practices and this action demonstrates we will hold non-complying businesses accountable."

The City is represented in these lawsuits by in-house counsel from the Affirmative Litigation Division in its Department of Law and by the law firm of Cohen Milstein Sellers & Toll PLLC.

If any Chicago restaurant or consumer wishes to inform the City about their experience with meal delivery companies, email mealdelivery@cityofchicago.org .


This article shared 783 times since Sat Aug 28, 2021
facebook twitter google +1 reddit email

  ARTICLES YOU MIGHT LIKE

Gay News

WORLD Namibia ruling, crimes, LGBTQ+ film festival, blogger sentenced 2022-01-23
- Namibia's High Court ruled against two same-sex couples fighting for recognition of their marriages, with Judge Hannelie Prinsloo saying she agreed with them but was bound by the nation's prohibition of same-sex relations, Reuters reported. Daniel ...


Gay News

NATIONAL Trans deaths, N.J. official, political items, 'Queer Eye' 2022-01-23
- The murders of two Black transgender women in the early days of the new year struck an ominous tone in the wake of two of the deadliest years on record for transgender Americans, Gay City News ...


Gay News

HRC condemns NCAA for failure to protect LGBTQ+ athletes 2022-01-21
-- From a press release - WASHINGTON, D.C. — Late last night, the NCAA ratified (https://www.ncaa.org/news/2022/1/20/media-center-ncaa-members-approve-new-constitution.aspx) its new constitution, which does not include nondiscrimination policy language that had ...


Gay News

Abortion Rights Panel marks 49th anniversary with demand to defend historic Roe v Wade 2022-01-21
-- From a press release - CHICAGO — To commemorate the 49th anniversary of Roe v Wade, a diverse national panel of speakers will demand that the U.S. Supreme Court uphold Roe, defending 50 years of legal abortion, and that supporters mobilize ...


Gay News

Former pope faulted in report on sexual abuse in German diocese 2022-01-20
- A long-awaited report on sexual abuse in Germany's Munich diocese faulted retired Pope Benedict XVI's handling of four cases when he was archbishop in the 1970s and 1980s, The Chicago Tribune reported. Westpfahl Spilker Wastl, the ...


Gay News

Planned Parenthood Illinois Action launches virtual Black Community Town Hall Series in February 2022-01-20
-- From a press release - CHICAGO - Planned Parenthood Illinois Action (PPIA) proudly announces a new Black Community Town Hall series in honor of Black History Month. The series of virtual discussions will tackle topics such as community wellness and care, ...


Gay News

'Jane's Army' to recruit, deploy pro-choice volunteers 2022-01-20
-- From a press release - Chicago, IL — Personal PAC, Men4Choice, and Future Voices Council have launched Jane's Army — a joint campaign to recruit activist volunteers to educate, motivate, and activate pro-choice voters ahead of the critical 2022 election. This ...


Gay News

Human Rights Campaign Foundation releases new data on the LGBTQ+ wage gap 2022-01-19
-- From a press release - WASHINGTON — Today, the Human Rights Campaign Foundation, the educational arm of the Human Rights Campaign, the nation's largest lesbian, gay, bisexual, transgender and queer (LGBTQ+) civil rights organization, released ...


Gay News

Human Rights Campaign celebrates advances in LGBTQ+ policies one year into Biden-Harris administration 2022-01-19
-- From a press release - WASHINGTON, DC — One day before the one year anniversary of the inauguration of President Joe Biden and Vice President Kamala Harris, the Human Rights Campaign (HRC) celebrates the advances that have been made in LGBTQ+ ...


Gay News

Chief Judge Evans responds to Mayor Lightfoot's request on electronic monitoring 2022-01-18
-- Press release from Office of the Chief Judge Cook County Circuit Court - Chief Judge Timothy C. Evans responded Jan. 19 to Chicago Mayor Lori Lightfoot's request for a moratorium on use of electronic monitoring for defendants accused of certain violent crimes by pointing out the national and state ...


Gay News

Texas' anti-trans youth sports law goes into effect 2022-01-18
- A new Texas law bars transgender student athletes from competing on school sports teams that align with their gender identity, Houston Public Media reported. House Bill 25 is one of several laws that went into effect ...


Gay News

Rabbi taken hostage in Texas LGBTQ-friendly synagogue expresses thanks 2022-01-17
- Rabbi Charlie Cytron-Walker, who was among the four hostages freed Jan. 15 from a Dallas-area synagogue, said there was "no question" the experience was traumatic, and thanked the community and world for the prayers and love, ...


Gay News

NATIONAL Lambda Legal, Penn. city's change, couple on the run, Bayard Rustin 2022-01-16
- Lambda Legal filed a complaint with the federal Equal Employment Opportunity Commission (EEOC) against the Dallas Arboretum and Botanical Society, Inc. on behalf of a former employee who was fired after they and other Dallas Arboretum ...


Gay News

National LGBTQ Task Force Action Fund ED urges action on voting rights 2022-01-14
-- From a press release - "The National LGBTQ Task Force Action Fund urges the U.S. Senate to pass the Freedom to Vote Act and the John Lewis Voting Rights Advancement Act. Voting rights are a cornerstone of our democratic process and ...


Gay News

Plaintiff in historic Florida marriage-equality lawsuit found dead 2022-01-14
- In Florida, Jorge Diaz-Johnston was recently found dead in a Jackson County landfill, ABC News reported. Diaz-Johnston, 54, was reported missing on Jan. 3 near his workplace and police are investigating his death as a homicide, ...


 



Copyright © 2022 Windy City Media Group. All rights reserved.
Reprint by permission only. PDFs for back issues are downloadable from
our online archives. Single copies of back issues in print form are
available for $4 per issue, older than one month for $6 if available,
by check to the mailing address listed below.

Return postage must accompany all manuscripts, drawings, and
photographs submitted if they are to be returned, and no
responsibility may be assumed for unsolicited materials.
All rights to letters, art and photos sent to Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago
Gay and Lesbian News and Feature Publication) will be treated
as unconditionally assigned for publication purposes and as such,
subject to editing and comment. The opinions expressed by the
columnists, cartoonists, letter writers, and commentators are
their own and do not necessarily reflect the position of Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago Gay,
Lesbian, Bisexual and Transegender News and Feature Publication).

The appearance of a name, image or photo of a person or group in
Nightspots (Chicago GLBT Nightlife News) and Windy City Times
(a Chicago Gay, Lesbian, Bisexual and Transgender News and Feature
Publication) does not indicate the sexual orientation of such
individuals or groups. While we encourage readers to support the
advertisers who make this newspaper possible, Nightspots (Chicago
GLBT Nightlife News) and Windy City Times (a Chicago Gay, Lesbian
News and Feature Publication) cannot accept responsibility for
any advertising claims or promotions.

 
 

TRENDINGBREAKINGPHOTOS







Sponsor
Sponsor


 



Donate


About WCMG      Contact Us      Online Front  Page      Windy City  Times      Nightspots      OUT! Guide     
Identity      BLACKlines      En La Vida      Archives      Advanced Search     
Windy City Queercast      Queercast Archives     
Press  Releases      Join WCMG  Email List      Email Blast      Blogs     
Upcoming Events      Todays Events      Ongoing Events      Bar Guide      Community Groups      In Memoriam      Outguide Categories      Outguide Advertisers      Search Outguide      Travel      Dining Out      Privacy Policy     

Windy City Media Group publishes Windy City Times,
The Bi-Weekly Voice of the Gay, Lesbian, Bisexual and Trans Community.
5315 N. Clark St. #192, Chicago, IL 60640-2113 • PH (773) 871-7610 • FAX (773) 871-7609.