Chicago (AP) — Chicago officials on Friday charge high fees and through other deceptive practices when the delivery and take-out business becomes integral to the industry during the COVID-19 outbreak. , DoorDash and GrubHub have accused them of harming restaurants and their customers in the city.
City officials believe that proceedings against delivery companies are the most widespread of the types filed by the city.
In a statement, Mayor Lori Wrightfoot said, “These companies were struggling to break the law at these incredibly difficult times and float using unfair and deceptive tactics. I am deeply concerned about using restaurants and consumers, and I am sorry. “
Representatives from both companies called the proceedings filed in the Cook County Circuit Court on Friday “unfounded.”
Shipping companies were previously targeted by legal authorities in other cities and states, but these efforts targeted specific policies compared to Chicago’s attacks on many elements of the company’s operations.
A district attorney in San Francisco has accused the delivery company of violating California law by classifying the driver as a contractor. Washington, DC, and reached a settlement with DoorDash in 2019 after claiming that the company misunderstood customers about the number of drivers it received on chips.
In July, the Massachusetts Prosecutor’s Office filed a lawsuit alleging that GrubHub illegally charged the restaurant a high fee during a pandemic. The state has capped most tariffs in 2020.
According to a Chicago lawsuit, the two companies are promoting delivery services to restaurants without agreement, damaging the company’s reputation if customers are dissatisfied with costs and services.
City investigators also found that the two companies charged higher prices than restaurants set on their own menus, and the total price was higher than initially disclosed to customers.
DoorDash spokesman Taylor Bennett called the proceeding “unfounded.”
“DoorDash has worked with the city of Chicago throughout the pandemic to exempt restaurants, provide $ 500,000 in direct grants, create strong income opportunities, and deliver food and other necessities to needy communities. I’ve done it, “says Bennett. I will not deliver anything. “
Grant Klinzman, a spokesman for GrubHub, said he was disappointed with Lightfoot’s decision to file a proceeding.
“All claims are categorically wrong and we actively defend business practices,” he said. “We look forward to responding in court and we are confident we will win.”
The proceedings do not specify the total monetary penalties they are seeking. The city imposes a fine each time it violates a city ordinance and seeks an order to prevent the violation.
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Chicago: DoorDash, Grubhub misleads restaurants, customers | Work
Source link Chicago: DoorDash, Grubhub misleads restaurants, customers | Work