BOSTON (WBZ NewsRadio) — Massachusetts Attorney General Maura Healey's Office announced it was suing the restaurant delivery app Grubhub on Thursday.
The AG's office said the company violated part of the state's emergency COVID-19 orders, that restricted delivery services from restaurants from charging restaurants more than 15% of each order's price in fees.
Grubhub contracts with local restaurants to process payments, deliver their food and advertise for them.
Attorney General Maura Healey said the app had "knowingly and repeatedly" broke the law, costing local restaurants thousands of dollars by charging fees of up to 18% of each item's menu price.
Prosecutors are asking for refunds for the restaurants they say were affected, on top of penalty of $5000 penalty for each violation.
Grubhub responded to a request for comment on Thursday, calling the lawsuit and allegations "baseless." The company said that although the COVID-19 price controls were neither "legal or appropriate," it complied with the law while it was in effect and looks forward to disputing the lawsuit in court.
Written by Chaiel Schaffel