In the COVID-19 pandemic, Chicago authorities accused DoorDash or Grubhub of injured consumers and the city via over-charges and other disappointing methods as the supply and taking of goods became essential for the industry.
The local governments are the most extensive of their kind in their lawsuit against the delivery companies.
The Mayor, Lori Lightfoot, stated that in these very difficult economic times, it was very troubling and sad that law was broken by these companies, using restaurants and clients who tried to stay on the floor.
The representatives of the two companies characterized the charges submitted in the Cook County Circuit Court on Friday as “baseless.”
Other towns and states in the past have targeted delivery businesses, but these efforts concentrated on specific laws rather than on Chicago’s attacks on numerous elements of the functioning of companies.
The San Francisco District Attorney has appointed delivery companies as independent contractors in contravention of California law. And in 2019, Washington, D.C., settled with DoorDash, claiming that the company misled consumers about the number of drivers.
In July, the Massachusetts Office of the Attorney general accused Grubhub of charging customers illegally during the outbreak. The state has restricted charges for much of 2020.
The Chicago complaints indicated that, without their approval, both companies pushed delivery of restaurant services, which jeopardizes the reputations of companies when they show disregard for price or service.
In addition, municipal inspectors found that both delivery companies ask higher prices for products than what restaurants charge on their menus and charge customers more than initially indicated total cost.
Taylor Bennett, a DoorDash spokesman, said that the action is “baseless.”
Bennett said DoorDash partnered with Chicago throughout the whole pandemic to eliminate restaurant charges, provide $500,000 in direct funds, provide great job opportunities, and transport food and other critical products to needy districts. He claimed this dispute would be expensive for taxpayers and would not produce any outcomes.
Speaker for Grubhub, Grant Klinzman, is disappointed with Lightfoot’s decision to go to the proceedings.
“We totally reject any charges and we will defend our business practices aggressively,” he said. “We are looking forward to our chance to answer in court and are confident we’re going to win.”
The complaints do not specify the pecuniary penalty as a whole. In the future, the city seeks a fine for every violation of the city law and an order so that it not be violated.