Grubhub drivers and customers are set to receive more than $23.8 million after the Federal Trade Commission said on Wednesday that it is distributing payments to 640,038 affected app users, mostly by mailed check and in some cases through PayPal. The payouts stem from a December 2024 lawsuit brought by the FTC and the Illinois Attorney General, which accused the Chicago-based company of deceptive practices including adding hidden "service" and "small order" fees, advertising restaurant partnerships that did not exist, locking some customer accounts with unused gift card balances, and overstating driver earnings. The complaint cited New York City ads promising drivers up to $40 per hour even though median pay was $10 an hour and only one driver in 1,000 reached the advertised rate. Grubhub said at the time of the settlement that it denied the allegations but agreed to resolve the case and move forward. Under the settlement, the company agreed to make substantial changes, including more honest driver-pay advertising, a tool for users to dispute blocked accounts, and listing only consenting restaurant partners. Most checks must be cashed within 90 days, while PayPal payments must be redeemed within 30 days.