On Monday, CO Craft, LLC and Arborz, LLC filed a class action complaint in the District of Colorado against meal delivery service Grubhub, Inc. alleging
A Spicy Relationship Between Uber-like Delivery Services And The Restaurants That Feed Them - Consumer Protection mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
, app-based food delivery services have faced backlash from restaurants over the delivery services’ use of their name on their platform without consent. Grubhub, is also a target of these claims in a suit pending in Colorado federal court (
C O Craft LLC d/b/a Freshcraft v. Grubhub). Like the other suits, this case is based on allegations of false advertising, contending that the service advertised a relationship with the restaurant where there was none and/or confusing the consumer into believing that the restaurant itself was closed when in fact it was not. What makes Grubhub unique is that there are multiple class actions pending with slightly different legal theories, creating conflict over resolution of the claims. However the Grubhub cases play out, they stand as a reminder to restaurants to police their presence on app-based food delivery services just like they would police customer reviews on Yelp and other platforms.
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Welcome to our April + May combined report on food litigation, regulatory trends and events. We have a lot to report in the food world, with a number of litigation currents starting to form, and some new waves building. Let’s see what happened….
New Filings
Cheesy Goodness? General Mills was hit with five putative class actions challenging its Annie’s mac and cheese marketing representations that the product is “Made with Goodness” when, in fact, it contains potentially harmful chemicals known as ortho-phthalates which are linked to asthma, breast cancer and diabetes. The cases are pending in the Southern and Eastern Districts of New York and the Northern District of California. The Kraft Heinz Company was named in similar suits filed in the Northern District of California and the Northern District of Illinois.
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Thank You! Law360 (May 14, 2021, 7:55 PM EDT) --
Friday, February 5, 2021
Disputes between restaurants and third-party food delivery services—such as Grubhub and Uber Eats—have made headlines over recent years. This tension has only been compounded by the COVID-19 pandemic. 2020 was a particularly tough year for restaurants across the country and even tougher in cities like New York where rents are high and state-mandated business closures resulted in significant cuts to already narrow profit margins. However, the same has not been true for third-party food delivery services. In 2020, food delivery apps saw substantial increases in revenues. Uber Eats, for example, reported revenues of $2.51 billion in 2019; that number jumped to approximately $3.5 billion for the first nine months of 2020.