BOSTON, Mass. (WWLP)– A Massachusetts Superior Court has ruled that Grubhub violated the statutory fee cap in place during the COVID-19 public health emergency.

Attorney General Andrea Joy Campbell said that the online food delivery service Grubhub Holdings Inc. illegally overcharged fees to Massachusetts restaurants.

In February 2021, the AG’s office sent letters to Grubhub and other online food delivery services reminding them about the 15 percent fee cap that was in place. In May 2021, the AG’s Office sent a cease and desist letter to Grubhub, demanding that the company cease charging covered establishments fees in excess of 15 percent of the purchase price of the online order, in violation of the law.

In a lawsuit initiated in July 2021, the AG’s office alleged that Grubhub violated a provision of the state’s economic development legislation, prohibiting Grubhub and other third-party delivery service companies from charging fees to restaurants that exceed 15 percent of an order’s menu price. The lawsuit specifically alleged Grubhub charged fees in excess of 18 percent of the order’s menu price. The fee cap came into effect on January 14, 2021 and remained in place until June 15, 2021, when former Governor Baker lifted the state of emergency in Massachusetts.

Grubhub opposed the lawsuit, arguing that it had not violated the Emergency Law and, that if it had violated the law, the law was unconstitutional. The AG Office’s lawsuit against GrubHub remains active and ongoing.