City Of Chicago Reaches $10 Mln Settlement With Uber Eats, Postmates

The City of Chicago has reached a $10 million settlement with Uber Technologies Inc. (UBER) stemming from the city's investigation that Uber Eats and Postmates listed restaurants on their platforms without the consent of the restaurants.

The City of Chicago Monday said that UberEats' and Postmates' practices of listing Chicago restaurants on their platforms without the restaurants' consent was in violation of the City's emergency fee cap ordinance, and other advertising-related conduct.

"Today's settlement reflects the City's commitment to creating a fair and honest marketplace that protects both consumers and businesses from unlawful conduct," said Mayor Lightfoot. "Chicago's restaurant owners and workers work diligently to build their reputations and serve our residents and visitors. That's why our hospitality industry is so critical to our economy, and it only works when there is transparency and fair pricing. There is no room for deceptive and unfair practices."

"We delivered on our commitment to protect consumers and businesses," said Kenneth J. Meyer, Commissioner, Chicago Department of Business Affairs and Consumer Protection. "The settlement is the result of the City acting swiftly and holding companies accountable for deceitful practices."

"We welcome any relief provided to the independent restaurants that struggled throughout the pandemic and continue to shoulder the rising costs of doing business," said Sam Toia, President and CEO, Illinois Restaurant Association. "No third party delivery company should be listing restaurants without their consent, and all third party companies should have been following the emergency cap imposed during the pandemic. Our restaurants will receive immediate benefit from this settlement."

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