Lawsuit Filed Against Third-Party Delivery Companies

A proposed class-action lawsuit has been filed in federal court alleging third-party delivery services including DoorDash, Grubhub, Postmates and UberEats, are using "unlawful" tactics.

The civil antitrust suit was filed in the U.S. District Court for the Southern District of New York on April 13 over their use of “no price competition clauses,” which force restaurants to charge uniform prices for menu items, even for food orders that were not generated through their digital platforms, reports legal news site Law.com.

This lawsuit, Davitashvili v. GrubHub,  comes as COVID-19 pandemic rages on and restaurant dining rooms remain closed. Restaurants that can are leaning on carryout, self-delivery and third-party delivery services to survive. Consumers are seeking out delivery like never before.

The plaintiffs, Mariam Davitashvili, Adam Bensimon and Mia Sapienza, are represented by Gregory Frank, Marvin Frank and Asher Hawkins of Frank LLP  in Manhattan.