Grubhub says its contract allowed it to create fake restaurant websites

Grubhub CEO Matt Maloney has responded to reports that his company creates fake websites for its restaurant partners, claiming that, according to its contract agreements, these businesses have signed away permission for Grubhub to engage in the marketing tactic on their behalf. According to a partial Grubhub contract obtained by the Los Angeles Times, a provision states that Grubhub “may create, maintain and operate a microsite (“MS”) and obtain the URL for such MS on restaurant’s behalf.”

Grubhub provided The Verge with a similar snippet. Grubhub charges varying tiers of commission fees, the highest being “marketing commission” at 20-plus percent. The contract does not explicitly specify whether these microsites are considered…

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from The Verge – All Posts