On Monday, CO Craft, LLC and Arborz, LLC filed a category motion grievance within the District of Colorado towards meal supply service Grubhub, Inc. alleging false promoting claims beneath the Lanham Act.
The grievance alleges that Grubhub has created touchdown pages for many eating places in main metropolitan areas together with these that don’t do enterprise with Grubhub that may be accessed via its totally different platforms.
The grievance purports that the touchdown pages for eating places that don’t do enterprise with Grubhub embrace a message stating, “This restaurant just isn’t taking on-line orders. Strive an identical restaurant close by,” after which directs the potential client in the direction of one in all Grubhub’s accomplice eating places.
The grievance states that Grubhub has carried out this observe even when the plaintiffs’ eating places had been open and taking on-line orders and delivering them via a special platform. Additional, the plaintiffs state that Grubhub has optimized its touchdown pages and constructs its metadata in order that Google search outcomes prioritize Grubhub-created touchdown pages. This causes the Grubhub touchdown web page for non-partner eating places to be one of many high search outcomes, deceptive potential prospects to consider the restaurant just isn’t taking orders.
The plaintiffs argue that via this observe, Grubhub employed a nationwide false promoting marketing campaign to steer patrons to its accomplice eating places by falsely declaring that its rivals are closed or not accepting on-line orders when they’re actually open for enterprise. The plaintiffs allege that Grubhub willfully and knowingly employed its internet advertising to the detriment of its rivals.
Accordingly, the plaintiffs filed the current swimsuit towards Grubhub on behalf of themselves and equally located eating places alleging false promoting beneath the Lanham Act and searching for class certification, declaratory and injunctive reduction, precise and treble damages, pre- and post-judgment curiosity and attorneys’ charges. The plaintiffs are represented by The Regulation Workplaces of Ross Ziev, PC and Liddle Sheets Coulson P.C..