Grubhub limits its financial responsibility to you by excluding most categories of damages, meaning the company cannot be held liable for lost profits, data loss, or most indirect harms you suffer from using the service.
This analysis describes what Grubhub's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
If Grubhub's service causes you harm beyond a direct, quantifiable loss, such as a missed event due to a failed delivery or data loss, this clause significantly limits what you could recover even if you win a dispute.
Interpretive note: Enforceability of the liability exclusion varies by jurisdiction and claim type; several states prohibit contractual exclusion of liability for negligence or statutory consumer protection claims.
This clause caps the types of damages you can recover from Grubhub, excluding consequential and punitive damages, which means your practical recovery in any dispute may be limited to direct out-of-pocket losses only.
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You will remain responsible for any amounts you fail to pay in connection with your subscription, including collection costs, bank overdraft fees, collection agency fees, reasonable attorneys' fees, and arbitration or court costs.
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"IN NO EVENT SHALL GRUBHUB, ITS OFFICERS, DIRECTORS, EMPLOYEES, OR AGENTS, BE LIABLE TO YOU FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION, LOSS OF PROFITS, DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES, RESULTING FROM YOUR ACCESS TO OR USE OF (OR INABILITY TO ACCESS OR USE) THE SERVICES.— Excerpt from Grubhub's Grubhub Terms of Use
REGULATORY LANDSCAPE: Limitation of liability clauses in consumer contracts are broadly standard but may be constrained by state consumer protection statutes that prohibit disclaimers of liability for negligence, fraud, or willful misconduct. California Civil Code and similar statutes in other states may limit the enforceability of such disclaimers against consumers. GOVERNANCE EXPOSURE: Medium. The exclusion of consequential, incidental, and punitive damages is broadly consistent with industry standard for platform terms of service, but the combined effect of this clause with the arbitration provision and class action waiver substantially limits aggregate consumer recovery exposure for Grubhub. JURISDICTION FLAGS: Several states, including New Jersey and Massachusetts, have consumer protection statutes that may override contractual limitations on liability for certain consumer harms. EU consumer protection law generally prohibits terms that disproportionately limit consumer rights. The provision's enforceability may also vary depending on the nature of the claim (e.g., personal injury versus economic loss). CONTRACT AND VENDOR IMPLICATIONS: The limitation of liability clause benefits Grubhub's risk profile but may shift residual loss risk to consumers and restaurant partners depending on how the clause interacts with partner agreements. Merchants should review whether their commercial agreements provide different liability terms. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the limitation of liability as written would be enforceable in the primary consumer jurisdictions of operation, and whether any carve-outs are required for claims involving personal injury, fraud, or statutory consumer protections that cannot be waived by contract.
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If Grubhub's service causes you harm beyond a direct, quantifiable loss, such as a missed event due to a failed delivery or data loss, this clause significantly limits what you could recover even if you win a dispute.
This clause caps the types of damages you can recover from Grubhub, excluding consequential and punitive damages, which means your practical recovery in any dispute may be limited to direct out-of-pocket losses only.
ConductAtlas has identified this type of provision across 266 platforms. See the full comparison.
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