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5h ago

NYC Forces HungryPanda To Repay Restaurants In $875,000 Settlement Over Illegal Fees

The case signals a broader City Hall push to police delivery‑app fees that hit small, immigrant‑owned restaurants.

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Affordable housing has become a central part of NYC Zohran Mamdani's agenda.
Red panda/consumer and worker protection advocate.

Overview

  • The consent settlement announced Wednesday requires HungryPanda to pay more than $875,000 after city investigators found it overcharged restaurants.
  • The Department of Consumer and Worker Protection said the app hid extra costs by mislabeling fees, relabeling charges, and bundling multiple fees into one line item.
  • The order includes more than $580,000 in restitution to over 380 restaurants and more than $294,000 in civil penalties and fees.
  • Regulators said the overcharges spanned January 2022 through September 2024 under a 23% fee cap and continued before June 30, 2025, when the cap rose to 43%.
  • Many of the affected businesses are immigrant‑owned in neighborhoods like Sunset Park and Flushing, and the settlement also requires clear fee disclosures, compliance policies, and yearly certifications as the city vows more enforcement.