NYC settles with HungryPanda over ‘junk fees’ charged to eateries

food delivery — HungryPanda is a delivery platform used predominantly in New York’s Asian immigrant communities. (Source: Bigstock)

By Sean Cao April 10, 2026

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New York City authorities have announced a settlement of more than $875,000 with HungryPanda to resolve the delivery app’s violations related to “junk fees”.

An investigation previously found that HungryPanda, a third-party delivery platform used predominantly in New York’s Asian immigrant communities, violated the city’s fee cap regulations by charging restaurants thousands of dollars in illegal junk fees.

The company used a range of tactics to impose unlawful charges, including bundling multiple fees into a single line item, frequently relabeling fees and mischaracterizing illegal overcharges as “promotion deductions”.

As part of the settlement, the company will pay more than $580,000 in restitution to more than 380 restaurants citywide, along with more than $294,000 in civil penalties and fees.

HungryPanda must also comply with the Fee Cap Law, provide clear fee disclosures to restaurants, implement internal compliance policies and training, and submit annual certifications attesting to compliance.

The action marks the first time the Department of Consumer and Worker Protection (DCWP) has enforced the law against a delivery app for harming business owners.

NYC Mayor Zohran Kwame Mamdani said the settlement returns money to the businesses that were overcharged and makes clear that the city will enforce the law to protect small business owners.

“Too many neighborhood restaurants are already navigating high costs and razor-thin margins. They should not also have to contend with hidden, illegal fees from the apps they rely on to reach customers,” Mamdani said.

DCWP Commissioner Sam Levine added: “The Fee Cap Law was enacted to protect these small businesses from predatory fees that make operating in New York City difficult. This settlement lets it be known that DCWP will not allow HungryPanda, or any other delivery app for that matter, to rip off consumers, workers, or small businesses.”

Earlier this year, HungryPanda was part of a $5 million settlement alongside Uber Eats and Fantuan, due to violations of NYC’s Minimum Pay Rate that affected more than 49,000 delivery workers.