New York City has reached a settlement with HungryPanda requiring restitution and civil penalties totaling more than $875,000 over illegal overcharges to hundreds of restaurants.

HungryPanda must pay more than $580,000 in restitution to over 380 restaurants and over $294,000 in civil penalties and fees, under the agreement.

City leaders, including the mayor and the deputy mayor for economic justice, described the settlement as a win for protecting small businesses and enforcing delivery-app laws.

The case references the city's Fee Cap Law, which limits delivery-app fees to 15% for delivery, 5% for basic services, and 3% for electronic processing, with higher caps only in limited scenarios.

The filing emphasizes transparency and accountability in how delivery apps price and disclose fees to restaurants.

This action is part of a broader NYC push to shield small, immigrant-owned restaurants from predatory app-fees, following a separate $5 million settlement earlier this year involving Uber Eats, Fantuan, and HungryPanda that affected thousands of workers.

Eyewitness News has sought comment from HungryPanda and is awaiting a response.

As part of the settlement, HungryPanda must comply with the Fee Cap Law, implement clear disclosures, establish internal compliance policies and training, and submit annual compliance certifications.

This marks the DCWP’s first enforcement of the Fee Cap Law against a delivery app for harming business owners.

The overcharges occurred from early 2022 through late 2024, a period when pandemic-era caps were in effect before the cap rose to 43% on June 30, 2025.

The settlement follows a separate January deal in which Uber Eats, Fantuan, and HungryPanda agreed to $5.1 million impacting thousands of delivery workers.

City officials announced the settlement at a public event, underscoring NYC’s commitment to fee transparency and protecting small businesses.