New Bill Aims for Transparency in Food Delivery Pricing
Food and grocery delivery applications will need to ensure that users can see all fees upfront, with a new legislation proposed by Representative Dan Goldman.
Goldman, a Democrat from New York, believes that the Promotion of Real-Time Expenditure Information Act (PRICE) will help consumers more easily compare costs across popular apps.
“As anyone who has ordered food or groceries recently knows, these delivery apps often surprise us with unexpected fees that inflate the total price,” Goldman noted.
“Americans deserve to understand what they are paying for and shouldn’t encounter hidden charges,” he added. “The PRICE Act mandates that delivery apps clarify all costs from the start and explain their fees, allowing consumers to shop confidently without facing surprise expenses at checkout.”
This applies to major companies like DoorDash, Grubhub, and Uber Eats.
If this legislation passes, food delivery services found to be in violation could face penalties from the Federal Trade Commission (FTC) for misleading or unfair practices.
The FTC would take the lead in enforcing this policy, with authority to decide how rigorously to implement it.
In addition to requiring transparent pricing, companies must also offer a clear breakdown of charges that justifies each fee.
One reason behind this legislation is a study indicating that consumers in America spend 80% more on food delivery compared to picking up their orders in person.
This finding raised alarms about monitored pricing, a tactic where companies use personal data like browsing history or location to determine personalized prices.
Sometimes, customers might need to check back to confirm an order, only to find the price has increased.
Criticism of these practices has been voiced by groups such as the Consumer Federation of America.
According to the bill, companies would be prohibited from using personal data—such as browsing history, device type, or location—to set individualized prices.
Goldman has expressed particular concern about how this could affect older consumers.
In the Senate, Senator Ben Ray Luján has introduced a complementary bill.
“Frequently, Americans are blindsided by high costs due to hidden fees that delivery apps don’t mention until checkout,” Luján stated. “Consumers need clear pricing and the ability to shop without unexpected costs that significantly raise total expenses.”
