Food delivery apps would be barred from hiding fees, surveillance pricing under new federal bill

Representative Dan Goldman and Senator Ben Ray Luján have introduced the Promoting Real-time Information on Cost Expenditure (PRICE) Act to mandate pricing transparency across the food and grocery delivery industry. The bill requires platforms to disclose all fees upfront and provides the Federal Trade Commission with the authority to penalize companies for deceptive pricing practices. This legislative move aims to protect consumers from "junk fees" and the use of personal data to manipulate individual pricing, ensuring a more competitive and fair marketplace for delivery services.

The PRICE Act, championed by Representative Dan Goldman (D-NY), seeks to eliminate the "junk fees" that often surprise consumers at the final stage of checkout on food and grocery delivery apps. The legislation would require major platforms, including DoorDash, Grubhub, and Uber Eats, to provide an "all-in" price at the start of the ordering process, accompanied by a clear breakdown justifying each individual fee. Goldman noted that these hidden costs currently make it difficult for users to accurately comparison shop between different services, and the bill aims to ensure that consumers can shop confidently without unexpected charges inflating their totals.

A core pillar of the proposed law is the ban on "surveillance pricing," a controversial practice where companies use an individual's personal data—such as browsing history, location, device type, and likely income—to set personalized, often higher, prices. The legislation responds to reports of customers seeing prices increase after returning to a previously viewed order, a tactic criticized by the National Consumers League. By prohibiting the use of such data for customized pricing, the bill intends to protect all users, with Goldman specifically highlighting the potential negative impact of these practices on elderly consumers.

Enforcement of the PRICE Act would fall under the jurisdiction of the Federal Trade Commission (FTC), which would treat violations as unfair or deceptive acts. The FTC would be granted the discretion to determine the severity of penalties and the aggressiveness of its enforcement strategy. Senator Ben Ray Luján, who introduced the companion legislation in the Senate, stated that the bill is necessary because Americans are too often "caught off-guard" by costs that can be 80% higher than pickup orders. This legislative push reflects a growing federal focus on the pricing transparency of digital platforms that have become essential to the modern grocery and meal delivery sector.