Food and grocery delivery apps would be required to provide users with all fees up front and be barred from surveillance pricing under a new bill championed by Rep. Dan Goldman.
Goldman (D-NY) argues that the Promoting Real-time Information on Cost Expenditure (PRICE) Act would make it easier for consumers to comparison shop between the top apps.
“As anyone who has ordered food or grocery delivery lately knows – too often delivery apps surprise us with junk fees at checkout that inflate the total cost,” Goldman argued.
“Americans deserve to know what they’re paying for and shouldn’t be surprised by hidden fees,” the Lower Manhattan rep added. “The PRICE Act would ensure that delivery apps disclose all costs up front and explain any fees so that consumers can shop confidently without unexpected charges at checkout.”
This would apply to companies like DoorDash, Grubhub and Uber Eats.
Should the bill become law, food delivery companies that flout the policy will be subject to penalties for unfair or deceptive acts from the Federal Trade Commission.
The FTC would be the main enforcer of the policy and would be given discretion to determine how aggressively to enforce it.
In addition to requiring an “all-in” price for an order, companies would also have to give customers a clear breakdown justifying each of the fees.
One inspiration for the legislation was a study that found American consumers pony up 80% more on food delivery orders compared to picking up orders on their own.
That finding raised concerns about surveillance pricing, a practice by which companies leverage an individual’s data, such as their browsing history, likely income, and location, to set personalized pricing.
Sometimes this entails customers checking out a possible order and then returning to see the price going up.
Those practices have long been subject to criticism from groups such as the National Consumers League.
Under the bill, companies can’t use user browsing history, device type, shopping habits, location data and more to set customized prices for users.
Goldman raised concerns about the impact it has on elderly consumers.
Sen. Ben Ray Luján (D-NY) unveiled the companion legislation in the Senate.
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“Far too often, Americans are caught off-guard by high costs at checkout because of hidden fees that delivery apps fail to disclose upfront,” Luján said in a statement.
“Consumers deserve transparency on pricing and the ability to shop without hidden fees that drastically inflate their total costs.”
