This bill, the PRICE Act, mandates transparent and standardized pricing practices for third-party delivery platforms, regulating how delivery fees are calculated and displayed to consumers.
Dan Goldman
Representative
NY-10
This bill, the PRICE Act, establishes new transparency and fairness requirements for third-party delivery platforms regarding how they calculate and display fees. It mandates that delivery fees must be based only on the order total and delivery factors, not on user characteristics or store negotiations. The legislation ensures users see clear breakdowns of item prices and fees before payment, with enforcement handled by the Federal Trade Commission and state attorneys general.
New 'PRICE Act' Mandates Transparent Delivery Fees, Bans Personalized Pricing
Ever felt like your delivery app was playing games with how much it charges you for that late-night pizza? Well, get ready for some changes. A new bill, aptly named the Promoting Real-time Information on Cost Expenditure Act (or the PRICE Act), is stepping in to make sure those delivery fees are as clear as day and, more importantly, fair.
No More Guessing Games on Delivery Fees
Starting 90 days after this bill becomes law, third-party delivery platforms—think your go-to food or grocery delivery apps—will have to change how they calculate and display those pesky delivery fees. The big takeaway here is that platforms can no longer base your delivery fee on who you are. That means no more algorithms trying to figure out your 'inferred price sensitivity' or 'prior purchasing behavior' to hike up the cost. Instead, fees will have to be based on straightforward stuff like the total price of your order (before taxes and platform fees) and how far the delivery driver has to go. This is a game-changer for anyone who's suspected they were paying more just because the app thought they would.
What You See Is What You Get (Finally!)
One of the most frustrating things about online ordering can be the sticker shock at checkout. This bill tackles that head-on. Under the PRICE Act, when you’re building your order, the platform must clearly show you the actual price the store charges for each item, plus any delivery fees tied to it. Even better, you’ll see a running total of your order, including all taxes and fees, throughout the entire process. No more surprises when you hit the 'pay now' button. Before you finalize your purchase, the app will also need to give you a clear, easy-to-understand explanation of every single delivery fee, including whether it’s refundable. This is a huge win for transparency, making sure you know exactly what you’re paying for before you commit.
Who's Keeping Tabs?
So, who's going to make sure these big delivery platforms play by the new rules? The Federal Trade Commission (FTC) will be leading the charge, treating any violations as unfair or deceptive trade practices. This means they’ll use their existing powers to enforce the Act, including levying penalties. But it’s not just the feds; state attorneys general can also step in. If they see a platform harming residents in their state, they can file lawsuits to stop the practice and even get compensation for affected consumers. This dual enforcement mechanism provides a strong safety net, ensuring that these new protections are actually put into practice.