End Hidden Fees on Delivery Apps

Summary#

• The PRICE Act sets rules for how third-party delivery apps and websites show prices and charge delivery fees.

• Its main goal is to make costs clear and to stop delivery fees that change based on who you are or your past shopping behavior.

• Key changes:

  • Delivery fees must be set using a fixed method once you pick a store or restaurant and cannot change while you build your order.
  • Delivery fees can be based only on the order’s item prices and delivery-related factors (like distance). They cannot be based on your profile, purchase history, or “willingness to pay,” and cannot depend on deals the app has with the store.
  • Each item must show the store’s price, and the app must show any delivery fees tied to that item.
  • A running total—items, taxes, and all fees—must be visible throughout checkout.
  • Before you pay, the app must explain each delivery fee, what it covers, the amount, which item it relates to, and whether it’s refundable.
  • Tips are still allowed.
  • The Federal Trade Commission (FTC) and state attorneys general can enforce these rules. The rules would start 90 days after the bill becomes law.

What it means for you#

• Consumers

  • You see the store’s price for each item and any delivery fees as you add items.
  • You get a clear, running total with all items, taxes, and fees before you pay.
  • The app must explain every delivery fee in plain language, including what it’s for and if it’s refundable.
  • Your delivery fee cannot be higher because of who you are, what you bought before, or what the app thinks you will pay.
  • Once you pick a store, the way your delivery fee is calculated cannot change mid-order.
  • You can still leave a tip.

• Restaurant and retail customers (ordering through apps)

  • Easier to compare total costs across apps and stores before you place an order.
  • Fewer surprises from late-added or shifting fees.

• Restaurants and retailers

  • Your item prices must be shown clearly on the platform.
  • Platforms cannot set a customer’s delivery fee based on the platform’s private deal with your business.
  • You may get questions from customers about how fees are explained, since platforms must break them out.

• Delivery platforms (apps and websites)

  • Must update pricing systems to remove user-based or deal-based delivery-fee factors and lock fee methods once a store is selected.
  • Must display item prices, delivery fees, and a live total throughout checkout.
  • Must provide clear fee explanations before payment.
  • Must comply within 90 days of the law taking effect and with any future FTC rules.

• Delivery workers

  • No direct changes to pay in the bill. Tips remain allowed.

Expenses#

• No publicly available information.

Proponents' View#

• Makes prices clear up front and reduces “junk fee” surprises at checkout.
• Stops apps from charging different delivery fees based on who the customer is or their past behavior, which supporters say is fairer.
• Prevents “bait-and-switch” fee changes once a shopper starts an order.
• Helps people compare total costs across apps and restaurants more easily.
• Uses the FTC and state attorneys general to ensure strong enforcement.

Opponents' View#

• Limits dynamic pricing tools and targeted offers, which could reduce flexibility for apps and merchants.
• Compliance work (new algorithms, displays, and disclosures) could raise operating costs that might be passed on to users.
• Requiring item-level fee displays and lengthy explanations could clutter apps and confuse users.
• Barring fee methods tied to platform–merchant deals may disrupt arrangements that sometimes subsidize delivery.
• The 90-day timeline may be too short for large technical and policy changes, raising risk of mistakes or lawsuits.