Promoting Real-time Pricing Transparency

Full Title:
PRICE Act

Summary#

The PRICE Act would require third-party delivery platforms (apps or websites that primarily arrange same-day delivery from restaurants or other retail places not owned by the platform) to follow specific pricing and display rules. Platforms must set a delivery-fee calculation method no later than when a user selects a retail establishment and may not change the method after the user begins the order. Delivery fees must be based only on the retail price of items ordered (excluding taxes and platform fees) and other delivery-related factors such as distance. Platforms may not base delivery fees on factors that rely on or proxy for user characteristics (for example, inferred price sensitivity or past purchases) or on arrangements between the platform and the retail establishment. Platforms must prominently show the retail price (excluding taxes) and any delivery fees when a user selects an item, show a running total that includes item costs, taxes, and fees throughout the ordering process, and provide a clear explanation before payment of each delivery fee, the item it relates to, the amount, and whether it is refundable. The bill clarifies platforms may still let users add gratuities. The Federal Trade Commission (FTC) would enforce the Act as an unfair or deceptive practice and must write regulations; state attorneys general may also bring civil actions.

What it means for you#

  • If you use delivery apps, you should see retail item prices and any platform delivery fees displayed clearly when you pick items, a running total as you order, and a clear explanation of delivery fees before you pay.
  • Platforms must lock in the method they use to calculate delivery fees when you pick a restaurant and cannot change that method mid-order.
  • Platforms are prohibited from calculating delivery fees using factors tied to a user’s inferred traits or to deals with the restaurant.

Expenses#

No publicly available information on the bill's costs, budgetary effects, or fiscal impact. The bill assigns enforcement responsibilities to the Federal Trade Commission (including rulemaking under section 553 of title 5) and allows state attorneys general to bring civil actions, which could have enforcement-related costs but none are specified in the text provided.

Proponents' View#

The bill's title (“Promoting Real-time Information on Cost Expenditure”) and its requirements indicate proponents aim to increase price transparency for users and to prevent platforms from using user characteristics or private platform–retailer arrangements to set delivery fees. The bill gives the FTC rulemaking and enforcement authority to carry out those aims.

Opponents' View#

No publicly available information in the provided text about opponents' views or objections to the bill.