The Federal Trade Commission (FTC) issued an Advance Notice of Proposed Rulemaking (ANPRM) on fee practices in “online food and grocery delivery services.” The ANPRM defines these services as those services that enable consumers to order food and beverage items from restaurants, grocery stores, and other retailers to be delivered to consumers’ homes, businesses, or other designated locations.
By seeking public comment, the FTC asks companies, consumers, and other stakeholders to submit input, data, and examples about current practices, including:
- Total Price. Do food delivery platforms clearly and conspicuously disclose the total price for food or grocery items ordered for local delivery or pickup?
- Fees and Charges. Do online food delivery platforms clearly and conspicuously disclose the existence, nature, purpose, refundability, or recipient of any fees, charges, or other costs for a delivery or pickup order?
- Variable or Contingent Fees. Do online food delivery platforms clearly and conspicuously disclose factors used to determine any fees, charges, or other costs that are variable or contingent on consumer selections, such as number or type of items bought or delivery location?
- Material Restrictions. Do online food delivery platforms clearly and conspicuously disclose whether fees, charges, or other costs are mandatory or optional, or any material restrictions, limitations, or restrictions that may result in additional charges or that may diminish the consumer’s use of the good or service?
- Price Differentials. Do online food delivery platforms clearly and conspicuously disclose whether the prices of items ordered are the same as, or different from, the prices of the same items offered in the store or restaurant?
- Personalized Pricing. Do online food delivery platforms clearly and conspicuously disclose whether the prices of items ordered are the same as, or different from, the prices of the same items offered to other consumers on the platform?
- Discounts or Promotions. Do online food delivery platforms clearly and conspicuously disclose material limitations, restrictions, or conditions on applicable discounts or promotions?
- Additional Payments. Do online food delivery platforms misrepresent that a consumer owes payments for any product or service that the consumer did not agree to buy?
- Unauthorized Billing. Do online food delivery platforms bill consumers for fees or charges, or for goods and services, without their express informed consent?
After the comment period closes, the FTC will review the submissions as it decides whether to propose a rule and what any such rule should cover.
The ANPRM follows the FTC’s broader work on fee disclosures and pricing practices and signals continued regulatory focus on price transparency, fee presentation, dark patterns, and personalized pricing.
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