Luján Introduces Legislation to Require Transparency on Third-Party Delivery Apps
Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), a member of the Senate Committee on Commerce, Science, and Transportation, introduced the Promoting Real-time Information on Cost Expenditure (PRICE) Act, legislation to provide consumers more clarity on delivery app pricing. When shopping with a delivery app for meal delivery, groceries, or other products, many companies apply surprise delivery fees and service charges at check out that significantly inflate the total cost. This hurts consumers by making it easier for them to overspend their budgets and virtually impossible to comparison shop while hindering competitive markets.
The PRICE Act requires delivery apps to show consumers the total running “all in” price of their order when they add items to their shopping carts. It also requires that the apps include, prior to check-out, a breakdown that prominently displays the ongoing total purchase amount and the fee breakdown with explanations of the fees. Earlier this year, Luján wrote a letter to CEOs of Grubhub, Uber Eats, and Doordash urging for more transparency on junk fees, a misleading and harmful price gouging practice directed at consumers and small businesses.
“Too often, delivery apps surprise Americans with the total cost of their orders because of hidden fees. For some, a delivered meal is their only option and consumers shouldn’t be surprised with back end fees that force them to spend past their budgets while limiting economic competition,” said Luján. “I’m introducing the PRICE Act because Americans deserve more clarity on pricing when adding items to their shopping carts. This legislation requires companies to clearly display the all-in price so consumers can shop with confidence and not be surprised by junk fees that drastically inflate the total costs.”
“Consumers should be able to easily understand the additional costs of using a delivery app compared to buying directly from a retailer. Consumers also deserve to know what they are paying for — be it a commission, delivery fees, or a tip — and who they’re paying it to. Senator Luján’s bill does this and will allow consumers to make informed choices about whether and how to utilize these services,” said Sumit Sharma, Senior Researcher, Competition, Consumer Reports.
“Delivery apps should compete on who can offer the best service at the lowest price, not who is better at hiding their junk fees,” said National Consumers League’s Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “This bill would provide much-needed transparency for the millions of consumers who depend on delivery apps to provide food, health products and other everyday necessities.”
Full text of the legislation is available HERE.