Tired of a $20 takeout costing $45 by the time it makes it to your door? There's a bill for that.
The PRICE bill, specifically, aims to prevent surprise fees at checkout and empower consumers to make informed decisions while shopping on delivery apps. Currently, the bill is making its way through the state legislature in New York, with supporters hoping more states follow.
Politico noted that already in California, Georgia, Illinois, Colorado and New York, lawmakers have introduced bills to set rules around “surveillance pricing,” a "growing practice that worries consumer advocates due to potential unfairness and use of sensitive information."
In the case of PRICE, New York Rep. Dan Goldman is championing the Act -- which stands for Promoting Real-time Information on Cost Expenditure. It would require food and grocery delivery apps to disclose all fees upfront.
The legislation would apply to companies like DoorDash, Grubhub, and Uber Eats, with penalties for non-compliance enforced by the Federal Trade Commission.
It's being proposed following a Lending Tree study that found nearly 4 in 10 Americans get food delivered at least once a week. "And when they do, they’re likely to spend almost 80% more than if they picked it up from the restaurant themselves."
The PRICE Act would prohibit undeclared, mysterious fees and surveillance pricing, where companies use personal data to set customized prices, ensuring transparency and fairness for consumers.
Sen. Ben Ray Luján introduced a companion bill in the New York Senate, emphasizing the need for pricing transparency and protection against hidden fees for consumers. Many have noted on social media that some algorithms have them that being charged differently for the same meal at different times, depending on day of the week and how long they keep the item in their cart before finishing the order.
“Americans deserve to know what they’re paying for and shouldn’t be surprised by hidden fees,” the Lower Manhattan rep added. “The PRICE Act would ensure that delivery apps disclose all costs up front and explain any fees so that consumers can shop confidently without unexpected charges at checkout.”
In addition to requiring an “all-in” price for an order, companies would also have to give customers a clear breakdown justifying each of the fees.
As far as the fees people are paying now, Lending Tree found the highest markup for deliver in Atlanta, where "eaters can expect to pay 92.2% more when getting delivery — the highest in the nation and significantly higher than the 10-metro average of 79.5%. New York (89.1%) and Philadelphia (82.8%) have the next highest increases.
"Meanwhile, Houston has the smallest difference in cost between delivery and pickup at 67.0%. Miami (69.3%) and Chicago (71.8%) aren’t far behind."
Lending Tree delivery data
Lending Tree delivery data
