WASHINGTON (KAMR/KCIT) — On Monday, Senator Ben Ray Luján (D-N.M.) introduced legislation that was aimed at third-party delivery app pricing for apps used for meal delivery, groceries and other products.
The Promoting Real-time Information on Cost Expenditure (PRICE) Act is aimed at providing 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,” according to a news release from the office of Senator Luján.
The PRICE Act would look to require that delivery apps show customers the total running “all in” price of their order when items are added to their shopping cart. The Act would also require 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.”
“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.
A letter Luján wrote to CEOs of Grubhub, Uber Eats and Doordash can be found here.
The full text of the legislation can be found here.