Regulators are beginning to look closely at the hidden fees associated with online food orders!
The U.S. Federal Trade Commission has taken the first step toward examining the fees charged by online food delivery platforms. Last week, the FTC submitted a draft Advance Notice of Proposed Rulemaking to the Office of Management and Budget for review.
The FTC wants to explore whether online food delivery platforms are using fee structures that are confusing or misleading for consumers, potentially breaking consumer laws. The FTC is asking questions about how total prices are displayed and whether service charges, delivery fees, and other costs are clearly explained before someone places an order.
Recent enforcement actions suggest regulators believe hidden or poorly disclosed fees remain a recurring issue in online delivery markets. For now, the proposal is still under regulatory review, but we can already see that pricing practices of online delivery platforms are moving closer to the regulatory spotlight.
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Apr 14
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