The Promoting Real-time Information on Cost Expenditure Act, or PRICE Act, establishes new pricing requirements for third-party delivery platforms. It defines a delivery fee as any charge imposed by a platform beyond the retail establishment's item price, and a third-party delivery platform as an internet service primarily offering or arranging same-day delivery from independent retail establishments. Under this Act, delivery fees must be determined when a user selects a retail establishment and cannot change. These fees must be based solely on the total price of items ordered and factors related to delivery, such as delivery distance . Crucially, fees cannot rely on or incorporate variables related to user characteristics like inferred price sensitivity, prior purchasing behavior, or willingness to pay, nor can they be based on arrangements negotiated between the platform and the retail establishment. Platforms are required to prominently display the price of each item and any applicable delivery fees when a user selects an item. Throughout the ordering process, a continuous total amount, including item costs, taxes, and fees, must be shown. Before payment, a clear, conspicuous, and non-misleading explanation of each delivery fee, its amount, purpose, and refundability must be provided to the user. The Federal Trade Commission (FTC) is empowered to enforce violations of this Act as unfair or deceptive acts or practices , including promulgating necessary regulations. Additionally, State Attorneys General can bring civil actions on behalf of their residents to enjoin practices, enforce compliance, or obtain damages, with a requirement to notify the FTC before filing, allowing the FTC to intervene.
The Promoting Real-time Information on Cost Expenditure Act, or PRICE Act, establishes new pricing requirements for third-party delivery platforms. It defines a delivery fee as any charge imposed by a platform beyond the retail establishment's item price, and a third-party delivery platform as an internet service primarily offering or arranging same-day delivery from independent retail establishments. Under this Act, delivery fees must be determined when a user selects a retail establishment and cannot change. These fees must be based solely on the total price of items ordered and factors related to delivery, such as delivery distance . Crucially, fees cannot rely on or incorporate variables related to user characteristics like inferred price sensitivity, prior purchasing behavior, or willingness to pay, nor can they be based on arrangements negotiated between the platform and the retail establishment. Platforms are required to prominently display the price of each item and any applicable delivery fees when a user selects an item. Throughout the ordering process, a continuous total amount, including item costs, taxes, and fees, must be shown. Before payment, a clear, conspicuous, and non-misleading explanation of each delivery fee, its amount, purpose, and refundability must be provided to the user. The Federal Trade Commission (FTC) is empowered to enforce violations of this Act as unfair or deceptive acts or practices , including promulgating necessary regulations. Additionally, State Attorneys General can bring civil actions on behalf of their residents to enjoin practices, enforce compliance, or obtain damages, with a requirement to notify the FTC before filing, allowing the FTC to intervene.