Doordash, Instacart Face Critical FTC Fight over Consumer Fees

Ordering through platforms like DoorDash or Uber Eats costs nearly 80% more on average than picking up, a LendingTree study found. Service fees, delivery charges, and inflated menu prices all add up on the final bill, often without a clear explanation of where each dollar

Ordering through platforms like DoorDash or Uber Eats costs nearly 80% more on average than picking up, a LendingTree study found.

Service fees, delivery charges, and inflated menu prices all add up on the final bill, often without a clear explanation of where each dollar goes

The Federal Trade Commission opened a preliminary rulemaking process in April, asking whether new federal rules should target fee practices in food and grocery delivery. Hundreds of stakeholder comments flooded in before a May 18 deadline, revealing a fierce divide between delivery platforms and the restaurants demanding transparency. The outcome could determine whether delivery orders show the full price upfront or continue adding fees at checkout.

The FTC puts delivery app pricing under the microscope The rulemaking targets whether delivery apps engage in “unfair or deceptive” fee practices, the same legal framework the agency used against ticketing platforms. Drip pricing involves gradually revealing fees throughout the checkout process, and the FTC noted that some studies report total delivery costs running 25% to over 90% higher than picking up the same order, the Federal Register filing stated. That tactic targets shoppers who have already spent time choosing their food and are far less likely to walk away once the inflated total appears. “Clear and truthful pricing is essential to competitive markets,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said in the announcement.

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