U.S. SENATE News:

WASHINGTON, D.C. — U.S. Sens. Ben Ray Luján (D-N.M.), Richard Blumenthal (D-CT), and Ron Wyden (D-OR) called on the Federal Trade Commission (FTC) to take swift action to stop food and grocery delivery apps from using deceptive fees, surveillance pricing, and anti-consumer marketing tactics. The FTC is currently considering a rule to address these deceptive fees. In a letter sent to FTC Chair Andrew Ferguson, Luján, Blumenthal, and Wyden called on the Commission to proceed with the rulemaking and pursue enforcement to protect consumers from these predatory practices.

“For millions of Americans, including busy parents and people with mobility issues, food delivery is a lifeline, not a luxury. However, delivery apps are taking advantage of consumers by slapping on unexplained and misleading fees that lead to exorbitantly higher prices. Delivery apps such as Uber Eats and DoorDash justify these additional charges under the pretext of long-distance deliveries, small orders, priority or express deliveries, and ‘regulatory compliance.’ To further obscure these fees, delivery apps often lump costs together and hide fees during the checkout process,” the Senators wrote.

The Senators continued, “Price gouging through hidden fees and markups clearly falls within the Commission’s purview of combating unfair and deceptive acts and practices…The Commission’s recent advance notice of proposed rulemaking (ANPRM) on delivery app fees presents the perfect opportunity to close this gap.”

“At a time when the cost of living is at the forefront of everyone’s minds, these delivery app fees are nothing more than a greedy assault on consumers’ pocketbooks. As such, we encourage the Commission to proceed with this rulemaking and pursue enforcement against deceptive hidden fees, surveillance pricing, and markups related to food and grocery deliveries,” the Senators concluded.

The full text of the Senators’ letter is available here.