The Federal Trade Commission (FTC) announced it is seeking public comments to determine whether new rules are needed to address unfair or deceptive fee practices by online food and grocery delivery platforms nationwide. This initiative aims to protect consumers and promote clearer pricing transparency in the rapidly growing delivery sector.
The FTC released an Advance Notice of Proposed Rulemaking (ANPRM), inviting written submissions that include data, evidence, analyses, and arguments to guide the agency’s decision on regulatory measures. The ANPRM will soon appear in the Federal Register, providing a 30-day window for public comment.
Concerns Over Hidden and Misleading Delivery Fees
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the problem of fees that are unclear, inconsistently disclosed, or only revealed at checkout. He noted that such practices distort competition and harm consumers by preventing them from making informed purchasing decisions.
The FTC underscores that unfair or deceptive fee practices violate the FTC Act. The agency’s recent enforcement actions reflect ongoing challenges in the sector. For example, in December 2025, the FTC settled for $60 million with Instacart, which was accused of falsely advertising “free delivery” for first-time users while charging undisclosed service fees at checkout. Similarly, in December 2024, GrubHub settled for $25 million after allegedly misleading customers about delivery costs.
Despite these actions and some state laws requiring clearer fee disclosures, there is no uniform nationwide regulation applying to all food and grocery delivery platforms. The FTC aims to explore whether a federal rule can better ensure transparent pricing and fair competition.
Key Areas for Public Comment
The ANPRM asks for input on several specific issues related to fee transparency and disclosure, including:
- Whether total prices, including fees, are clearly and conspicuously disclosed to consumers before purchase.
- Disclosure of the nature, purpose, refundability, and recipients of fees or charges for delivery or pickup orders.
- Clear communication about variable or contingent fees based on order specifics, such as the number of items or delivery location.
- Information about whether fees are mandatory or optional and any restrictions that could cause additional charges.
- Whether prices on delivery platforms differ from those in physical stores or vary among consumers via personalized pricing.
- Transparency regarding material limitations on discounts or promotions.
- Whether platforms misrepresent payment obligations or bill consumers without informed consent.
The FTC is also considering how a rule would enable the agency to enforce penalties for violations and provide redress for consumers harmed by deceptive fee practices.
Why it matters
With the growing reliance on online food and grocery delivery, opaque pricing models can lead to consumer confusion, hidden costs, and unfair competition. A clear, enforceable federal rule could improve marketplace transparency and hold delivery services accountable for their fee disclosures, benefiting both consumers and honest businesses.
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Sources
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