“To require third-party delivery platforms to follow certain pricing practices, and for other purposes.”
No CRS summary available for this bill.
This section establishes definitions for purposes of the Act, including (1) "Commission" as the Federal Trade Commission; (2) "delivery fee" as any fee imposed by a third-party delivery platform on a user for an order in addition to charges the retail establishment would impose for in-person purchases (or menu/retail prices for establishments without in-person sales); (3) "retail establishment" as a physical establishment, including a restaurant, offering items for sale to individuals present in the establishment or ordering via a third-party delivery platform; and (4) "third-party delivery platform" as a website, mobile application, or internet service primarily offering or arranging same-day delivery of items from a retail establishment not owned by, under common ownership with, operated by, or a subsidiary of the platform.
This section establishes pricing requirements for third-party delivery platforms (i.e., online services facilitating orders from retail establishments such as restaurants), making noncompliance unlawful beginning 90 days after enactment of this Act. The requirements are as follows: (1) delivery fees must be calculated via a fixed methodology set no later than retail establishment selection—based solely on the retail price of ordered items (excluding taxes and platform fees) and delivery factors such as distance, but excluding user characteristics or proxies therefor (e.g., price sensitivity) or platform-retail arrangements; (2) item selection screens must prominently display the retail price (excluding taxes) and any applicable delivery fees; (3) ordering screens must prominently display the running total, including item costs, taxes, and fees; and (4) prior to payment, platforms must clearly explain each delivery fee, including its amount, purpose, related item, refundability, and other Commission-specified details. This section does not restrict user gratuities.
This section establishes Federal Trade Commission (FTC) enforcement of the Act by treating violations as unfair or deceptive acts or practices under the FTC Act (15 U.S.C. 57a(a)(1)(B)), granting the FTC the same powers, jurisdiction, duties, penalties, privileges, and immunities as under the FTC Act (15 U.S.C. 41 et seq.), and directing the FTC to promulgate necessary regulations under the Administrative Procedure Act (5 U.S.C. 553). The section further authorizes state attorneys general to bring civil actions in federal or state court to enjoin violations, enforce compliance, obtain damages or restitution for state residents, or secure other appropriate relief—subject to prior written notice to the FTC (or simultaneous notice if infeasible), with FTC intervention rights; preserves state investigative powers; prohibits parallel state actions during FTC proceedings against the same defendant; and specifies venue and service of process rules.