PRICE Act

The PRICE Act requires third-party delivery platforms to follow specific pricing practices to ensure transparency for users. It defines key terms, sets pricing requirements, and establishes enforcement mechanisms by the Federal Trade Commission and State Attorneys General.

Sec. 2, Definitions: The bill defines the Federal Trade Commission as the enforcing agency, a delivery fee as any extra charge by a platform beyond the retail establishment's price, a retail establishment as a physical store or restaurant selling items, and a third-party delivery platform as a website or app that primarily arranges same-day delivery from a retail establishment not owned by it.

Sec. 3, Pricing requirements for third-party delivery platforms: Starting 90 days after enactment, platforms must calculate delivery fees using a fixed methodology set when the user selects the retail establishment, based only on the item price (excluding taxes and platform fees) and delivery factors like distance, not user characteristics or platform-retailer agreements. Platforms must display the retail price and any delivery fees when an item is selected, show the ongoing total cost throughout ordering, and before payment, provide a clear explanation of each delivery fee including amount, related item or service, refundability, and other FTC-specified info. This section does not prevent adding gratuities.

Sec. 4, Enforcement: The FTC enforces this Act as an unfair or deceptive act, with powers under the FTC Act, and must issue necessary regulations. State Attorneys General can sue in federal or state court to enjoin violations, enforce compliance, or obtain damages for residents, after notifying the FTC. The FTC can intervene in such suits. No state can sue if the FTC has already sued the same defendant for the same violation. Venue is in federal district court or state court, and service of process is allowed wherever the defendant lives or can be found.