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 outlines enforcement by the Federal Trade Commission and State Attorneys General.

Sec. 2, Definitions: Defines "Commission" as the Federal Trade Commission. "Delivery fee" is any fee added by a third-party delivery platform beyond what a retail establishment would charge for in-person purchases. "Retail establishment" means a physical store or restaurant selling items in-person or through a delivery platform. "Third-party delivery platform" is a website, app, or internet service primarily offering same-day delivery from a retail establishment, not owned by that establishment.

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

Sec. 4, Enforcement: Violations are treated as unfair or deceptive acts under the Federal Trade Commission Act. The FTC enforces this Act with its usual powers, can issue regulations, and retains other legal authority. State Attorneys General can sue in federal or state court to enjoin violations, enforce compliance, or obtain damages for state residents, after notifying the FTC (with exceptions for feasibility). The FTC can intervene in such state actions. States cannot sue if the FTC is already suing the same defendant for the same violation. Venue is in federal district court or state court, and service of process can be wherever the defendant lives or does business.