H.R. 8510: Promoting Real-time Information on Cost Expenditure Act

This bill, known as the Promoting Real-time Information on Cost Expenditure Act or PRICE Act, aims to regulate third-party delivery platforms that facilitate the delivery of items from retail establishments, particularly focusing on how they charge for delivery services. The key points of the bill are as follows:

Definitions

• Commission: Refers to the Federal Trade Commission (FTC).
• Delivery fee: Any added charge imposed by a third-party delivery platform on users for orders placed through the platform.
• Retail establishment: Physical locations (like restaurants) that sell items either to individuals present on-site or through the delivery platform.
• Third-party delivery platform: Any online service, such as a website or app, that mainly provides same-day delivery from retail stores and is not owned by or affiliated with those stores.

Pricing Requirements

The bill outlines specific pricing rules for third-party delivery platforms that will take effect 90 days after the bill becomes law:

• If a delivery platform charges delivery fees, these must be calculated and disclosed to users when they select the retail establishment and must not change throughout the ordering process.
• The delivery fee can only be based on the total price charged by the retail establishment, excluding any platform-imposed fees or taxes, and factors directly related to the delivery such as distance.
• Delivery platforms must display the retail price of each item prominently, along with any applicable delivery fees during the ordering process.
• The total cost to the user, including all items, taxes, and fees, must be clearly displayed throughout the ordering process.
• Before seeking payment, the platform must provide a clear explanation of each delivery fee, including details on item relevance, refund policies, and other information as specified by the FTC.

Gratuities

The bill clarifies that it does not prevent third-party delivery platforms from allowing users to tip delivery personnel if they choose to do so.

Enforcement

Enforcement mechanisms are detailed as follows:

• The FTC is authorized to enforce this bill as if it were part of the Federal Trade Commission Act, meaning violations can be treated as unfair or deceptive practices.
• The FTC will have the authority to create regulations necessary for the implementation of the bill.
• State attorneys general can also bring civil actions against violators to protect the interests of state residents, seeking injunctions, damages, and other forms of relief.
• States must notify the FTC before filing actions but can bypass this requirement if deemed not feasible.

Relevant Companies

• GRUB (Grubhub) - As a major third-party delivery service, Grubhub would need to adjust its pricing and disclosure practices to comply with the new regulations.
• DASH (DoorDash) - This company would also be affected by the requirements to clearly display fees and establish a transparent pricing model in accordance with the bill.