Consumer Groups Urge FTC to Regulate Food Delivery Fees, Call for More Action to Fight Unlawful Pricing
Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829
Washington, DC – Today, the National Consumers League (NCL), the Electronic Privacy Information Center (EPIC), and five other public interest organizations filed a joint comment supporting Federal Trade Commission (FTC) action to prohibit hidden fees in food delivery services. The FTC’s pro-consumer effort would bring relief and clarity to shoppers who use food and grocery delivery apps, who (or many of whom) are often individuals with limited mobility or disabilities.
While supportive of the Commission’s rulemaking, NCL urged the agency to go after hidden fees in additional industries by expanding the scope of the regulation to apply economy-wide, rather than being specific to food delivery. The groups also urged the FTC to ban personalized pricing—a practice fueled by invasive data collection that preys on everyday Americans.
“There is a longstanding consensus that hidden fees harm consumers and violate the law. Americans now know that dynamic pricing is just as rotten, especially when it’s personalized to exactly how much businesses think they can squeeze from you,” said NCL Senior Public Policy Manager Eden Iscil. “We should not be subjected to a guessing game just to figure out the price of something. It’s important that the FTC works quickly to investigate and stop these unlawful business practices.”
Recently, the FTC also initiated a proceeding to address hidden fees in rental housing. In 2024, the Commission finalized a regulation to prohibit hidden fees in live-event ticketing and short-term lodging. NCL supports each of these rulemakings, but the FTC’s industry-by-industry approach will take several years to adequately address the breadth of fees plaguing the American economy—and risks excluding currently unforeseen industries’ use of hidden fees. A single, comprehensive regulation would more effectively protect consumers and preclude the practice from reappearing in the future.
NCL and EPIC’s joint comment received support from Consumer Action, the Consumer Federation of America, the Demand Progress Education Fund, the National Association of Consumer Advocates, and Travelers United.
The full comment can be found here.
Additional reading
- NCL Urges FTC To Revive Click To Cancel in New Proceeding
- NCL Condemns Illegal Firings of FTC Commissioners
- NCL Hails FTC Ban on Hidden Junk Fees in Ticketing and Lodging
###
About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.
