Wyden, Colleagues Demand Action on Hidden Price-Gouging Delivery Fees

Wyden, Colleagues Demand Action on Hidden Price-Gouging Delivery Fees

Senators: "At a time when the cost of living is at the forefront of everyone's minds, these delivery app fees are nothing more than a greedy assault on consumers' pocketbooks."

Washington, D.C. - U.S. Senator Ron Wyden said today he has joined Senate colleagues to call on the Federal Trade Commission (FTC) to act swiftly to stop food and grocery delivery apps from using deceptive fees, surveillance pricing, and anti-consumer marketing tactics that drive up costs for consumers.

The senators' demand comes as the FTC is considering a rule to address these deceptive fees.

"For millions of Americans, including busy parents and people with mobility issues, food delivery is a lifeline, not a luxury. However, delivery apps are taking advantage of consumers by slapping on unexplained and misleading fees that lead to exorbitantly higher prices," the senators wrote in their letter to FTC Chair Andrew Ferguson. "Delivery apps such as Uber Eats and DoorDash justify these additional charges under the pretext of long-distance deliveries, small orders, priority or express deliveries, and 'regulatory compliance.' To further obscure these fees, delivery apps often lump costs together and hide fees during the checkout process."

The senators continued, "Price gouging through hidden fees and markups clearly falls within the Commission's purview of combating unfair and deceptive acts and practices… The Commission's recent advance notice of proposed rulemaking (ANPRM) on delivery app fees presents the perfect opportunity to close this gap."

"At a time when the cost of living is at the forefront of everyone's minds, these delivery app fees are nothing more than a greedy assault on consumers' pocketbooks. As such, we encourage the Commission to proceed with this rulemaking and pursue enforcement against deceptive hidden fees, surveillance pricing, and markups related to food and grocery deliveries," the senators concluded.

The letter was led by U.S. Senator Richard Blumenthal, D-Conn. In addition to Wyden, the letter was signed by U.S. Senator Ben Ray Luján, D-N.M.

The full text of the letter is here.