Advocacy Update l FTC Takes Closer Look at Third-Party Delivery Platform Fees

What's Happening: 
On April 14, the Federal Trade Commission (FTC) launched an information request seeking data and public comment on fee practices used by online food delivery platforms, including third‑party delivery apps.

• What this is: A fact‑gathering effort that may lead the FTC to propose a federal rule affecting how fees are disclosed on online delivery platforms.
• What this isn’t: This action does not target restaurant‑set fees like credit card surcharges or service charges.

Why it Matters: 
This could be the first step toward a new federal rule aimed at addressing what the FTC describes as potentially “hidden or misleading” fees charged to consumers on delivery platforms.

The Backdrop:
The FTC’s move follows major enforcement actions over so‑called “drip pricing” where an initial price is advertised before a consumer can understand the total price which eventually includes fees. While some states have enacted laws to improve fee transparency on delivery platforms, the FTC is considering whether a nationwide rule would be favorable.

What’s Next: 
Comments are due May 18.