FTC Seeks Public Comment on Unfair and Deceptive Fee Practices in Online Food and Grocery Delivery Services

The Federal Trade Commission today announced it is seeking public comment on whether a rule is needed to address unfair or deceptive fee practices in connection with the services provided by online food and grocery delivery platforms nationwide.

As detailed in an Advance Notice of Proposed Rulemaking (ANPRM) to be published shortly in the Federal Register, the FTC is seeking written comments, including data, evidence, analyses, and arguments, to help determine how best to prevent unfair or deceptive acts or practices and to ensure that the agency addresses concerns from both consumers and industry.

“Online grocery fees that are unclear, inconsistently disclosed, or revealed only at the last moment before consumers make a purchase distort competition and harm consumers,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Clear and truthful pricing is essential to competitive markets. The Commission’s enforcement track record suggests that consumers continue to face a suite of fees that prevent them from making informed comparisons. The Trump-Vance FTC is committed to addressing unlawful grocery delivery pricing that obscures the true cost of groceries.”

Unfair or deceptive fee practices violate the FTC Act. The Commission recently brought several actions against online food delivery platforms for unfair or deceptive practices that violated the FTC Act. For example, in December 2025, the FTC announced a $60 million settlement with Instacart over allegations it falsely advertised “free delivery” on consumers’ first three orders on the platform and then charged them service fees that were not disclosed until checkout. And, in December 2024, the FTC obtained a $25 million settlement with GrubHub over allegations it misled consumers about the cost of delivery on its platform.

These cases illustrate that hidden and misleading fees and charges are a recurring problem related to online delivery platforms, despite enforcement actions to protect consumers’ interests. Also, while numerous states have recently adopted laws requiring food and grocery delivery platforms to more clearly disclose fees and include all mandatory fees in advertised prices, they have not adopted uniform rules that apply to all food delivery platforms across the country.

The ANPRM asks the public to comment on whether a rule is needed to prevent unfair or deceptive fee practices in connection with online food delivery services including:

• Total Price. Do food delivery platforms clearly and conspicuously disclose the total price for food or grocery items ordered for local delivery or pickup?
• Fees and Charges. Do online food delivery platforms clearly and conspicuously disclose the existence, nature, purpose, refundability, or recipient of any fees, charges, or other costs for a delivery or pickup order?
• Variable or Contingent Fees. Do online food delivery platforms clearly and conspicuously disclose factors used to determine any fees, charges, or other costs that are variable or contingent on consumer selections, such as number or type of items bought or delivery location?
• Material Restrictions. Do online food delivery platforms clearly and conspicuously disclose whether fees, charges, or other costs are mandatory or optional, or any material restrictions, limitations, or restrictions that may result in additional charges or that may diminish the consumer’s use of the good or service?
• Price Differentials. Do online food delivery platforms clearly and conspicuously disclose whether the prices of items ordered are the same as, or different from, the prices of the same items offered in the store or restaurant?
• Personalized Pricing. Do online food delivery platforms clearly and conspicuously disclose whether the prices of items ordered are the same as, or different from, the prices of the same items offered to other consumers on the platform?
• Discounts or Promotions. Do online food delivery platforms clearly and conspicuously disclose material limitations, restrictions, or conditions on applicable discounts or promotions?
• Additional Payments. Do online food delivery platforms misrepresent that a consumer owes payments for any product or service that the consumer did not agree to buy?
• Unauthorized Billing. Do online food delivery platforms bill consumers for fees or charges, or for goods and services, without their express informed consent?

The ANPRM announced today explores whether and how a nationwide rule would enhance consumer protections against unfair and deceptive fee practices in online food delivery services, as well as serve as a deterrent against those practices because it would allow the agency to seek civil penalties against violators and more easily obtain redress for harmed consumers.

Once the ANPRM has been published in the Federal Register, consumers will have 30 days to submit comments electronically. Consumers also may submit comments in writing by following the instructions in the “Supplementary Information” section of the Federal Register notice.