ATLANTA — The federal government is cracking down on hidden or confusing fees when you order food or groceries through delivery apps.
A 47-page Advanced Notice of Proposed Rulemaking filed by the Federal Trade Commission details concerns with additional fees being charged despite claims of “free delivery.”
“While platforms may purport to offer ‘free delivery’ or ‘$0 delivery,’ they often tack on non-optional charges for delivery orders such as ‘service fees,’” the notice read in part.
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Channel 2 Consumer Investigator Justin Gray went through the filing and learned the FTC is asking for public comments on delivery fees, which is the first step to making new rules.
“I bought something recently, and it was like $100, and it’s only eight items,” shopper Lorraine Anderson said.
The FTC says that oftentimes, consumers don’t even know the total price until the very end of the transaction.
“Sometimes you’ll calculate it, and then it’s like, this burger cost $10. Why are all of my service fees and charges $20?” questioned shopper Native Ervin.
Not only can these fees be expensive, but they can also be difficult to understand.
“These kinds of affordability issues, these kitchen table issues are top of mind for the Federal Trade Commission, and are one of the areas I think we spend the most time thinking about and worrying about,” FTC Commissioner Mark Meador testified.
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“Consumers like transparency, and with the high cost of everything, we need some regulations to help bring these costs down,” Ervin said.
The FTC says it is concerned about hidden or unclear fees, unfair pricing, higher prices shown for delivery than in store and even surveillance pricing.
Specifics on what a rule, if approved, would look like have not been released.
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