N.C. attorney general urges FTC on delivery fees

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Summary

Jeff Jackson joined a bipartisan push for FTC rules requiring upfront disclosure of food delivery app fees and markups.

Why this matters

The request could affect how food and grocery delivery apps display prices and fees to consumers. If regulators act, customers may be able to compare full costs earlier in the ordering process.

North Carolina Attorney General Jeff Jackson said May 27 that he signed a bipartisan letter urging the Federal Trade Commission to address pricing practices on food and grocery delivery apps.

The request followed the FTC’s April call for public input on possible new rules for delivery charges. In the letter, the attorneys general said platforms should show customers the full price at the start of an order and throughout checkout, rather than disclosing the total only at the end.

The coalition also asked the FTC to require apps to list each fee and explain how charges are calculated. It also urged the agency to require disclosure when menu prices on an app are higher than prices in stores or at restaurants.

The attorneys general also raised concerns that some platforms could use customer data to vary prices among users.

Food delivery apps have become a regular way for many households to order restaurant meals and groceries, including for older adults and people with limited mobility. The attorneys general said added fees and higher menu prices can increase costs for consumers.

Their recommendations focused on three steps: showing the full price early, explaining added fees, and flagging when app prices exceed in-person prices.

It was unclear whether the FTC would adopt the proposed rules.

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