Sara Amare
Associate editor
Loyola University Chicago School of Law. JD 2028
On April 16, 2026, the Federal Trade Commission (FTC) proposed creating a rule to address unfair or deceptive fee-charging practices for items ordered off online food delivery platforms. After its announcement, the FTC sought comments from the public to determine the need for a rule to address these practices. At the conclusion of the comment period on May 18, 2026, the FTC received 438 submissions. Some consumers commented that they believed online food delivery platforms were charging exorbitant hidden fees, in some cases doubling the cost of their order, and they desired transparent pricing. By proposing a nationwide rule to address unfair pricing practices of online food delivery platforms, the FTC will be able to provide clear, necessary guidelines for these platforms to operate by in every state.
What are these charges for?
Over the past decade, use of online food delivery platforms has increased significantly, but so have consumer complaints. One study revealed that, depending on the platform used, consumers pay about 80% more to have food delivered from a restaurant than if they had picked it up themselves. Similarly, a 2025 study showed that ordering groceries from an online food delivery platform, rather than shopping in store, resulted in 30-50% higher costs.
One factor contributing to the drastic increase in prices found on online platforms is higher delivery fees. Even worse, these fees are often not disclosed, and if they are, it’s not until checkout. This leaves consumers feeling bamboozled and with only two options: delete their order completely, or pay costs that substantially exceed the amount they expected to pay. Either way, this process discourages an individual from placing a future online order.
Holding Online Food Delivery Platforms Accountable
Unfair pricing practices have already been addressed by the FTC through enforcement actions against individual online food delivery platforms. Previously, the FTC brought an enforcement action against Grubhub for violating section 5 of the Federal Trade Commission Act (FTC Act). Section 5 of the FTC Act is violated by unfair or deceptive business practices that affect commerce. Grubhub advertised low or no delivery fees but subsequently charged consumers other undisclosed fees that substantially increased the price.
Additionally, some states have taken action into their own hands by enacting fee disclosure requirements. For instance, Minnesota’s Deceptive Trade Practices Act requires the price advertised on an online food delivery platform to include all mandatory fees and surcharges. The law also imposes upfront fee disclosure requirements on third-party delivery platforms, meaning these platforms are required to conspicuously display any flat fee or percentage charged for delivery when a consumer selects an item for purchase and again before checkout.
Similarly, in 2025, Virigina made amendments to its Fair Food Delivery Act to require online food delivery platforms to clearly disclose additional fees or percentage charges. Prior to checkout, the delivery platform must now display a subtotal page itemizing the price of the items a consumer chooses as well as any additional fees or percentages included in the total cost.
What Would a Rule Accomplish?
Although the FTC has attempted to prevent the use of unfair pricing practices, its remedial authority under current law is limited. Moreover, these practices still continue. The FTC believes establishing a rule to reprimand the use of unfair pricing practices with civil penalties would deter online food delivery platforms. Additionally, they believe this enactment would allow consumers to more easily obtain relief and provide online food delivery platforms with clear fee transparency guidelines for every state.
FTC Should Proceed with Rulemaking
While the FTC has brought individual enforcement actions for unfair pricing practices, the problem persists. Given that multiple states have enacted legislation to address these pricing practices and the public commentary received by the FTC, it’s evident consumers are concerned with the pricing on online food delivery platforms. A nationwide rule could establish clear standards for online food delivery platforms and ensure consumers in each state receive the same level of protection against unfair pricing practices. Additionally, a nationwide rule could bolster consumers’ informed decision making, ensuring they have all the necessary information related to pricing before checkout. Section 18 of the FTC Act gives the FTC the authority to create rules that address unfair or deceptive pricing practices. Thus, the FTC should enact a nationwide rule to address the unfair pricing practices of online food delivery platforms.