DoorDash, Instacart face FTC scrutiny over hidden delivery fees
The move follows a $60 million settlement with Instacart over allegations involving misleading “free delivery” claims and undisclosed fees
FTC targets “drip pricing” in delivery apps
The Federal Trade Commission has opened a rulemaking process aimed at what regulators describe as potentially unfair or deceptive fee practices in online food and grocery delivery services.
The agency is seeking public comment on whether companies such as DoorDash, Instacart, Uber Eats and others should be required to disclose the full cost of an order earlier in the purchasing process.
The FTC’s concern centers on so-called “drip pricing,” a practice in which consumers see an attractive initial price but encounter additional service fees, delivery charges and other costs later in the checkout process. Regulators are examining how menu prices, subscriptions, discounts and “free delivery” offers are presented to consumers.
Consumers paying far more than expected
The debate comes as delivery services have become a routine part of household spending. According to a LendingTree study cited by TheStreet, ordering through delivery platforms can cost nearly 80% more on average than picking up food directly from a restaurant.
Consumer groups argue that many shoppers do not realize how much they are paying in markups and fees until the final stages of an order. Some advocates also question whether item prices on delivery apps accurately reflect in-store prices.
Industry representatives counter that delivery pricing is complex because factors such as distance, order size, demand and product availability can change the final cost. They warn that overly rigid disclosure requirements could create confusion rather than clarity.
Recent enforcement actions raise pressure
The FTC’s review follows several high-profile enforcement actions involving delivery platforms.
In December 2025, Instacart agreed to pay $60 million in consumer refunds to settle allegations that it advertised “free delivery” while charging service fees and failed to adequately disclose automatic subscription renewals. Instacart denied wrongdoing but agreed to the settlement.
DoorDash has also faced litigation and settlements over fee disclosures and pricing practices. Chicago reached an $18 million settlement with the company in 2025 over allegations involving deceptive practices during the pandemic era. DoorDash did not admit wrongdoing, according to Top Class Actions.
What this means for consumers
If the FTC ultimately adopts new rules, consumers could see:
Earlier disclosure of delivery, service and platform fees.
Clearer explanations of subscription costs and renewal terms.
Better information about differences between in-store and app prices.
More transparency regarding promotions and “free delivery” offers.
Any federal rule would likely take months or years to finalize, but the issue is gaining momentum as regulators, lawmakers and consumer advocates increasingly focus on hidden fees across the economy. Similar transparency efforts have already targeted ticketing, lodging and other industries.
Affordability Watch
Food delivery apps offer convenience, but convenience often comes at a steep premium. Beyond delivery charges, consumers may pay higher menu prices, service fees, small-order fees and tips.
Consumer advocates say the FTC’s inquiry could make it easier for households to compare the true cost of delivery versus pickup before placing an order.