FTC targets food-delivery 'junk fees' in new rulemaking push
New effort may extend beyond apps like DoorDash and Grubhub to restaurants and grocers using their own delivery systems
The Federal Trade Commission is weighing a broad new crackdown on so-called “junk fees” charged by online food and grocery delivery services, opening the door to tougher disclosure rules that could affect not only third-party apps but also restaurants and supermarkets operating their own delivery platforms.
In an advance notice of proposed rulemaking published April 16, the FTC asked the public to weigh in on whether delivery companies are engaging in unfair or deceptive practices tied to fees, markups and surprise charges that consumers often encounter when ordering meals or groceries online.
The agency’s inquiry follows years of consumer complaints about rising delivery costs, service fees, small-order fees, priority fees and other add-ons that can dramatically inflate the final bill.
The FTC’s notice includes more than 60 questions covering topics ranging from the structure of the food-delivery market to the legality and transparency of fees charged by delivery platforms and merchants.
On the list
Among the practices the FTC is examining:
Failure to clearly disclose the total cost of food or grocery delivery
Hidden or poorly explained delivery fees
Unclear explanations of how fees are calculated
Charges presented as optional that may actually be mandatory
Higher prices for delivery items compared with in-store purchases
Restrictions tied to discounts and promotions
Charges for products or services consumers did not agree to buy
Fees imposed without consumer consent
The comment period runs through May 18.
Broader push against hidden fees
The move is the latest step in a broader federal campaign against hidden or misleading consumer charges across multiple industries.
The FTC has already pursued enforcement actions involving delivery platforms, including a high-profile case against Grubhub over allegations tied to deceptive practices and misleading claims involving deliveries and earnings.
The new proposal also builds on the FTC’s 2025 “junk fees” rule requiring upfront pricing disclosures in the live-event ticket and short-term lodging industries.
Consumer advocates have long argued that food-delivery pricing has become increasingly difficult to understand, with fees often layered onto orders late in the checkout process.
A burger, fries and drink that appears to cost $18 at the start of an order can easily exceed $30 after taxes, delivery charges, service fees and tips are added.
The FTC appears especially interested in whether consumers understand which fees go to drivers, which are retained by platforms and which may be shared with restaurants or grocers.
Restaurants and grocers could also be affected
While much of the attention has focused on third-party delivery giants, the FTC signaled that any eventual rule could reach far beyond those companies.
The agency specifically requested comments on fees charged by “food and grocery merchants” operating their own apps or online ordering systems.
That means restaurant chains, grocery stores and regional delivery operators could eventually face new disclosure requirements if the rulemaking moves forward.
Businesses operating in states with existing pricing-transparency laws may face added compliance pressure if federal standards are adopted.
Industry lawyers said the ultimate scope of any final rule remains uncertain because the FTC is still gathering information about how delivery pricing works across the marketplace.
Consumer costs remain a growing concern
The FTC’s inquiry comes as Americans continue to rely heavily on app-based delivery services despite ongoing affordability concerns.
Food-delivery usage surged during the pandemic and has remained elevated, even as consumers complain about rising costs and shrinking portion sizes.
Consumer groups have increasingly argued that unclear pricing practices make it difficult for households to comparison shop or understand the real cost of convenience-based services.
Critics also say consumers may not realize that some menu items are marked up for delivery compared with in-store purchases.
The FTC has not yet proposed specific regulations, but the ANPRM suggests the agency is considering rules that would require more detailed and upfront disclosures before consumers complete purchases.
Businesses, consumer groups and members of the public can submit comments through May 18 before the agency decides whether to move to the next stage of formal rulemaking.