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Bill

Bill

S 4401

PRICE Act

119th Congress

The PRICE Act requires third-party delivery platforms to use a fixed, transparent pricing method, clearly display item prices and all delivery fees, and explain each fee before pay

Introduced in Senate
3
WeVote Research Nonpartisan
Bill Summary · S 4401

Overview

  • Bill: S. 4401, 119th Congress, 2nd Session
  • Title: PRICE Act (Promoting Real-time Information on Cost Expenditure Act)
  • Sponsor: Senator Lujan

  • Purpose: Mandate certain pricing practices for third-party delivery platforms (TPDPs) to ensure transparent, non-discriminatory, and predictable pricing for consumers.

  • Status: Introduced and referred to the Senate Committee on Commerce, Science, and Transportation (April 27, 2026)

Main purpose and intent

  • Establish a nationwide framework to regulate how third-party delivery platforms price delivery of items from retail establishments.
  • Target is to curb confusing or deceptive pricing practices and increase transparency for consumers from order selection through payment.

Key provisions and changes

Definitions (Section 2)

  • Commission: Federal Trade Commission (FTC).
  • Delivery fee: Any fee charged by a TPDP for an order, in addition to what the retail establishment charges for the items, applicable even if the retailer doesn’t offer in-person dining.
  • Retail establishment: Any physical venue offering items for sale to customers (including restaurants) either in-person or via TPDP orders.
  • Third-party delivery platform: A TPDP is an internet-based service (website, app, etc.) that arranges same-day delivery from retail establishments and is not owned or operated by the retail establishment.

Pricing requirements for TPDPs (Section 3)

  • Effective date: 90 days after enactment.

  • Prohibition: It shall be unlawful to operate a TPDP that does not meet the pricing requirements.

  • Delivery fee calculation (subsection b(1)):

    • Any delivery fee must be calculated using a fixed methodology determined before the user places the order or at the moment of selection.
    • The fee must be based solely on:
    • The total price charged by the retail establishment for the items (excluding taxes and platform fees).
    • Other delivery-related factors (e.g., delivery distance).
    • Must not rely on proxies tied to user characteristics (e.g., inferred price sensitivity, prior purchasing behavior) or on negotiated arrangements between the TPDP and retailer.

  • Transparency of item and fees (subsection b(2)-(3)):

    • When a user selects an item, the platform must prominently display:
    • The item’s price charged by the retailer (excluding taxes).
    • Any applicable delivery fees charged by the platform.
    • Throughout the ordering process, the platform must clearly display the ongoing total amount to be charged, including item costs, taxes, and fees.

  • Delivery fee explanation (subsection b(4)):

    • Before requesting payment, the platform must provide a clear, conspicuous explanation of each delivery fee, including:
    • The amount and what it relates to.
    • Whether the fee is refundable.
    • Additional information as the FTC may specify.

  • Gratuities (subsection c):

    • The Act does not prohibit adding a gratuity; platforms may allow user-added tips.

Enforcement (Section 4)

  • FTC enforcement (a):

    • Violations treated as unfair or deceptive acts or practices under FTC Act.
    • FTC to enforce with existing authorities, powers, and procedures; regulations may be issued to implement provisions.

  • State enforcement (b):

    • States may bring civil actions on behalf of their residents for violations, with provisions for notice, intervention by the FTC, and coordination between state and federal actions.
    • Rules cover venue, service of process, and rights to seek injunctive relief, damages, restitution, or other appropriate relief.

  • Coordination and jurisdiction:

    • Actions may be brought in U.S. district courts or state courts of competent jurisdiction.
    • If the FTC brings an action, states cannot file duplicative actions against the same defendant during the federal action.

Who or what would be affected

  • Affected entities:
    • Third-party delivery platforms that arrange same-day delivery from retailers (e.g., food and goods delivery apps) that are not owned/operated by the retailer.
  • Affected consumers:
    • Users ordering items through TPDPs; benefit from clearer pricing, item price visibility, and transparent fee explanations.
  • Retail establishments:
    • Retailers may experience changes in how their item pricing is displayed within TPDPs and may need to align agreements with TPDPs to ensure consistent pricing disclosures.

Procedural and timeline aspects

  • Enactment timeline:
    • Once enacted, TPDPs must comply starting 90 days after enactment.
  • Compliance requirements:
    • Standardized, non-discriminatory delivery fee calculations.
    • Real-time and post-order transparency of item prices, delivery fees, and total order cost.
    • Pre-payment fee explanations for consumers.
  • Enforcement mechanisms:
    • FTC civil enforcement under existing statutes for unfair or deceptive acts or practices.
    • Parallel state attorney general enforcement with notice, coordination, and potential damages/restitution.

Potential impacts to monitor

  • Pricing fairness and predictability for consumers shopping via TPDPs.
  • Reduction of opaque or fluctuating delivery fees during the ordering process.
  • Compliance burden on TPDPs to adjust pricing algorithms and user interface disclosures.
  • Interaction with existing state consumer protection laws and potential consumer restitution in enforcement actions.

If you’d like, I can tailor this summary for a specific audience (e.g., policymakers, business stakeholders, or consumer advocates) or compare it to current FTC authority and similar state laws.

Compiled from official sources — confirm details with the bill’s official record.

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