FTC Targets Delivery Fees Nationwide

The Federal Trade Commission (FTC) is taking steps toward potentially regulating delivery fees nationwide, seeking public comment on "unfair or deceptive fee practices" in online food and grocery delivery services. The inquiry targets late fees appearing during checkout and pricing discrepancies from consumer expectations. Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, emphasized that "clear and truthful pricing is essential to competitive markets." The FTC is asking whether companies should disclose total prices earlier, explain fee purposes, and clarify pricing variations across users. Meanwhile, New York City Mayor Zohran Mamdani announced a nearly $1 million settlement with a delivery app over its fee structure, vowing to continue scrutiny. Experts suggest the crackdown extends beyond "junk fees" to broader concerns about platform power and pricing control. Jackie Swanson, a retail strategist, noted that "the fee structure question is the easy part." The FTC's rule-making hinges on defining "fees" and the scope of covered services, with potential ripple effects across industries.