PRICE Act
- Bill Number
- S. 4401
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-04-27: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Last Updated
- 2026-05-12T12:31:37Z
AI-Generated Summary
PRICE Act (S. 4401) Summary
Purpose
The PRICE Act aims to promote transparency in pricing on third-party delivery platforms (like apps that arrange same-day delivery from restaurants or stores they don't own) by requiring clear display and fair calculation of delivery fees, preventing surprises for users.
Key Provisions
- Definitions:
- Third-party delivery platform: Websites or apps primarily for selling and delivering items (food, goods) from independent retail establishments (e.g., restaurants).
- Delivery fee: Extra charges by the platform beyond what the retail establishment would charge in-person (or menu price for non-in-person stores).
- Retail establishment: Physical stores or restaurants selling to in-person customers or via these platforms.
- Pricing Requirements (effective 90 days after enactment):
- Delivery fees must be calculated when the user picks the retail establishment, locked in, and based only on order subtotal (excluding taxes and platform fees) plus delivery factors like distance—not user traits (e.g., inferred willingness to pay) or platform-retailer deals.
- Show retail price (excluding taxes) and any delivery fees when selecting items.
- Display running total (items, taxes, fees) throughout ordering.
- Before payment, clearly explain each delivery fee: amount, purpose, related item, refundability, and more as specified by the FTC.
- Platforms can still allow user-added tips (gratuities).
Significant Changes to Existing Law
- Introduces first federal rules specifically mandating transparent, non-discriminatory delivery fee calculations and real-time pricing displays on third-party platforms.
- Treats violations as unfair/deceptive practices under the Federal Trade Commission (FTC) Act, enabling FTC enforcement with existing powers (fines, injunctions).
- Adds state attorneys general enforcement rights, coordinated with FTC.
Potential Impacts
- Citizens (consumers): Greater price predictability, reduced "surge" or personalized pricing based on user data, easier comparison shopping.
- Third-party platforms: Need to update apps/websites, algorithms, and disclosures; possible higher compliance costs but fairer competition.
- Retail establishments: Indirectly benefits from accurate menu price displays, potentially aiding customer trust.
- Government agencies: FTC gains rulemaking/enforcement authority; state AGs can pursue local relief (e.g., damages for residents).
- No direct international relations impact.
Main Stakeholders Affected
- Primary: Third-party delivery platforms (e.g., DoorDash, Uber Eats).
- Consumers: Users ordering deliveries.
- Retail establishments: Restaurants/stores partnering with platforms.
- Enforcers: FTC and state attorneys general.
Notable Legal, Constitutional, or Political Implications
- Legal: Leverages FTC Act for enforcement (civil penalties, investigations); allows FTC regulations and state suits with FTC notice/intervention to avoid overlap.
- Constitutional: Regulates commercial speech (pricing info), likely upheld as it promotes truthful disclosure without restricting core expression.
- Political: Enhances consumer protections in online delivery market; balances platform innovation with anti-deception measures, potentially influencing gig economy regulations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-27: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2026-04-27: Introduced in Senate
Bill Versions
- Promoting Real-time Information on Cost Expenditure Act — issued 2026-04-27 — PDF (11 pages)