What’s Really on the Menu? FTC Examines Fee Transparency in Online Food Delivery

On April 14, the FTC announced that it is seeking public comment on whether a new rule is needed to address unfair or deceptive pricing and fee practices by online food and grocery delivery platforms. The FTC published an Advance Notice of Proposed Rulemaking (ANPRM) seeking written comments, data, evidence, analyses, and arguments to inform its assessment of whether and how to protect consumers. Companies that operate online food or grocery delivery platforms could be significantly impacted by fee disclosures, pricing practices, and the broader regulatory landscape across the delivery sector. At this stage, the FTC is not proposing specific regulatory requirements but is instead using the rulemaking process to gather information and assess whether and how federal regulation may be warranted.

The FTC’s initiative follows a series of high-profile enforcement actions targeting hidden and misleading fees in the food delivery industry. In December 2025, the FTC reached a $60 million settlement with Instacart, alleging that the platform had promoted complimentary delivery for new customers while quietly imposing service charges that only appeared at the final stage of the transaction. The prior year in December 2024, the FTC secured a $25 million settlement with GrubHub based on claims that the platform obscured the true cost of its delivery services. The FTC appears to be leveraging these enforcement actions to support its view that case-by-case litigation alone is insufficient to address what it characterizes as persistent and industry-wide pricing concerns, thereby laying the groundwork for broader regulation.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that “[o]nline grocery fees that are unclear, inconsistently disclosed, or revealed only at the last moment before consumers make a purchase distort competition and harm consumers.” He emphasized that “[c]lear and truthful pricing is essential to competitive markets” and that “consumers continue to face fees that prevent them from making informed comparisons.”

In addition, the FTC observed that although some states have enacted legislation aimed at improving fee transparency among delivery platforms, there are no consistent requirements on a nationwide basis. The ANPRM thus explores whether a nationwide rule would fill this gap.

Implications for Industry Participants

Companies operating in the online food and grocery delivery ecosystem may wish to consider taking proactive steps in light of the FTC’s inquiry, including:

• Reviewing fee disclosures across web, mobile, and in-app ordering flows for clarity and prominence.

• Assessing whether mandatory fees are clearly distinguished from optional services or expedited offerings.

• Evaluating the use of variable or dynamic pricing and how those practices are communicated to consumers.

• Determining whether to submit comments to the FTC addressing operational constraints, consumer benefits, or alternative approaches to transparency.

This ANPRM signals the FTC’s intent to move beyond case-by-case enforcement and toward comprehensive, industry-wide regulation of fee transparency in the online food and grocery delivery space. Companies operating in this sector, including delivery platforms, third-party logistics providers, and online grocery retailers, should carefully review their current fee disclosure practices considering the issues raised in the ANPRM. Companies may also wish to consider participating in the public comment process to help shape the contours of any potential rule.

Considerations for Restaurant Brands

While the FTC’s inquiry is directed primarily at online food and grocery delivery platforms, restaurant brands may also feel the effects of any resulting rulemaking. Restaurants that rely on third-party platforms to reach consumers should be mindful that platform-level pricing, fee disclosures, and promotional practices can influence consumer perceptions of restaurant pricing and value.

The FTC’s focus on all-in price transparency, price differentials, and promotional disclosures may prompt platforms to revisit how menu prices, service fees, and discounts are presented. These are changes that could, in turn, affect restaurant-platform agreements, menu pricing strategies, and customer communications. Restaurant brands may wish to monitor developments closely and consider whether to engage in the comment process to ensure that the operational realities of restaurants, including commission structures and promotional programs, are reflected in the rulemaking record.

Looking Ahead

As online ordering continues to shape consumer expectations, the FTC’s inquiry underscores growing scrutiny of how delivery pricing is structured and disclosed. Even in the absence of an immediate rule proposal, companies should view this proceeding as an opportunity to take stock of existing fee and pricing practices and to consider whether engagement with the agency could help ensure that any future regulatory framework reflects operational realities across the food delivery marketplace. We will continue to monitor this proceeding and provide updates as the rulemaking process develops.