PRICE Act

Bill: 118-s-3161
Sponsor: full_name: Sen. Lujan, Ben Ray [D-NM]
Introduced: 2023-10-30
Policy area: Commerce
Latest action: action_date: 2023-10-30
text: Read twice and referred to the Committee on Commerce, Science, and Transportation.

Summaries:

tv_txt: II 118th CONGRESS 1st Session S. 3161 IN THE SENATE OF THE UNITED STATES October 30, 2023 Mr. Luján introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To require third-party delivery platforms to follow certain pricing practices, and for other purposes.

1. Short title This Act may be cited as the Promoting Real-time Information on Cost Expenditure Act or the PRICE Act . 2. Definitions In this Act: (1) Commission The term Commission means the Federal Trade Commission. (2) Delivery fee The term delivery fee means any fee imposed by a third-party delivery platform on a user of the platform with respect to an order placed through the platform of items from a retail establishment that is in addition to any charge that the retail establishment would impose on the sale of the same items if they were purchased by an individual who is physically present in such establishment. In the case of a retail establishment that does not offer items for sale to individuals who are physically present in such establishment, such term shall include any fee imposed by a third-party delivery platform that is in addition to the menu or retail price for the items ordered. (3) Retail establishment The term retail establishment means a physical establishment (including a restaurant) where items (including food, beverages, or other goods) are offered for sale to individuals who— (A) are physically present in such establishment; or (B) place orders through a third-party delivery platform. (4) Third-party delivery platform The term third-party delivery platform means any website, mobile application, or other internet service that— (A) as its primary function, offers or arranges for the sale and same-day delivery of items (including food beverages, or other goods) from a retail establishment; and (B) is not owned by, under common ownership with, operated by, or a subsidiary of the retail establishment. 3. Pricing requirements for third-party delivery platforms (a) In general Beginning 90 days after the date of enactment of this Act, it shall be unlawful to operate a third-party delivery platform unless such platform satisfies the requirements described in subsection (b). (b) Pricing requirements The requirements described in this subsection, with respect to a third-party delivery platform, are the following: (1) If the third-party delivery platform charges 1 or more delivery fees for an order from a retail establishment, any such delivery fee shall be— (A) calculated using a methodology that is determined no later than the time the user placing the order selects the retail establishment and may not change once the user has begun their order from the retail establishment; and (B) based solely on— (i) the total price charged by the retail establishment for items ordered by the user, excluding any taxes and any fees imposed by the third-party delivery platform; and (ii) other factors related to the delivery of the items ordered from the retail establishment, including the delivery distance, but excluding— (I) any other factor related to the user who placed the order; and (II) any factor related to an arrangement negotiated between the third-party delivery platform and the retail establishment. (2) Whenever a user selects an item to order from a retail establishment through the third-party delivery platform, the third-party delivery platform shall prominently display— (A) the price charged by the retail establishment for such item, excluding any taxes; and (B) if applicable, any delivery fees imposed with respect to such item by the third-party delivery platform. (3) Throughout the ordering process, the third-party delivery platform shall prominently display the ongoing total amount to be charged to the user for the order that includes every item and service that the user has selected up to that point. Such total amount shall include the cost of each item selected, applicable taxes, and any applicable fees. (4) Prior to requesting payment for an order, the third-party delivery platform shall provide the user with an explanation, in a clear, conspicuous, and not misleading manner, of each delivery fee imposed on the user by the platform and what the fee is for. Such explanation shall include the amount of the delivery fee, the item or service that the delivery fee relates to, whether the delivery fee is refundable, and such other information as the Commission may specify. (c) Rule of construction regarding gratuities Nothing in this section shall be construed to prevent a third-party delivery platform from allowing a user to add a gratuity to their order. 4. Enforcement (a) Enforcement by the Federal Trade Commission (1) Unfair and deceptive acts or practices A violation of this Act shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act ( 15 U.S.C. 57a(a)(1)(B) ). (2) Powers of the Commission (A) In general The Commission shall enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ) were incorporated into and made a part of this Act. (B) Privileges and immunities Any person that violates this Act shall be subject to the penalties, and entitled to the privileges and immunities, provided in the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ). (C) Regulations The Commission shall, pursuant to section 553 of title 5, United States Code promulgate such regulations as the Commission determines necessary to carry out the provisions of this Act. (D) Authority preserved Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law. (b) Enforcement by State attorneys general (1) In general (A) Civil actions In any case in which the attorney general of a State has reason to believe that an interest of the residents of that State has been or is threatened or adversely affected by the engagement of any person in a practice that violates this Act, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in a district court of the United States or a State court of appropriate jurisdiction to— (i) enjoin that practice; (ii) enforce compliance with this Act or such regulation; (iii) on behalf of residents of the State, obtain damages, restitution, or other compensation, each of which shall be distributed in accordance with State law; or (iv) obtain such other relief as the court may consider to be appropriate. (B) Notice (i) In general Before filing an action under subparagraph (A), the attorney general of the State involved shall provide to the Commission— (I) written notice of that action; and (II) a copy of the complaint for that action. (ii) Exemption (I) In general Clause (i) shall not apply with respect to the filing of an action by an attorney general of a State under this paragraph if the attorney general of the State determines that it is not feasible to provide the notice described in that clause before the filing of the action. (II) Notification In an action described in subclause (I), the attorney general of a State shall provide notice and a copy of the complaint to the Commission at the same time as the attorney general files the action. (2) Intervention (A) In general On receiving notice under paragraph (1)(B), the Commission shall have the right to intervene in the action that is the subject of the notice. (B) Effect of intervention If the Commission intervenes in an action under paragraph (1), it shall have the right— (i) to be heard with respect to any matter that arises in that action; and (ii) to file a petition for appeal. (3) Construction For purposes of bringing any civil action under paragraph (1), nothing in this Act shall be construed to prevent an attorney general of a State from exercising the powers conferred on the attorney general by the laws of that State to— (A) conduct investigations; (B) administer oaths or affirmations; or (C) compel the attendance of witnesses or the production of documentary and other evidence. (4) Actions by the commission In any case in which an action is instituted by or on behalf of the Commission for violation of this Act, no State may, during the pendency of that action, institute a separate action under paragraph (1) against any defendant named in the complaint in the action instituted by or on behalf of the Commission for that violation. (5) Venue; service of process (A) Venue Any action brought under paragraph (1) may be brought in— (i) the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28, United States Code; or (ii) a State court of competent jurisdiction. (B) Service of process In an action brought under paragraph (1) in a district court of the United States, process may be served wherever defendant— (i) is an inhabitant; or (ii) may be found.