[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3161 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 3161
To require third-party delivery platforms to follow certain pricing
practices, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 30, 2023
Mr. Lujan 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Promoting Real-time Information on
Cost Expenditure Act'' or the ``PRICE Act''.
SEC. 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.
SEC. 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.
SEC. 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.
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