Users in Pennsylvania and Washington, DC will now see a notice on the checkout page saying that items they’re about to order may be more expensive than restaurants. The app will display a disclosure that reads, “Prices may be lower in store” after the attorney’s general asks for the change.
The Uber Eats app already has some pricing disclosures, according to Uber. Pennsylvania Attorney General Josh Shapiro and District of Columbia Attorney General Karl Racine said the additional notice makes pricing more transparent.
“As more and more consumers use apps like Uber Eats, these companies must be transparent about their pricing and the fact that getting food directly from a restaurant is often cheaper,” Racine said in a from the AGs. “We strongly encourage other delivery apps to follow in Uber Eats’ footsteps. Those that do not risk investigation and scrutiny by our offices. Consumers deserve clear information so they can make informed decisions that work best for them.”
Uber said that its partners set their own prices on Uber Eats. “We think it’s important to provide this flexibility to our merchant partners, especially during the recovery of local commerce,” a spokesperson said.
Not only do food delivery platforms like Uber Eats and require users to pay service fees, but they also charge restaurants a commission. Given that the restaurant industry already operates on thin margins, it makes sense that merchants bump up the price of menu items on the apps to offset the cost of commissions.
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