Wyden, Senate colleagues urge transparency for food delivery service ‘junk fees’

WASHINGTON (KTVZ) -- Sens. Ron Wyden (D-Ore.), Ben Ray Luján (D-N.M.) and Richard Blumenthal (D-Conn.) said Wednesday they are urging Grubhub, Uber Eats and DoorDash to adopt more transparency on "junk fees," calling it a misleading and harmful price-gouging practice directed at consumers and small businesses.

With 16 percent of Americans relying on income from an online gig platform, many small businesses struggling to stay open, and many vulnerable Americans depending on food delivery apps during the COVID-19 pandemic, the lawmakers said Congress has a responsibility to ensure consumers, workers and restaurants that rely on those applications have access to a fair and transparent marketplace.

In their letter to the CEOs of Grubhub, Uber Eats and DoorDash, Wyden and his colleagues seek clarification on the practices of food delivery services relating to fees, payments to businesses, consumer disclosures, and compensation for delivery workers.

“Food delivery apps play an important role in many Americans’ lives, and they experienced massive growth during the pandemic. Unfortunately, the industry has been regularly accused of unfair and deceptive practices,” the senators wrote. “Consumers should not have to work through a confusing fee structure, deceptive offers and discounts, and potentially inflated prices while attempting to order a meal and support local businesses.”

The full text of each letter is here: Grubhub, Uber Eats, and DoorDash