AGs push Uber Eats to add a price disclaimer to the checkout page

Uber Eats 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 in restaurants. The app will display a disclosure that reads "Prices may be lower in store" after attorneys general asked 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 say the additional notice makes pricing more transparent.

“As more and more consumers use apps like Uber Eats, it’s critical that these companies are transparent about their pricing and the fact that getting food directly from a restaurant is often cheaper," Racine said in a joint statement 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 told Bloomberg 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, DoorDash and Grubhub require users to pay service fees, they charge restaurants a commission of up to 30 percent. 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.