FTC eyes delivery fee crackdown, Pizza Hut operators may face changes

Pizza Hut operators could soon have to explain every dollar on a delivery ticket more clearly, and that could change where customers place their next order. The Federal Trade Commission has moved to examine how online food delivery services show markups, hidden fees, free-delivery claims and tip information on apps such as DoorDash, Uber Eats and Grubhub.

The agency submitted an advance notice of proposed rulemaking to the Office of Information and Regulatory Affairs at the Office of Management and Budget on April 10, then published it in the Federal Register on April 16. Public comments are due by May 18. The FTC said it wants to look at potentially unfair or deceptive practices tied to online delivery platforms, with an eye on how fees appear before a customer reaches checkout.

That matters on the Pizza Hut side because the company already draws a bright line between its own delivery charge and a tip. Pizza Hut says the delivery charge is not a driver tip, and that 100% of the delivery fee is retained by the restaurant. On third-party apps, customers can face a messier stack of costs, including restaurant markups, platform fees, delivery fees and tips, which can make the final total feel very different from the menu price.

If the FTC tightens disclosure rules, Pizza Hut managers may need to present a cleaner explanation of the order total whether the sale comes through the chain’s website or through a marketplace app. That could affect conversion at the checkout screen, shift more orders back to Pizza Hut’s direct channels, or force franchisees to rethink how they price promotions. It could also change the kind of pushback kitchen crews and store managers hear when customers arrive or call after seeing a higher total than expected.

The scale of the platforms suggests any change would ripple widely rather than choke off app delivery. Uber said its delivery gross bookings rose 26% year over year in the fourth quarter of 2025 and topped a $100 billion annual run rate, while DoorDash reported fourth-quarter 2025 revenue of $3.96 billion. Uber also guided first-quarter 2026 gross bookings of $52.0 billion to $53.5 billion.

The FTC is not starting from scratch. In December 2024, the agency and the Illinois attorney general announced a $25 million settlement with Grubhub over allegations that included deceiving diners about delivery costs and misleading workers and restaurants. Yum! Brands has said Pizza Hut has made progress by embracing third-party aggregators to solve delivery challenges, but any tougher fee rules would force a fresh look at how much business belongs on those platforms and how much should stay inside Pizza Hut’s own system.