Dubai Issues Tough Guidelines to End Hidden Fees in Online Food Delivery

Dubai has introduced comprehensive new guidelines for online food delivery platforms, requiring them to disclose all charges clearly to consumers, eliminate hidden fees, and ensure fair business practices. The regulations, issued by the Dubai Corporation for Consumer Protection and Fair Trade (DCCPFT) under Dubai Economy and Tourism (DET), are designed to strengthen consumer trust, promote transparency and uphold the emirate’s reputation as a global hub for innovation and business excellence.

 

The Push for Clarity in Online Food Delivery

The food delivery industry has grown rapidly in Dubai, with platforms playing an increasingly vital role in the city’s hospitality and dining ecosystem. However, concerns have emerged about hidden charges, ambiguous promotions, and opaque pricing models that confuse consumers and strain relationships with restaurants.

 

In response, the DCCPFT has set out a detailed framework that makes transparency a mandatory standard. Platforms are now legally obliged to present customers with a clear and complete breakdown of charges before checkout, covering the cost of food items, delivery fees (with location-based variations where applicable), service or convenience fees, and taxes.

 

“The online food delivery sector has witnessed robust growth in recent years, and we recognise the vital role delivery platforms play in contributing to the overall growth and innovation of Dubai’s food and hospitality sector,” said Ahmad Ali Moosa, Director of Fair Trade & Business Protection at the DCCPFT. “These guidelines are designed to ensure fairness, transparency, and long-term sustainability for all stakeholders.”

 

No More Hidden Charges

One of the core provisions of the new rules is the outright ban on hidden or undisclosed charges. Delivery platforms can no longer add fees after payment or introduce unexpected surcharges without notifying customers in advance. Any service fees, pricing changes, or surcharges that appear without prior disclosure will be considered violations of the framework.

 

This provision addresses one of the most frequent complaints from consumers -- unexpected increases in their final bill at the checkout stage or after payment has been processed.

 

The DCCPFT guidelines also specify how platforms must present information. Key requirements include:

 

• Plain language: All charges and terms must be written in simple, straightforward wording that customers can easily understand.

• Visibility: Disclosures must be placed in positions that are clearly noticeable and not hidden in fine print.

• Consistency across devices: Information should be displayed equally across all versions of the platform -- whether accessed via a website, mobile app, or tablet -- and across different operating systems such as iOS and Android.

• Full transparency: No relevant detail can be omitted or obscured in a way that might mislead the customer or influence their decision.

 

By enforcing these standards, the framework ensures that customers receive the same level of clarity and protection regardless of how they access a delivery service.

 

Rules on Promotions and the Term “Exclusive”

The guidelines also address advertising and promotional practices, particularly the use of the term “exclusive.” Platforms are prohibited from using the word unless it is factually accurate and applies only to that platform. For instance, if a special deal, discount, or menu item is also available on other platforms, it cannot be marketed as “exclusive.”

 

This move aims to eliminate misleading promotions that exaggerate offers or create false impressions about deals available only through one service. All language used in marketing must be direct, accurate, and unambiguous.

 

Subscription Model Transparency

Subscription-based delivery services, which offer customers reduced delivery fees or other benefits in exchange for a monthly or annual fee, are also addressed in the framework.

 

The new rules state that platforms cannot transfer the costs of these benefits to restaurants through hidden means such as inflated commissions, indirect fees, or bundled charges. Any financial implications of subscription models must be transparent and fair to both consumers and restaurant partners.

 

This measure reflects growing concerns among restaurant operators that delivery platforms often absorb subscription costs by increasing charges elsewhere, eroding margins for small businesses.

 

Boosting Consumer Confidence and Industry Standards

Dubai’s move reflects a wider global trend where regulators are tightening oversight of online food delivery platforms to ensure fairness and protect consumer rights. In several markets, platforms have faced criticism for high commission rates, non-transparent pricing and the imposition of hidden charges.

 

By introducing clear guidelines, Dubai aims not only to safeguard consumers but also to raise the standards of the entire industry. The DCCPFT believes that greater transparency will help attract further investment into the sector by creating a business environment built on trust and fairness.

 

Global Context: A Growing Regulatory Focus

Globally, regulators are increasingly scrutinising the operations of food delivery apps. In the European Union, for example, new consumer protection directives require platforms to disclose the full cost of goods and services upfront. In the United States, several states have launched investigations into alleged hidden fees and deceptive pricing by major delivery companies.

 

Dubai’s guidelines are consistent with this global push but are also tailored to the emirate’s highly competitive and innovation-driven hospitality sector. With Dubai’s reputation as a dining destination continuing to grow, the regulations are designed to keep the industry both consumer-friendly and investment-ready.

 

Building a Fairer Marketplace

The DCCPFT emphasised that the new framework is not only about protecting consumers but also about creating a fairer playing field for restaurants and businesses. By outlawing hidden costs and requiring transparent subscription models, the guidelines aim to ensure restaurants are not unfairly burdened by indirect fees or misleading pricing structures.

 

For consumers, the changes mean greater confidence that the price they see at checkout is the price they will pay. For restaurants, it means clearer agreements and reduced risk of being disadvantaged by opaque business practices. For platforms, compliance may require changes to their operating systems and user interfaces, but in the long run, it could enhance credibility and customer loyalty.

 

Looking Ahead

Dubai’s updated regulations on online food delivery mark a significant step in strengthening the city’s consumer protection framework. As digital platforms continue to reshape how people dine, shop and interact with businesses, transparency and fairness are becoming central pillars of regulation worldwide.

 

By setting clear expectations for online delivery platforms, Dubai is positioning itself as a leader in consumer protection while supporting the sustainable growth of its booming food and hospitality sector.

 

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