Bill Text: NJ S3542 | 2020-2021 | Regular Session | Introduced
Bill Title: Limits certain service fees charged by third-party food takeout and delivery applications during COVID-19 state of emergency.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-11 - Introduced in the Senate, Referred to Senate Commerce Committee [S3542 Detail]
Download: New_Jersey-2020-S3542-Introduced.html
Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Limits certain service fees charged by third-party food takeout and delivery applications during COVID-19 state of emergency.
CURRENT VERSION OF TEXT
As introduced.
An Act limiting certain third-party food takeout and delivery application service fees charged to restaurants and amending P.L.2020, c.42.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2020, c.42 (C.56:8-226) is amended to read as follows:
2. a. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any third-party food takeout and delivery service application or Internet website, during and until the first day of the third month following any state of emergency declared by the Governor in response to COVID-19 [that restricts restaurant dine-in service to less than 25 percent of the maximum capacity allowed by law,] to charge a service fee to a restaurant for [food] take-out or delivery orders that is:
(1) greater than 20 percent of the cost of the individual order; or
(2) greater than 10 percent of the cost of the individual order, when the order is delivered by an employee of the restaurant or an independent contractor with whom the restaurant has contracted directly.
The provisions of this section shall not be construed to limit the ability of any restaurant to [choose] affirmatively elect to pay up to 25 percent of the cost of the individual order to access additional advertising or other products and services offered by any third-party food takeout and delivery service application or Internet website if the terms of the agreement for extra services are set forth in simple, clear, understandable, and easily readable terms. [However, any restaurant that chooses to pay a service fee that is greater than the fee set forth in the provisions of this section shall be required to affirmatively elect to pay that fee regardless of any contract that is in effect on the effective date of this act unless] A restaurant may elect to waive the requirement that it affirmatively elect to pay up to 25 percent of the cost of the individual order if the contract was entered into prior to the state of emergency declared by the Governor pursuant to Executive Order No. 103 of 2020.
b. The provisions of this section shall supersede and preempt any county or municipal law, ordinance, resolution, or regulation concerning the relationship between third-party food takeout and delivery service applications or Internet websites and any restaurant utilizing its services.
c. As used in this section[,] :
"[third-party] Third-party
food takeout and delivery service application or Internet website" means
any online food ordering and
delivery service that allows a consumer to place an order for takeout or delivery from a restaurant.
"Restaurant" means any establishment primarily engaged in the preparation and sale of food or beverages for consumption on or off the premises.
(cf: P.L.2020, c.42, s.2)
2. This act shall take effect immediately.
STATEMENT
This bill limits the service fees that third-party food takeout and delivery service applications or websites may charge during a state of emergency declared by the Governor in response to the COVID-19 pandemic.
Under current law, it is an unlawful practice for a third-party food takeout and delivery service application or website to charge service fees that are greater than 20 percent of the cost of the individual order during and until the first day of the third month following any state of emergency declared by the Governor in response to COVID-19 that restricts restaurant dine-in service to less than 25 percent of the maximum capacity allowed by law.
Under the provisions of this bill, it would be an unlawful practice for any third-party food takeout and delivery service application or website to charge a restaurant a service fee for any take-out or delivery order that is greater than 20 percent of the cost of the individual order, during and until the first day of the third month following any state of emergency declared by the Governor in response to COVID-19.
In addition, this bill clarifies that current law is not to be construed to limit the ability of any restaurant to affirmatively elect to pay up to 25 percent of the cost of the individual order to access additional advertising or other services offered by the third-party food takeout and delivery service application or website if the terms of the agreement for extra services are set forth in simple, clear, understandable, and easily readable terms. However, a restaurant may elect to waive the requirement that it affirmatively elect to pay up to 25 percent of the cost of the individual order if the contract was entered into prior to the state of emergency declared by the Governor pursuant to Executive Order No. 103 of 2020.
The bill defines "restaurant" to mean any establishment primarily engaged in the preparation and sale of food or beverages for consumption on or off the premises.
