Bill Text: NY A04127 | 2021-2022 | General Assembly | Amended
Bill Title: Prohibits third-party food delivery services from charging a food service establishment a delivery fee that totals more than a certain percent of the total purchase price of an online order.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2022-01-05 - referred to consumer affairs and protection [A04127 Detail]
Download: New_York-2021-A04127-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4127--B 2021-2022 Regular Sessions IN ASSEMBLY February 1, 2021 ___________ Introduced by M. of A. FAHY, McDONALD, BURDICK -- read once and referred to the Committee on Consumer Affairs and Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amend- ments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law, in relation to third-party food delivery service charges; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new section 2 391-v to read as follows: 3 § 391-v. Third-party food delivery service charge. 1. For the purposes 4 of this section, the following terms shall have the following meanings: 5 (a) "Delivery fee" means a fee charged by a third-party food delivery 6 service for providing a food service establishment with a service that 7 delivers food from such establishment to customers. The term does not 8 include any other fee that may be charged by a third-party food delivery 9 service to a food service establishment, such as fees for listing or 10 advertising the food service establishment on the third-party food 11 delivery service platform or fees related to processing the online 12 order. 13 (b) "Food service establishment" means a place where food is provided 14 for individual portion service directly to the consumer whether such 15 food is provided free of charge or sold, and whether consumption occurs 16 on or off the premises or is provided from a pushcart, stand or vehicle. 17 (c) "Online order" means any order placed by a customer through or 18 with the assistance of a platform provided by a third-party food deliv- 19 ery service, including a telephone order. 20 (d) "Purchase price" means the total price of the items contained in 21 an online order that are listed on the menu of the food service estab- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06555-08-1A. 4127--B 2 1 lishment where such order is placed. Such term does not include taxes, 2 gratuities and any other fees that may make up the total cost to the 3 customer of an online order. 4 (e) "Third-party food delivery service" means any website, mobile 5 application or other internet service that offers or arranges for the 6 sale of food and beverages prepared by, and the same-day delivery or 7 same-day pickup of food and beverages from, no fewer than twenty food 8 service establishments located in the state that are owned and operated 9 by different persons. 10 2. Notwithstanding any other law, rule or regulation: 11 (a) No third-party food delivery service shall charge a food service 12 establishment a delivery fee that totals more than fifteen percent of 13 the purchase price of each online order; 14 (b) It shall be unlawful for a third-party food delivery service to 15 charge a food service establishment any fee or fees, other than a deliv- 16 ery fee permitted under paragraph (a) of this subdivision, for the use 17 of services provided by such third-party delivery service that is great- 18 er than five percent of the purchase price of each online order, 19 provided that such cap shall not apply to a payment processing fee that 20 is charged to the third-party food delivery service and is charged in 21 the same amount by the third-party food delivery service to such food 22 service establishment; 23 (c) Any fee or other charges from a third-party food delivery service 24 to a food service establishment beyond such maximum five percent fee per 25 order and a payment processing fee pursuant to paragraph (b) of this 26 subdivision, and a delivery fee collected pursuant to paragraph (a) of 27 this subdivision, shall be unlawful. Nothing in this chapter shall 28 prohibit an agreement between a food service establishment and a third- 29 party food delivery service to obtain optional products or services, 30 including, but not limited to, advertising, marketing, or access to 31 customer subscription programs; and 32 (d) No third-party food delivery service shall reduce the compen- 33 sation, including but not limited to, any tip or gratuity, paid to any 34 worker, as a result of compliance with the provisions of this section. 35 3. Whenever there shall be a violation of this section, an application 36 may be made by the attorney general in the name of the people of the 37 state of New York to a court or justice having jurisdiction to issue an 38 injunction to enjoin and restrain the continuance of such violation; and 39 if it shall appear to the satisfaction of the court or justice that the 40 defendant has, in fact, violated this section, an injunction may be 41 issued by such court or justice, enjoining and restraining any further 42 violation, without requiring proof that any person has, in fact, been 43 injured or damaged thereby. In any such proceeding, the court may make 44 allowances to the attorney general and direct restitution of an amount 45 not to exceed the amount of fees collected in violation of this section 46 by a third-party food delivery service, attorneys' fees, and such other 47 remedies as the court may deem appropriate. Whenever the court shall 48 determine that a violation of this section has occurred, the court may 49 impose a civil penalty of not more than one thousand dollars for each 50 violation. Each day a violation of this section is continued and each 51 food service establishment charged a fee in violation of this section 52 shall constitute a separate violation. In connection with any such 53 proposed application the attorney general is authorized to take proof 54 and make a determination of the relevant facts and to issue subpoenas in 55 accordance with the civil practice law and rules.A. 4127--B 3 1 4. This section shall supersede and preempt all rules, regulations, 2 codes, statutes, or ordinances of all cities, counties, municipalities, 3 and local agencies regarding third-party food delivery service fees 4 until expiration of this section. 5 § 2. This act shall take effect immediately, and shall expire and be 6 deemed repealed ninety days after the end of the state disaster emergen- 7 cy declared pursuant to executive order number 202 and any further 8 amendments or modifications, and as may be further extended pursuant to 9 section 28 of the executive law; and provided, further, that the attor- 10 ney general shall notify the legislative bill drafting commission upon 11 the occurrence of the expiration of the state disaster emergency 12 declared by executive order number 202 and any further amendments or 13 modifications, and as may be further extended pursuant to section 28 of 14 the executive law, in order that the commission may maintain an accurate 15 and timely effective data base of the official text of the laws of the 16 state of New York in furtherance of effectuating the provisions of 17 section 44 of the legislative law and section 70-b of the public offi- 18 cers law.
