Bill Text: NY A11158 | 2019-2020 | General Assembly | Introduced
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 12-0)
Status: (Introduced - Dead) 2020-12-04 - referred to consumer affairs and protection [A11158 Detail]
Download: New_York-2019-A11158-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 11158 IN ASSEMBLY December 4, 2020 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Fahy, McDo- nald, Woerner, Buttenschon, Barron, Gottfried, Galef, Jaffee, Mosley, Cusick, Englebright, Taylor) -- read once and referred to the Commit- tee on Consumer Affairs and Protection AN ACT to amend the general business law, in relation to third-party food delivery service charges 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- 22 lishment where such order is placed. Such term does not include taxes, 23 gratuities and any other fees that may make up the total cost to the 24 customer of an online order. 25 (e) "Third-party food delivery service" means any website, mobile 26 application or other internet service that offers or arranges for the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD17479-02-0A. 11158 2 1 sale of food and beverages prepared by, and the same-day delivery or 2 same-day pickup of food and beverages from, no fewer than twenty food 3 service establishments located in the city that are owned and operated 4 by different persons. 5 2. (a) No third-party food delivery service shall charge a food 6 service establishment a delivery fee that totals more than fifteen 7 percent of the purchase price of each online order. 8 (b) It shall be unlawful for a third-party food delivery service to 9 charge a food service establishment any fee or fees, other than a deliv- 10 ery fee permitted under paragraph (a) of this subdivision, for the use 11 of such third-party delivery service that is greater than five percent 12 of the purchase price of each online order. 13 (c) Any fee or other charges from a third-party food delivery service 14 to a food service establishment beyond such maximum five percent fee per 15 order, and a delivery fee collected pursuant to paragraph (a) of this 16 subdivision, are unlawful. 17 3. Whenever there shall be a violation of this section, an application 18 may be made by the attorney general in the name of the people of the 19 state of New York to a court or justice having jurisdiction to issue an 20 injunction to enjoin and restrain the continuance of such violation; and 21 if it shall appear to the satisfaction of the court or justice that the 22 defendant has, in fact, violated this section, an injunction may be 23 issued by such court or justice, enjoining and restraining any further 24 violation, without requiring proof that any person has, in fact, been 25 injured or damaged thereby. In any such proceeding, the court may make 26 allowances to the attorney general and direct restitution of an amount 27 not to exceed the amount of fees collected in violation of this section 28 by a third-party food delivery service, attorneys' fees, and such other 29 remedies as the court may deem appropriate. Whenever the court shall 30 determine that a violation of this section has occurred, the court may 31 impose a civil penalty of not more than one thousand dollars for each 32 violation. Each day a violation of this section is continued and each 33 food service establishment charged a fee in violation of this section 34 shall constitute a separate violation. In connection with any such 35 proposed application the attorney general is authorized to take proof 36 and make a determination of the relevant facts and to issue subpoenas in 37 accordance with the civil practice law and rules. 38 § 2. This act shall take effect immediately.
