A Local Law to amend the administrative code of the city of New York, in relation to establishing exemptions for third-party food delivery services from the limits on fees charged by such services on food service establishments

Summary

The current cap on fees that a third-party delivery service may charge a restaurant for the use of their service is 15% for delivery, 3% for credit card processing, and 5% for any other fees – these percentages are calculated per order. This bill would allow third-party delivery services to charge a restaurant an additional 20% for enhanced services. It would only permit the use of the enhanced service fee, however, if the delivery service offers the option to purchase a basic service at a cost no higher than the current fee limits, and if such basic service includes the option to obtain delivery services and be listed and discoverable on the third-party platform. This bill would require third-party delivery services to notify restaurants that have an existing agreement with such service about the new services offered, the caps on fees, and any changes that would be made to the service fees. It would also require third-party delivery services to prepare monthly transaction statements that include an itemized list of fees charged to restaurants. This bill would also restrict third-party food delivery services from purchasing the name of a restaurant for purposes of internet advertising. This bill would allow restaurants to include marketing materials in orders made through third-party food delivery services, and it would not prohibit restaurants from charging different prices for items ordered through a third-party food delivery service. This bill would also update the reporting requirements regarding the fee caps, requiring the Department of Consumer and Worker Protection to report on the effect of the fee caps and the number of violations issued under this subchapter.

Official summary of legislation · NYC Council