NYC Council Introduction 762

intro.nyc/0762-2024 2024-2025 Legislative Session
Establishing exemptions for third-party food delivery services from the limits on fees charged by such services on food service establishments.
Status: Laid Over in Committee Committee on Consumer and Worker Protection
Sponsored by Rafael Salamanca, Jr.
Introduced: April 11, 2024

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 define “basic service fee” to mandate the services that restaurants shall receive for the 5% capped fee. The bill would also update the definition of “delivery fee” so that such fee ensures a restaurant receives delivery service within at least a one-mile radius from their location. Additionally, the bill would permit third-party food delivery services to charge an additional fee for enhanced services as long as the third-party delivery service offers restaurants basic and delivery services at the current capped amount. Charges for enhanced services if a restaurant selects to purchase them would be capped at 20%. Third-party delivery services would be required to notify restaurants of any pricing changes or options to purchase enhanced services upon passage of this bill and provide restaurants an opportunity to amend their terms of service accordingly. This bill would also restrict third-party food delivery services from purchasing a restaurant’s name for purposes of internet advertising, allow restaurants to include marketing materials in orders made through third-party food delivery services, and allow restaurants to charge different prices for items ordered through a third-party food delivery service and items ordered directly through