File #: Int 0813-2022    Version: * Name: Establishing exemptions for third-party food delivery services from the limits on fees charged by such services on food service establishments.
Type: Introduction Status: Filed (End of Session)
Committee: Committee on Consumer and Worker Protection
On agenda: 11/3/2022
Enactment date: Law number:
Title: 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
Sponsors: Robert F. Holden, Marjorie Velázquez, Rafael Salamanca, Jr., Oswald Feliz, Kevin C. Riley, Eric Dinowitz, Mercedes Narcisse, Vickie Paladino, Kamillah Hanks, David M. Carr, Farah N. Louis, Shaun Abreu, Nantasha M. Williams, Amanda Farías, Althea V. Stevens, Julie Menin, Lynn C. Schulman, Rita C. Joseph, Kalman Yeger , Selvena N. Brooks-Powers, Sandra Ung, Justin L. Brannan, Carmen N. De La Rosa, Ari Kagan, Joseph C. Borelli, Joann Ariola , Inna Vernikov
Council Member Sponsors: 27
Summary: This bill would exempt a third-party food delivery service from the cap on fees it charges to a food service establishment if a delivery service offers an establishment: (i) the option to obtain delivery services for a fee consistent with all fee caps, and (ii) the option to be listed on the third-party food services platform for a fee consistent with the caps on delivery and transaction fees. 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 exemptions on third-party food delivery services, food service establishments and third-party food delivery service workers.
Indexes: Agency Rule-making Required, Report Required
Attachments: 1. Summary of Int. No. 813, 2. Int. No. 813, 3. November 3, 2022 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 11-3-22, 5. Minutes of the Stated Meeting - November 3, 2022, 6. Committee Report 3/29/23, 7. Hearing Testimony 3/29/23, 8. Hearing Transcript 3/29/23

Int. No. 813

 

By Council Members Holden, Velázquez, Salamanca, Feliz, Riley, Dinowitz, Narcisse, Paladino, Hanks, Carr, Louis, Abreu, Williams, Farías, Stevens, Menin, Schulman, Joseph, Yeger, Brooks-Powers, Ung, Brannan, De La Rosa, Kagan, Borelli, Ariola and Vernikov

 

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

 

Be it enacted by the Council as follows:

           Section 1. Section 20-563.3 of the administrative code of the city of New York, as added by local law number 103 for the year 2021, is amended to read as follows:

a. It shall be unlawful for a third-party food delivery service to charge a food service establishment a delivery fee that totals more than 15% of the purchase price of each online order.

b. It shall be unlawful for a third-party food delivery service to charge a food service establishment any fee or fees, other than a delivery fee and a transaction fee, for the use of their service that totals more than 5% of the purchase price of each online order.

c. It shall be unlawful for a third-party food delivery service to charge a food service establishment a transaction fee that totals more than 3% of the purchase price of each online order, provided however that a third-party food delivery service may charge a food service establishment a transaction fee of more than 3% of the purchase price of an online order if: (i) such transaction fee is charged to the food service establishment in the same amount as the charge imposed upon the third-party food delivery service for such online order, and (ii) such third-party food delivery service can provide proof of such charge imposed upon it to both the department and the relevant food service establishment upon request.

d. Subdivisions a, b and c of this section shall not apply to a third-party food delivery service that provides a food service establishment with: (i) the option to obtain delivery services for a fee consistent with the cap on fees as set forth in subdivisions a, b and c of this section, and (ii) the option to be listed on the third-party food delivery service platform for a fee consistent with the caps on fees as set forth in subdivisions b and c of this section.

e. No later than September 30, 2023, and every two years thereafter, the commissioner shall submit to the speaker of the council and the mayor a report on the fee cap pursuant to this section, which shall include but not be limited to recommendations related to either the maintenance or adjustment of the fee cap as set forth in this section, in consideration of factors from the immediately preceding two years, such as:

1. The effect of the cap as set forth in subdivisions a, b and c of this section and the effect of the exemption as set forth in subdivision d of this section on third-party food delivery services and food service establishments, including, but not limited to, the effect on the revenue of third-party food delivery services and the effect on the marketing and revenue of food service establishments;

2. Whether [the cap] such cap or such exemption affects wages and working conditions for persons who deliver food or beverages for third-party food delivery services;

3. Products that third-party food delivery services offer to food service establishments for listing, processing and marketing;

4. The number of complaints made to the department related to the alleged violations of this subchapter and the number of violations issued under this subchapter;

5. The total amount of penalties imposed as a result of violations of this subchapter; and

6. The amount of restitution recovered on behalf of food service establishments pursuant to this subchapter.

§ 2. This local law takes effect 120 days after it becomes law, except that the commissioner of consumer and worker protection shall take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.

 

 

 

 

 

 

 

 

 

NLB

LS #8717

8/25/2022