Photo credit: Alessandro Biascioli
Continuing the vital work of protecting New York City’s small businesses, the Council voted on July 29, 2021 to extend measures passed earlier in the pandemic to help keep these businesses afloat. The first of these bills would extend the laws that already prohibit third-party delivery platforms from charging restaurants more than 15% per order for delivery and more than 5% per order for all other fees, pushing the end date of these caps until February 17, 2022. The bill would also clarify which transaction fees are included in and exempted from these limits.
Relatedly, the Council voted on a bill to extend legislation that prohibits third-party delivery platforms from charging restaurants for telephone orders that did not result in a transaction, ensuring the protections remain in place until February 17, 2022, as well.
Other small business legislation includes a bill that would require third-party delivery platforms to share information related to delivery orders placed through their platform with restaurants that request it, including customers’ names, phone numbers, e-mail addresses, delivery addresses, and contents of the order. Customers would be able to opt out of their information being shared, and the bill would prohibit the restaurants from selling, renting or disclosing customer information without their express consent. Another bill would require third-party delivery platforms to identify phone numbers they have created for restaurants, which may incur a fee when used and are not the restaurants’ actual direct phone number.
The last of the small business bills is in relation to prohibiting third-party delivery platforms from listing restaurants on their app or website without a written agreement. The bill would also prohibit the delivery platforms from requiring the restaurants to compensate them or their independent contractors or agents for damages that occur after food or beverages leave the restaurant.
THIRD-PARTY DELIVERY APPS
Int. No. 2333-A, sponsored by Council Member Mark Gjonaj, will prohibit third-party delivery platforms from listing restaurants on their application or website and making deliveries from those restaurants, without a written agreement granting permission to do so. It would also prohibit the delivery platforms from requiring the restaurants, in these written agreements, to indemnify the platform or their independent contractors or agents for damage that occurs after food or beverages leave the restaurant. Violations of this bill would result in a civil penalty of not more than $500 per day per restaurant with respect to which a violation was committed. The Commissioner of the Department of Consumer and Worker Protection would be required to conduct outreach about the requirements of this bill. This bill would take effect 120 days after it becomes law.
Int. No. 2335-A, sponsored by Council Member Mark Gjonaj, will require the platforms to list a restaurant’s direct telephone number, if listing any telephone number for a restaurant. If the platform also includes an alternate number, they must provide a description of the telephone numbers that identifies each type of telephone number and any fees associated with their use. The Commissioner of the Department of Consumer and Worker Protection would be required to promulgate rules defining the content, size and location of the description. Violations of this bill would result in a civil penalty of not more than $500 per day per restaurant with respect to which violation was committed.
Int. No. 2311-A, sponsored by Council Member Keith Powers, will require the third-party delivery platforms to share information related to delivery orders placed through their website or mobile application with restaurants that request it. The information would consist of the customer’s name, phone number, e-mail address, delivery address and the contents of their orders. Customers would be able to opt out of the sharing of this information, and the service would be required to provide a clear disclosure to customers explaining what information would be shared with the restaurant. The restaurant fulfilling the customer’s order would be permitted to retain that information, which must be provided by the platform in a machine-readable format. Platforms could not limit the restaurants’ use of the information, but the bill would prohibit the restaurants from selling, renting or disclosing the information without express consent from the customer, and the customer would be able to withdraw their consent to using their information. Violations of this bill would be result in a civil penalty of not more than $500 per day per restaurant with respect to which a violation was committed. This bill would take effect on the same day that Int. No. 2333-A takes effect (which is 120 days after becoming law).
Int. No. 2356-A, sponsored by Council Member Mark Gjonaj, will extend Local Laws 51 and 87 of 2020, which prohibit third-party delivery platforms from charging restaurants for telephone orders that did not result in a transaction. Under the existing law, such charges are prohibited only when certain conditions apply. This bill would extend protections past the anticipated end date of those conditions until February 17, 2022. Violations of this bill would result in a civil penalty of not more than $500 per day per restaurant with respect to which a violation was committed. This bill would take effect immediately.
Int. No. 2359-A, sponsored by Council Members Francisco Moya and Mar Gjonaj, extend Local Laws 52 and 88 of 2020, which prohibit third-party delivery platforms from charging restaurants more than 15% per order for delivery and more than 5% per order for all other fees. This bill would instead prohibit such charges from the anticipated end date of those conditions until February 17, 2022. It would also clarify the types of transaction fees exempted from these limits on charges. Violations of this bill would result in a civil penalty of not more than $1000 per day per restaurant with respect to which a violation was committed. This bill would take effect immediately.
Related Images:
