Bill Text: CA AB502 | 2023-2024 | Regular Session | Amended

California Assembly Bill 502 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Food delivery platforms: disclosure.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-09-08 - Chaptered by Secretary of State - Chapter 164, Statutes of 2023. [AB502 Detail]

Download: California-2023-AB502-Amended.html

Amended IN Assembly March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 502

Introduced by Assembly Member Lee
(Coauthor: Assembly Member Wicks)

February 07, 2023

An act to amend Sections 22598 and 22599.1 of the Business and Professions Code, relating to food delivery.

LEGISLATIVE COUNSEL'S DIGEST

AB 502, as amended, Lee. Food delivery platforms: disclosure.

Existing law, the Fair Food Delivery Act of 2020, defines a “food delivery platform” as an online business that acts as an intermediary between consumers and multiple food facilities, as defined, to submit food orders and arrange for the delivery of the order. Existing law prohibits a food delivery platform from arranging for the delivery of an order from a food facility without first obtaining an agreement with the food facility.

Existing law requires a food delivery platform to disclose to the customer and the food facility a cost breakdown of each transaction, including, among other things, a notice, if applicable, that the food delivery platform charges a fee, commission, or cost to the food facility, unless the food facility directs that the food delivery platform disclose to customers the delivery fee charged to the food facility and each fee, commission, or cost charged to the food facility.
This bill would enact the Food Delivery Transparency Act which would, instead, require the food delivery platform to disclose any fee, commission, or cost the food delivery platform charges to the food facility, regardless of whether the food facility directs the food delivery platform disclose to customers fees, commissions, or costs charged to the food facility.

This bill would prohibit a listing website, as defined, from associating a telephone number or other method of direct communication with a food facility on their internet website or application that the listing website knows would result in a forwarded call, as defined. The bill would require the listing website to clearly and conspicuously, as defined, disclose if an order placed through a telephone number or other interface on their internet website or application may result in a fee, commission, or cost paid to a party other than the food facility, and identify that other party.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

This act shall be known, and may be cited, as the Food Delivery Transparency Act.

SEC. 2.

Section 22598 of the Business and Professions Code is amended to read:

22598.

As used in this chapter:

(a) “Clearly and conspicuously” means in a font no smaller than boldface, 14-point type, clearly separate from any other language on the page. For an audio disclosure, “clearly and conspicuously” means in a volume and cadence sufficient to be readily audible and understandable.

(b) “Food delivery platform” means an online business that acts as an intermediary between consumers and multiple food facilities to submit food orders from a consumer to a participating food facility, and to arrange for the delivery of the order from the food facility to the consumer.

(d) “Forwarded call” means a communication made by a consumer and intended for a food facility, by telephone call or other means of communication, that has been routed by a food delivery platform, or a routing service under the direction of the food delivery platform, to the intended food facility.

(e) “Listing website” means an internet website or application that lists, or produces through search results, telephone numbers associated with food facilities, and that has 100,000,000 or more unique monthly visitors.

(f) “Online order” means an order for food or beverage placed by a customer through or with the assistance of a food delivery platform, including, but not limited to, a telephone order, for delivery.

(g) “Purchase price” means the price, as listed on the menu, for the items contained in an online order. This definition does not include taxes or gratuities that may make up the total amount charged to the customer of an online order.

SEC. 3.

Section 22599.1 of the Business and Professions Code is amended to read:

22599.1.

(a) It is unlawful for a food delivery platform to do either of the following:

(1) Charge a customer any purchase price for food or beverage that is higher than the price posted on the food delivery platform’s internet website by the food facility at the time of the order.

(2) Retain any portion of amounts designated as a tip or gratuity. Any tip or gratuity for a delivery order shall be paid by a food delivery platform, in its entirety, to the person delivering the food or beverage. Any tip or gratuity for a pickup order shall be paid by a food delivery platform, in its entirety, to the food facility.

(b) A food delivery platform shall disclose to the customer and to the food facility an accurate, clearly identified, and itemized cost breakdown of each transaction, including, but not limited to, the following information:

(1) The purchase price of the food and beverage.

~~(2)Any fee, commission, or cost the food delivery platform charges to the food facility.~~
(2) A notice, if applicable, that the food delivery platform charges a fee, commission, or cost to the food facility, unless the food facility directs that the food delivery platform disclose to customers the delivery fee charged to the food facility and each fee, commission, or cost charged to the food facility.

(3) Each fee, commission, or cost charged to the customer by the food delivery platform.

(4) Any tip or gratuity.

(c) (1) A listing website shall not associate a telephone number or other method of direct communication with a food facility on their internet website or application if the listing website knows the use of that telephone number or other method of direct communication will result in a forwarded call.

(2) A listing website shall clearly and conspicuously disclose if an order placed through a telephone number or other interface on their internet website or application may result in a fee, commission, or cost paid to a party other than the food facility, and shall identify that other party.