Bill Text: NY S01547 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to capping third-party food delivery service fees so that such fees cannot exceed ten percent of the purchase price of an online order.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CONSUMER PROTECTION [S01547 Detail]

Download: New_York-2021-S01547-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1547

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 13, 2021
                                       ___________

        Introduced  by Sens. KAVANAGH, KAMINSKY -- read twice and ordered print-
          ed, and when printed to be committed  to  the  Committee  on  Consumer
          Protection

        AN  ACT  to  amend  the general business law, in relation to third-party
          food delivery service fees

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  396-rrr to read as follows:
     3    §  396-rrr.  Third-party  food delivery service fees. 1.  Definitions.
     4  For the purposes of this section, the following  terms  shall  have  the
     5  following meanings:
     6    (a)  "Covered establishment" shall mean any food service establishment
     7  that offers, either directly or  through  a  third-party  food  delivery
     8  service,  in a single commercial transaction over the phone or internet,
     9  the sale and same-day delivery of food and beverages to  customers  from
    10  one or more retail locations within the state.
    11    (b)  "Food service establishment" shall mean any building, vehicle, or
    12  structure, or any room or division in a building, vehicle, or  structure
    13  where  food  is prepared, served or sold for immediate consumption on or
    14  in the vicinity of the premises, called for or taken out  by  customers,
    15  or  prepared  prior  to being delivered to another location for consump-
    16  tion.
    17    (c) "Online order" means an order placed by a customer through a plat-
    18  form provided by a third-party food delivery service.
    19    (d) "Purchase price" means the menu price of an online  order,  exclu-
    20  sive of taxes, gratuities, and any other fees that may make up the total
    21  cost to the customer of an online order.
    22    (e)  "Third-party  food  delivery  service"  means any website, mobile
    23  application, or other internet service that offers or arranges  for  the
    24  sale  and  same-day  delivery  or  same-day pickup of food and beverages

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06459-01-1
        S. 1547                             2

     1  prepared by no fewer than twenty  separately  owned  and  operated  food
     2  service establishments.
     3    2.  Per-order fees. It shall be unlawful for third-party food delivery
     4  services to impose on a covered establishment a fee per online order for
     5  the use of their services that totals  more  than  ten  percent  of  the
     6  purchase price of such online order.
     7    3. Penalties. Any person that violates subdivision two of this section
     8  or  any  rules or regulations promulgated pursuant to this section shall
     9  be subject to a civil penalty of not less than one thousand dollars  per
    10  violation. Violations shall accrue on a daily basis for each day and for
    11  each covered establishment charged a fee in violation of this section or
    12  any rule promulgated pursuant to this section.
    13    4.  Enforcement.  The secretary of state may seek any relief available
    14  under article sixty-three of the civil  practice  law  and  rules  in  a
    15  proceeding  against  any  person  alleged  to  be  in  violation of this
    16  section. In addition, the attorney general may bring an action on behalf
    17  of the people of the state of New York to enjoin acts  in  violation  of
    18  this  section  and to recover any civil penalties unless civil penalties
    19  have been previously recovered in such administrative proceedings.
    20    5. Rules and regulations. The  division  of  consumer  protection,  in
    21  conjunction  with the secretary of state, shall promulgate any rules and
    22  regulations necessary to implement this section.
    23    § 2. This act shall take effect immediately.