Limiting, without expiration, the fees charged to food service establishments by third-party food delivery services.

A Local Law to amend the administrative code of the city of New York, in relation to limiting, without expiration, the fees charged to food service establishments by third-party food delivery services

This bill would add a new section in the subchapter added by Proposed Introduction 1897-A, prohibiting third-party food delivery services from charging food service establishments more than 15% per order for delivery and more than 5% per order for all other fees, except for transaction fees. The bill would prohibit third-party food delivery services from charging more than 3% per order for transaction fees, except that it would allow for a higher charge if the third-party food delivery service can provide proof that such higher charge was imposed upon the service by a credit card company or internet-based payment system to the Department of Consumer and Worker Protection and the relevant food service establishment if requested. This bill would also require the Department to submit a report to the Mayor and the Speaker of the Council every two years, beginning no later than September 30, 2023, recommending the maintenance or adjustment of this bill’s cap on fees, by looking at factors such as the effect of the cap on third-party food delivery services and food service establishments; whether the cap affects delivery workers’ wages and working conditions; the products provided by third-party food delivery services for listing, processing and marketing; and figures related to the bill’s subchapter such as the number of complaints and violations, total amount of penalties imposed and the amount of restitution recovered.