Bill Text: NY A10926 | 2019-2020 | General Assembly | Introduced

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Bill Title: Requires third-party delivery services to have a valid agreement with a merchant before they advertise, promote, or sell the merchant's products on their platform, and prohibits the inclusion of an indemnity clause in such agreements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-08-17 - referred to consumer affairs and protection [A10926 Detail]

Download: New_York-2019-A10926-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10926

                   IN ASSEMBLY

                                     August 17, 2020
                                       ___________

        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Abbate) --
          read once and referred  to  the  Committee  on  Consumer  Affairs  and
          Protection

        AN  ACT  to  amend  the general business law, in relation to third-party
          delivery services

          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 article
     2  39-H to read as follows:
     3                                ARTICLE 39-H
     4                        THIRD-PARTY DELIVERY SERVICES
     5  Section 900. Definitions.
     6          901. Agreement; indemnity; penalties.
     7    § 900. Definitions. As used in this article, the following terms shall
     8  have the following meanings:
     9    1.  "Agreement"  means  a  written  contractual  agreement  between  a
    10  merchant and a third-party delivery service authorizing the inclusion of
    11  the merchant's products on the third-party delivery platform.
    12    2. "Consumer" means a person, business, or other entity who places  an
    13  order for a merchant's products through a third-party delivery platform.
    14    3. "Merchant" means a restaurant or other retail entity.
    15    4.  "Third-party  delivery  service" means a company, organization, or
    16  other entity, other than a merchant, that provides delivery services  to
    17  consumers.
    18    5. "Third-party delivery platform" means the online or mobile platform
    19  of  the  third-party  delivery  service  on  which  a  consumer can view
    20  products available for sale and place an order for merchant products.
    21    § 901. Agreement; indemnity;  penalties.  1.  A  third-party  delivery
    22  service shall not advertise, promote, or sell a merchant's products on a
    23  third-party  delivery  platform  without  a  valid  agreement  with  the
    24  merchant authorizing the inclusion of the merchant's  products  on  such
    25  platform.
    26    2.  An  agreement  executed  in accordance with this section shall not
    27  include a provision, clause, or covenant that  requires  a  merchant  to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16996-01-0
        A. 10926                            2

     1  indemnify  a  third-party  delivery  service, any independent contractor
     2  acting on behalf of the third-party delivery service, or any  registered
     3  agent  of the third-party delivery service, for any damages or harm that
     4  may  occur  after the merchant's product leaves the place of business of
     5  the merchant. To the extent an agreement contains such a provision, such
     6  provision will be deemed void and unenforceable.
     7    3. A merchant included on a third-party delivery platform in violation
     8  of this section shall have the right to bring an action in  a  court  of
     9  competent  jurisdiction  for  damages,  penalties  as  set forth in this
    10  section, and injunctive relief. The prevailing party in any such  action
    11  shall be entitled to an award of reasonable attorneys' fees.
    12    4.  Any  person  that  violates any provision of this section shall be
    13  subject to a civil penalty of up to one thousand dollars per  violation.
    14  Each day a merchant included on a third-party delivery platform and each
    15  merchant included on a third-party delivery platform shall be considered
    16  a separate violation.
    17    §  2.  This  act shall take effect on the thirtieth day after it shall
    18  have become a law.