Bill Text: NY S01547 | 2021-2022 | General Assembly | Introduced
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
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. LBD06459-01-1S. 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.
