Bill Text: NY S08816 | 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 2-0)

Status: (Introduced - Dead) 2020-07-20 - REFERRED TO RULES [S08816 Detail]

Download: New_York-2019-S08816-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8816

                    IN SENATE

                                      July 20, 2020
                                       ___________

        Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        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
    28  indemnify a third-party delivery  service,  any  independent  contractor

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16996-01-0
        S. 8816                             2

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