New York City Council Header
File #: Int 2333-2021    Version: Name: Prohibiting the inclusion of a food service establishment's products on a third-party food delivery platform without a written agreement authorizing such inclusion, and to provide penalties.
Type: Introduction Status: Enacted
Committee: Committee on Small Business
On agenda: 6/17/2021
Enactment date: 8/29/2021 Law number: 2021/091
Title: A Local Law to amend the administrative code of the city of New York, in relation to prohibiting the inclusion of a food service establishment's products on a third-party food delivery platform without a written agreement authorizing such inclusion, and to provide penalties
Sponsors: Mark Gjonaj , Bill Perkins, Robert E. Cornegy, Jr.
Council Member Sponsors: 3
Summary: This bill would prohibit third-party food delivery services – defined in this bill as any website, mobile application or other internet service that sells and offers delivery or pickup of food and beverages from a food service establishment owned by another entity – from listing food service establishments on their application or website and making deliveries from such establishments, without a written agreement between the delivery service and the establishment. It would also prohibit the delivery services from requiring the establishments, in these written agreements, to indemnify the delivery service or their independent contractors or agents for certain damage that occurs after food or beverages leave the establishment. Violations of this bill would be subject to a civil penalty of not more than $500 per day per establishment with respect to which a violation was committed. The Commissioner of the Department of Consumer and Worker Protection would be required to conduct outreach about the requirements of this bill.
Indexes: Agency Rule-making Required
Attachments: 1. Summary of Int. No. 2333-A, 2. Summary of Int. No. 2333, 3. Int. No. 2333, 4. June 17, 2021 - Stated Meeting Agenda with Links to Files, 5. Hearing Transcript - Stated Meeting 6-17-21, 6. Minutes of the Stated Meeting - June 17, 2021, 7. Committee Report 7/1/21, 8. Hearing Testimony 7/1/21, 9. Hearing Transcript 7/1/21, 10. Proposed Int. No. 2333-A - 7/22/21, 11. Committee Report 7/29/21, 12. Hearing Transcript 7/29/21, 13. Committee Report - Stated Meeting, 14. July 29, 2021 - Stated Meeting Agenda with Links to Files, 15. Hearing Transcript - Stated Meeting 7-29-21, 16. Minutes of the Stated Meeting - July 29, 2021, 17. Int. No. 2333-A (FINAL), 18. Fiscal Impact Statement, 19. Legislative Documents - Letter to the Mayor, 20. Local Law 91
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
8/30/2021AMark Gjonaj City Council Returned Unsigned by Mayor  Action details Meeting details Not available
8/29/2021AMark Gjonaj Administration City Charter Rule Adopted  Action details Meeting details Not available
7/29/2021AMark Gjonaj City Council Sent to Mayor by Council  Action details Meeting details Not available
7/29/2021AMark Gjonaj City Council Approved by CouncilPass Action details Meeting details Not available
7/29/2021*Mark Gjonaj Committee on Small Business Hearing Held by Committee  Action details Meeting details Not available
7/29/2021*Mark Gjonaj Committee on Small Business Amendment Proposed by Comm  Action details Meeting details Not available
7/29/2021*Mark Gjonaj Committee on Small Business Amended by Committee  Action details Meeting details Not available
7/29/2021AMark Gjonaj Committee on Small Business Approved by CommitteePass Action details Meeting details Not available
7/1/2021*Mark Gjonaj Committee on Small Business Hearing Held by Committee  Action details Meeting details Not available
7/1/2021*Mark Gjonaj Committee on Small Business Laid Over by Committee  Action details Meeting details Not available
6/17/2021*Mark Gjonaj City Council Referred to Comm by Council  Action details Meeting details Not available
6/17/2021*Mark Gjonaj City Council Introduced by Council  Action details Meeting details Not available

Int. No. 2333-A

 

By Council Members Gjonaj, Perkins and Cornegy

 

A Local Law to amend the administrative code of the city of New York, in relation to prohibiting the inclusion of a food service establishment's products on a third-party food delivery platform without a written agreement authorizing such inclusion, and to provide penalties

 

Be it enacted by the Council as follows:

Section 1. Subchapter 22 of chapter 5 of title 20 of the administrative code of the city of New York is amended by adding a new section 20-847.2 to read as follows:

§ 20-847.2 Unauthorized listings. a. Notwithstanding section 20-845, for the purposes of this section the term “third-party food delivery service” means any website, mobile application or other internet service that offers or arranges for the sale of food and beverages prepared by, and the same-day delivery or same-day pickup of food and beverages from, a food service establishment located in the city that is owned and operated by a different person.

b. A third-party food delivery service shall not list, advertise, promote, or sell a food service establishment’s products on, or arrange for the delivery of an order of such products through, the website, mobile application or other platform of such third-party food delivery service without a written agreement between such third-party delivery service and such food service establishment to include the food service establishment’s products on such website, mobile application or other platform.

c. An agreement executed in accordance with this section shall not include a provision, clause, or covenant that requires a food service establishment to indemnify a third-party food delivery service, any independent contractor acting on behalf of the third-party food delivery service, or any registered agent of the third-party food delivery service, for any damages or harm by an act or omission occurring after the food service establishment’s product leaves the place of business of the food service establishment. To the extent an agreement executed in accordance with this section contains such a provision, such provision shall be deemed void and unenforceable.

d. Outreach. No more than 30 days after the effective date of the local law that added this section, and continuing for 90 days thereafter, the commissioner shall conduct outreach in the designated citywide languages, as defined in section 23-1101, to alert food service establishments and third-party food delivery services to this section. Such outreach shall include, but need not be limited to, posting information on relevant agency websites and distributing information to food service establishments, third-party food delivery services and other relevant stakeholders.

§ 2. Subdivision a of section 20-848 of the administrative code of the city of New York, as amended by local law number 51 for the year 2020, is amended to read as follows:

a. Any person that violates any provision of [section 20-846] this subchapter or any rule promulgated pursuant thereto shall be subject to a civil penalty that shall not exceed [$1,000] $500 per violation[. Any person] except that a person that violates any provision of section [20-847] 20-846 or any rule promulgated pursuant thereto shall be subject to a civil penalty that shall not exceed [$500] $1000 per violation. Violations under this subchapter shall accrue on a daily basis for each day and for each food service establishment [charged a fee in] with respect to which a violation of this subchapter or any rule promulgated pursuant to this subchapter was committed.

§ 3. This local law takes effect 120 days after it becomes law, except that the commissioner of consumer and worker protection shall take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.

 

 

 

NLB/SJ

LS #17479

7/21/21 6:20 PM