The New York City Council - File #: Int 2390-2021

• File #: Int 2390-2021
• Version: *
• Name: Limiting, without expiration, the fees charged to food service establishments by third-party food delivery services.
• Type: Introduction
• Status: Enacted
• Committee: Committee on Small Business
• On agenda: 8/26/2021
• Enactment date: 9/26/2021
• Law number: 2021/103
• Title: 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
• Sponsors: Francisco P. Moya, Mark Gjonaj , James F. Gennaro
• Council Member Sponsors: 3
• Summary: 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.
• Indexes: Report Required

Date	Ver.	Prime Sponsor	Action By	Action	Result
9/27/2021	*	Francisco P. Moya	City Council	Returned Unsigned by Mayor
9/26/2021	*	Francisco P. Moya	Administration	City Charter Rule Adopted
8/26/2021	*	Francisco P. Moya	City Council	Sent to Mayor by Council
8/26/2021	*	Francisco P. Moya	City Council	Approved by Council	Pass
8/26/2021	*	Francisco P. Moya	City Council	Referred to Comm by Council
8/26/2021	*	Francisco P. Moya	City Council	Introduced by Council
8/26/2021	*	Francisco P. Moya	Committee on Small Business	Hearing on P-C Item by Comm
8/26/2021	*	Francisco P. Moya	Committee on Small Business	Amendment Proposed by Comm
8/26/2021	*	Francisco P. Moya	Committee on Small Business	Amended by Committee
8/26/2021	*	Francisco P. Moya	Committee on Small Business	P-C Item Approved by Comm	Pass

Int. No. 2390

By Council Members Moya, Gjonaj and Gennaro

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

Be it enacted by the Council as follows:

Section 1. Subchapter 36 of chapter 2 of title 20 of the administrative code of the city of New York, as added by a local law of the city of New York for the year 2021, relating to the licensing of third-party food delivery services, and to repealing subchapter 22 of chapter 5 of title 20 of the administrative code of the city of New York, relating to third-party food delivery services, as proposed in introduction number 1897-A for the year 2020, is amended by adding a new section 20-563.3 to read as follows:

§ 20-563.3 Fee caps. a. It shall be unlawful for a third-party food delivery service to charge a food service establishment a delivery fee that totals more than 15% of the purchase price of each online order.

b. It shall be unlawful for a third-party food delivery service to charge a food service establishment any fee or fees, other than a delivery fee and a transaction fee, for the use of their service that totals more than 5% of the purchase price of each online order.

c. It shall be unlawful for a third-party food delivery service to charge a food service establishment a transaction fee that totals more than 3% of the purchase price of each online order, provided however that a third-party food delivery service may charge a food service establishment a transaction fee of more than 3% of the purchase price of an online order if: (i) such transaction fee is charged to the food service establishment in the same amount as the charge imposed upon the third-party food delivery service for such online order, and (ii) such third-party food delivery service can provide proof of such charge imposed upon it to both the department and the relevant food service establishment upon request.

d. No later than September 30, 2023, and every two years thereafter, the commissioner shall submit to the speaker of the council and the mayor a report on the fee cap pursuant to this section, which shall include but not be limited to recommendations related to either the maintenance or adjustment of the fee cap as set forth in this section, in consideration of factors from the immediately preceding two years, such as:

1. The effect of the cap on third-party food delivery services and food service establishments;

2. Whether the cap affects wages and working conditions for persons who deliver food or beverages for third-party food delivery services;

3. Products that third-party food delivery services offer to food service establishments for listing, processing and marketing;

4. The number of complaints made to the department related to the alleged violations of this subchapter and the number of violations issued under this subchapter;

5. The total amount of penalties imposed as a result of violations of this subchapter; and

6. The amount of restitution recovered on behalf of food service establishments pursuant to this subchapter.

§ 2. This local law takes effect on the same date as a local law amending the administrative code of the city of New York, relating to the licensing of third-party food delivery services, and to repealing subchapter 22 of chapter 5 of title 20 of the administrative code of the city of New York, relating to third-party food delivery services as proposed in introduction number 1897-A for the year 2020, takes effect, except that the commissioner of consumer and worker protection may take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.

SJ

LS #17999

8/18/21 10:10 PM