NY State Senate Bill 2019-S8290

Archive: Last Bill Status - In Senate Committee Internet And Technology Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 06, 2020	referred to internet and technology

co-Sponsors

2019-S8290 (ACTIVE) - Details

Current Committee:: Senate Internet And Technology
Law Section:: General Business Law
Laws Affected:: Add §396-rrr, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:: S1547

2019-S8290 (ACTIVE) - Summary

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.

2019-S8290 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8290

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general business law, in relation to third-party
food delivery service fees

 
PURPOSE OF BILL:

To prohibit a third-party food delivery service from imposing on a food
service establishment a per-order fee of more than 10% of the purchase
price.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill adds a new section 396-rrr to Article 26 of the
general business law. Subsection 1 defines terms.

Subsection 2 law prohibits a third-party food delivery service from
imposing on a food service establishment a per-order fee of more than

10% of the purchase price.

Subsection 3 subjects a third-party food delivery service in violation
of this section or applicable results to a civil penalty of at least
$1,000.

Subsection 4 authorizes the Secretary of State to seek administrative
remedies under article 63 of the CPLR, and authorizes the Attorney
General to seek injunctive relief and monetary relief against those in
violation of this section.

Subsection 5 authorizes the Division of Consumer Protection, in conjunc-
tion with the Secretary of State, to promulgate regulations necessary to
implement this act.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

Through their outsized commission fees, third-party food delivery
services have negatively affected the viability of restaurants in New
York State.  Even though, according to one source, the average restau-
rant's profits range from only 3% to 9%, some third-party food delivery
services charge up to 40% in fees per order for orders placed through
the platform.  Some third-party food delivery services also may require
restaurants to charge the same price for items sold through that deliv-
ery service and those sold to dine-in customers or take out customers
who do not that delivery service, despite differing costs to the restau-
rant for these sales.  Limiting the fees charged by third-party food
delivery services ensures fairer and more transparent practices for New
York restaurants and consumers.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8290 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8290
 
                             I N  S E N A T E
 
                                May 6, 2020
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 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:

   Section 1. The general business law is amended by adding a new section
 396-rrr to read as follows:
   § 396-RRR. THIRD-PARTY FOOD DELIVERY SERVICE FEES.  1.    DEFINITIONS.
 FOR  THE  PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "COVERED ESTABLISHMENT" SHALL MEAN ANY FOOD SERVICE  ESTABLISHMENT
 THAT  OFFERS,  EITHER  DIRECTLY  OR  THROUGH A THIRD-PARTY FOOD DELIVERY
 SERVICE, IN A SINGLE COMMERCIAL TRANSACTION OVER THE PHONE OR  INTERNET,
 THE  SALE  AND SAME-DAY DELIVERY OF FOOD AND BEVERAGES TO CUSTOMERS FROM
 ONE OR MORE RETAIL LOCATIONS WITHIN THE STATE.
   (B) "FOOD SERVICE ESTABLISHMENT" SHALL MEAN ANY BUILDING, VEHICLE,  OR
 STRUCTURE,  OR ANY ROOM OR DIVISION IN A BUILDING, VEHICLE, OR STRUCTURE
 WHERE FOOD IS PREPARED, SERVED OR SOLD FOR IMMEDIATE CONSUMPTION  ON  OR
 IN  THE  VICINITY OF THE PREMISES, CALLED FOR OR TAKEN OUT BY CUSTOMERS,
 OR PREPARED PRIOR TO BEING DELIVERED TO ANOTHER  LOCATION  FOR  CONSUMP-
 TION.
   (C) "ONLINE ORDER" MEANS AN ORDER PLACED BY A CUSTOMER THROUGH A PLAT-
 FORM PROVIDED BY A THIRD-PARTY FOOD DELIVERY SERVICE.
   (D)  "PURCHASE  PRICE" MEANS THE MENU PRICE OF AN ONLINE ORDER, EXCLU-
 SIVE OF TAXES, GRATUITIES, AND ANY OTHER FEES THAT MAY MAKE UP THE TOTAL
 COST TO THE CUSTOMER OF AN ONLINE ORDER.
   (E) "THIRD-PARTY FOOD DELIVERY  SERVICE"  MEANS  ANY  WEBSITE,  MOBILE
 APPLICATION,  OR  OTHER INTERNET SERVICE THAT OFFERS OR ARRANGES FOR THE
 SALE AND SAME-DAY DELIVERY OR SAME-DAY  PICKUP  OF  FOOD  AND  BEVERAGES
 PREPARED  BY  NO  FEWER  THAN  TWENTY SEPARATELY OWNED AND OPERATED FOOD
 SERVICE ESTABLISHMENTS.
   2. PER-ORDER FEES. IT SHALL BE UNLAWFUL FOR THIRD-PARTY FOOD  DELIVERY
 SERVICES TO IMPOSE ON A COVERED ESTABLISHMENT A FEE PER ONLINE ORDER FOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16241-02-0

 S. 8290                             2
 
 THE  USE  OF  THEIR  SERVICES  THAT  TOTALS MORE THAN TEN PERCENT OF THE
 PURCHASE PRICE OF SUCH ONLINE ORDER.
   3. PENALTIES. ANY PERSON THAT VIOLATES SUBDIVISION TWO OF THIS SECTION
 OR  ANY  RULES OR REGULATIONS PROMULGATED PURSUANT TO THIS SECTION SHALL
 BE SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN ONE THOUSAND DOLLARS  PER
 VIOLATION. VIOLATIONS SHALL ACCRUE ON A DAILY BASIS FOR EACH DAY AND FOR
 EACH COVERED ESTABLISHMENT CHARGED A FEE IN VIOLATION OF THIS SECTION OR
 ANY RULE PROMULGATED PURSUANT TO THIS SECTION.
   4.  ENFORCEMENT.  THE SECRETARY OF STATE MAY SEEK ANY RELIEF AVAILABLE
 UNDER ARTICLE SIXTY-THREE OF THE CIVIL  PRACTICE  LAW  AND  RULES  IN  A
 PROCEEDING  AGAINST  ANY  PERSON  ALLEGED  TO  BE  IN  VIOLATION OF THIS
 SECTION. IN ADDITION, THE ATTORNEY GENERAL MAY BRING AN ACTION ON BEHALF
 OF THE PEOPLE OF THE STATE OF NEW YORK TO ENJOIN ACTS  IN  VIOLATION  OF
 THIS  SECTION  AND TO RECOVER ANY CIVIL PENALTIES UNLESS CIVIL PENALTIES
 HAVE BEEN PREVIOUSLY RECOVERED IN SUCH ADMINISTRATIVE PROCEEDINGS.
   5. RULES AND REGULATIONS. THE  DIVISION  OF  CONSUMER  PROTECTION,  IN
 CONJUNCTION  WITH THE SECRETARY OF STATE, SHALL PROMULGATE ANY RULES AND
 REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION.
   § 2. This act shall take effect immediately.

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Senate Bill S8290

Sponsored By

Archive: Last Bill Status - In Senate Committee Internet And Technology Committee

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co-Sponsors

2019-S8290 (ACTIVE) - Details

2019-S8290 (ACTIVE) - Summary

2019-S8290 (ACTIVE) - Sponsor Memo

2019-S8290 (ACTIVE) - Bill Text download pdf

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Sponsored By

Brian Kavanagh

Archive: Last Bill Status - In Senate Committee Internet And Technology Committee

Actions

co-Sponsors

Andrew Gounardes

2019-S8290 (ACTIVE) - Details

2019-S8290 (ACTIVE) - Summary

2019-S8290 (ACTIVE) - Sponsor Memo

2019-S8290 (ACTIVE) - Bill Text download pdf

Comments