S T A T E O F N E W Y O R K
________________________________________________________________________
6109
2021-2022 Regular Sessions
I N S E N A T E
April 12, 2021
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to disclosure of
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09427-01-1
S. 6109 2
PREPARED BY NO FEWER THAN TWENTY SEPARATELY OWNED AND OPERATED FOOD
SERVICE ESTABLISHMENTS.
2. PER-ORDER FEES. EVERY THIRD-PARTY FOOD DELIVERY SERVICE SHALL
DISCLOSE TO CUSTOMERS THE PERCENTAGE OF THE PURCHASE PRICE OF ONLINE
ORDERS THAT IS RECEIVED BY SUCH SERVICE.
3. PENALTIES. ANY THIRD-PARTY FOOD DELIVERY SERVICE WHICH FAILS TO
DISCLOSE THEIR FEES AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION SHALL
BE SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN ONE THOUSAND DOLLARS PER
VIOLATION.
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.