[Adopted 11-21-1984 by Ord. No. 61]
[Adopted 5-19-2021 by L.L. No. 2-2022]
For the purposes of this article, the following terms shall
have the following meanings:
DELIVERY FEE
A fee charged by a third-party food delivery service for
providing a food service establishment with a service that delivers
food from such establishment to customers. The term does not include
any other fee that may be charged by a third-party food delivery service
to a food service establishment, such as fees for listing or advertising
the food service establishment on the third-party food delivery service
platform or fees related to processing the online order.
FOOD SERVICE ESTABLISHMENT
A place where food is provided for individual portion service
directly to the consumer whether such food is provided free of charge
or sold, and whether consumption occurs on or off the premises or
is provided from a pushcart, stand or vehicle.
ONLINE ORDER
Any order placed by a customer through or with the assistance
of a platform provided by a third-party food delivery service, including
a telephone order.
PURCHASE PRICE
The total price of the items contained in an online order
that are listed on the menu of the food service establishment where
such order is placed. Such term does not include taxes, gratuities
and any other fees that may make up the total cost to the customer
of an online order.
THIRD-PARTY FOOD DELIVERY SERVICE
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, no fewer than 20 food service establishments located in the
state that are owned and operated by different persons.
Notwithstanding any other law, rule or regulation:
A. No third-party food delivery service shall 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 permitted under Subsection
A of this section, for the use of services provided by such third-party delivery service that is greater than 5% of the purchase price of each online order, provided that such cap shall not apply to a credit card fee that is charged to the third-party food delivery service and is charged in the same amount by the third-party food delivery service to such food service establishment;
C. Any fee or other charges from a third-party food delivery service to a food service establishment beyond such maximum fee of 5% per order and a credit card fee pursuant to Subsection
B of this section, and a delivery fee collected pursuant to Subsection
A of this section, shall be unlawful; and
D. No third-party food delivery service shall reduce the compensation,
including but not limited to, any tip or gratuity, paid to any worker,
as a result of compliance with the provisions of this section.
Any person who violates any provision of this article shall,
for a first conviction thereof, be subject to a fine of not more than
$300; for a conviction of a second violation, both of which were committed
within a period of 18 months, such person shall be punished by a fine
of not more than $600; and upon the conviction of a third or subsequent
violation, all of which were committed within a period of 18 months,
such person shall be punished by a fine of not more than $900.
Should any word, section, clause, paragraph, sentence, part
or provision of this article be declared invalid by a court of competent
jurisdiction, such determination shall not affect the validity of
any other part of this article.