Food Delivery Platforms - - CA Business And Professions

Section § 22598

This section defines important terms used in the chapter related to food delivery services. It explains what 'clearly and conspicuously' means for written and audio disclosures. A 'food delivery platform' is an online business connecting consumers to various food facilities for ordering and delivery. 'Food facility' refers to any food business as defined elsewhere in related law. A 'forwarded call' is a call directed to a food facility through a delivery platform. The term 'listing website' describes sites with significant traffic that list food facility phone numbers. An 'online order' involves placing food orders via a delivery platform, including by phone. 'Purchase price' is simply the menu-listed price for ordered items, excluding additional charges.

As used in this chapter:

(a) “Clearly and conspicuously” means in a font no smaller than boldface, 14-point type, clearly separate from any other language on the page. For an audio disclosure, “clearly and conspicuously” means in a volume and cadence sufficient to be readily audible and understandable.

(b) “Food delivery platform” means an online business that acts as an intermediary between consumers and multiple food facilities to submit food and beverage orders from a consumer to a participating food facility, and to arrange for, or to complete, the delivery of the order from the food facility to the consumer.

(c) “Food facility” means a food facility, as defined in Section 113789 of the Health and Safety Code.

(d) “Forwarded call” means a communication made by a consumer and intended for a food facility, by telephone call or other means of communication, that has been routed by a food delivery platform, or a routing service under the direction of the food delivery platform, to the intended food facility.

(e) “Listing website” means an internet website or application that lists, or produces through search results, telephone numbers associated with food facilities, and that has 100,000,000 or more unique monthly visitors.

(f) “Online order” means an order for food or beverage placed by a customer through or with the assistance of a food delivery platform, including, but not limited to, a telephone order, for delivery.

(g)

(1) “Purchase price” means the price, as listed on the menu, for the items contained in an online order.

(2) “Purchase price” does not include taxes, fees, commissions, or gratuities that may make up the total amount charged to the customer of an online order.

food delivery platform food facility forwarded call listing website online order purchase price audio disclosure boldface 14-point type intermediary consumer orders menu price volume and cadence telephone order unique monthly visitors taxes and fees

(Amended by Stats. 2024, Ch. 898, Sec. 1. (SB 1490) Effective January 1, 2025.)

Section § 22599

This law says that food delivery companies need a clear agreement with a restaurant before they start taking orders and delivering meals for them. The companies must provide a way for restaurants to be removed from their platform quickly and to show customers any fees or commissions they're charging the restaurant. They also need to clearly inform restaurants about all fees, service plans, and details about how they handle errors and disputes. However, they don’t have to share any confidential or proprietary information. Additionally, they're allowed to offer bundled service deals.

(a) A food delivery platform shall not arrange for the delivery of an order from a food facility without first obtaining an agreement with the food facility expressly authorizing the food delivery platform to take orders and deliver meals prepared by the food facility.

(b)

(1) Subject to paragraph (2), a food delivery platform shall provide to a food facility a mechanism to do both of the following:

(A) Remove the food facility, including its name, address, logo, or menu listing, from the platform within three business days of receiving a request to be removed from the platform.

(B) Direct the food delivery platform to disclose to customers the delivery fee charged to the food facility and each fee, commission, or cost charged to the food facility, as provided in paragraph (2) of subdivision (b) of Section 22599.1.

(2) Nothing in this subdivision shall interfere with preexisting contractual obligations between a food delivery platform and a food facility.

(c)

(1) A food delivery platform shall inform a food facility of both of the following prior to signing an agreement:

(A) The fees charged by the food delivery platform for each service plan offered.

(B) The features included in each service plan, as applicable.

(2) A food delivery platform shall also inform a food facility of any change to the agreement referenced in this subdivision that is deemed material and applicable to the food facility.

(d) A food delivery platform shall inform a food facility of all of the following:

(1) How charges for customer order and delivery errors are calculated.

(2) How charges related to errors are allocated between the food delivery platform and the food facility.

(3) The process for food facilities to dispute charges related to errors, including whether disputes may be subject to automatic resolution.

(e) This section shall not require a food delivery platform to reveal information that is confidential, proprietary, or a trade secret.

(f) This section shall not prohibit offering bundled services at a single price.

food delivery platform restaurant agreement remove from platform disclosure of fees service plans fees and commissions customer order errors dispute process preexisting contracts confidential information bundled services automatic resolution

(Amended by Stats. 2024, Ch. 898, Sec. 2. (SB 1490) Effective January 1, 2025.)

Section § 22599.1

This law makes it illegal for food delivery apps to charge customers more than the price listed on their site. It also ensures that all tips given by customers go entirely to drivers or restaurants, depending on whether it's a delivery or pickup order. The law requires these apps to provide a clear breakdown of costs for every transaction, including food prices, fees, and tips. Additionally, it prevents listing websites from using contact methods that redirect customers without their knowledge and mandates disclosure of any extra fees from communications. Finally, these platforms must keep the restaurant and customer informed about order status, delivery method, timing, and delivery completion.

(a) It is unlawful for a food delivery platform to do either of the following:

(1) Charge a customer any purchase price for food or beverage that is higher than the price posted on the food delivery platform’s internet website by the food facility at the time of the order.

(2) Retain any portion of amounts designated as a tip or gratuity. Any tip or gratuity for a delivery order shall be paid by a food delivery platform, in its entirety, to the person delivering the food or beverage. Any tip or gratuity for a pickup order shall be paid by a food delivery platform, in its entirety, to the food facility.

(b) A food delivery platform shall prominently disclose to the customer and to the food facility an accurate, clearly identified, and itemized cost breakdown of each transaction, including, but not limited to, all of the following information:

(1) The purchase price of the food and beverage.

(2) A notice, if applicable, that the food delivery platform charges a fee, commission, or cost to the food facility, unless the food facility directs that the food delivery platform disclose to customers the delivery fee charged to the food facility and each fee, commission, or cost charged to the food facility.

(3) Each fee, commission, and any other cost charged to the customer by the food delivery platform.

(4) Any tip or gratuity payable to the delivery driver or food facility.

(c)

(1) A listing website shall not associate a telephone number or other method of direct communication with a food facility on the listing website’s internet website or application if the listing website knows the use of that telephone number or other method of direct communication will result in a forwarded call.

(2) A listing website shall clearly and conspicuously disclose if an order placed through a telephone number or other interface on the listing website’s internet website or application may result in a fee, commission, or cost paid to a party other than the food facility and shall identify that other party.

(d) A food delivery platform shall clearly and regularly disclose to the food facility and the customer the status of the order, including all of the following:

(1) The method of delivery.

(2) The anticipated date and time of the delivery of the order.

(3) Confirmation that the order has been successfully delivered or that the delivery cannot be completed.

food delivery platform purchase price tip or gratuity itemized cost breakdown transaction disclosure telephone number forwarding order status delivery method delivery timing listing website fee commission order confirmation food facility tip allocation communication fee

(Amended by Stats. 2024, Ch. 898, Sec. 3. (SB 1490) Effective January 1, 2025.)

Section § 22599.3

This law requires food delivery platforms to show customers the driver's first name and photo when their delivery is on the way. However, this rule doesn't apply if the restaurant uses its own delivery driver or if the order was placed directly through the restaurant's site or a third party not associated with the delivery platform. These requirements will be effective starting March 1, 2025.

(a) Unless exempt pursuant to subdivision (b), a food delivery platform shall provide all of the following information to a customer on its online-enabled application or platform at the time the customer is notified their purchase is out for delivery:

(1) The driver’s first name.

(2) A picture of the driver.

(b) This section shall not apply to an order if either of the following apply:

(1) The food facility uses its own delivery driver for delivery of the order.

(2) The food facility receives the order through the food facility’s internet website or a third party that is not the food delivery platform.

(c) This section shall take effect on March 1, 2025.

food delivery platforms driver's first name driver's picture customer notification own delivery driver third-party orders online-enabled application delivery information order exemptions March 1 2025

(Added by Stats. 2024, Ch. 84, Sec. 1. (AB 375) Effective January 1, 2025. Operative March 1, 2025, by its own provisions.)

Section § 22599.6

This law says that if any part of this chapter is found to be invalid or unenforceable, the rest of the chapter remains in effect. It ensures that the valid parts can still be used and applied even if one part is struck down.

The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

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(Added by Stats. 2021, Ch. 513, Sec. 3. (AB 286) Effective January 1, 2022.)