California Wants More Control Over Food Delivery Platforms

Lawmakers consider delivery fee cap, banning unapproved posting of restaurant menus.

June 30, 2020

SACRAMENTO, Calif.—The California State Assembly and state Senate are in session and advancing bills that will affect the food, beverage and hospitality industry, reports jdsupra.com.

State legislators have indicated interest in regulating food delivery platforms. Already several California cities, including San Francisco and Los Angeles, have capped the fees that delivery providers, such as Grubhub and Door Dash, can charge restaurants—at least for the duration of the current pandemic.

Restaurant owners don’t like food delivery platforms advertising their restaurants and posting their menus without obtaining permission. These concerns have been intensified with the growth of the food delivery industry.

The state Assembly on June 10 overwhelmingly voted in favor of Assembly Bill 2149, which would prohibit food delivery platforms from listing restaurants, posting menus or using the image of a restaurant without express written consent of the owner. Originally, the bill included a requirement that the delivery platform provide restaurants with all consumer data they collect; however, this part of the bill was struck due to concerns about privacy. The bill is now being considered by the state Senate.

The California Restaurant Association supports the measure. “The State Assembly didn’t just pass this bill—they moved it forward with an overwhelming ‘yes’ vote,” Jot Condie, who leads the association, said in a statement to the Sacramento Bee. “Could it be that most reasonable people recognize that a tech company should have permission from a local restaurant before listing its menu, brand, and service on a delivery app? We think so. And, today, California’s State Assembly sided with small, independent business owners.”

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