California Business and Professions Code 22599.1 – (a) It is unlawful for a food delivery platform to do either of …
(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.
Terms Used In California Business and Professions Code 22599.1
- Clearly and conspicuously: means in a font no smaller than boldface, 14-point type, clearly separate from any other language on the page. See California Business and Professions Code 22598
- Food delivery platform: means an online business that acts as an intermediary between consumers and multiple food facilities to submit food orders from a consumer to a participating food facility, and to arrange for the delivery of the order from the food facility to the consumer. See California Business and Professions Code 22598
- Food facility: means a food facility, as defined in §. See California Business and Professions Code 22598
- 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. See California Business and Professions Code 22598
- 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. See California Business and Professions Code 22598
- Purchase price: means the price, as listed on the menu, for the items contained in an online order. See California Business and Professions Code 22598
(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 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, 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, or cost charged to the customer by the food delivery platform.
(4) Any tip or gratuity.
(c) (1) A listing website shall not associate a telephone number or other method of direct communication with a food facility on their 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 their 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.
(Amended by Stats. 2023, Ch. 164, Sec. 3. (AB 502) Effective January 1, 2024.)