ENGROSSED ORIGINAL 1 A BILL 1 2 25-215 3 4 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5 6 ____________________ 7 8 9 To amend, on a temporary basis, the Fair Meals Delivery Act of 2022, to restrict third-party meal 10 delivery services from reducing a restaurant’s placement within a given list of restaurants 11 on a third-party food delivery platform based on the level or percentage of commissions 12 paid, to restrict third-party meal delivery services from reducing a restaurant’s delivery 13 radius based on the level or percentage of commissions paid, to restrict third-party meal 14 delivery services from limiting driver availability based on the level or percentage of 15 commissions paid, to require third-party meal delivery services to disclose, in plain 16 language, all fees, commissions, and charges related to contracted services for covered 17 restaurants, and to make other clarifying changes. 18 19 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 20 act may be cited as the “Food Delivery Fees Transparency Temporary Amendment Act of 2023”. 21 Sec. 2. The Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-22 292; D.C. Official Code § 48-651 et seq.), is amended as follows: 23 (a) The long title is amended by striking the word “platform” wherever it appears and 24 inserting the word “service” in its place. 25 (b) Section 2 (D.C. Official Code § 48-651) is amended as follows: 26 (1) Paragraph (1) is amended by striking the word “platform” and inserting the 27 word “service” in its place. 28 (2) Paragraph (2) is amended to read as follows: 29 ENGROSSED ORIGINAL 2 “(2) “Core delivery service” means a service that lists a restaurant and makes the 30 restaurant discoverable on all third-party meal delivery platforms where a third-party meal 31 delivery service lists restaurants and facilitates or performs the delivery through employees or 32 independent contractors of the third-party meal delivery service of food or beverages from 33 restaurants to customers. The term “core delivery service” does not include any other service that 34 may be provided by a third-party meal delivery service to a restaurant, including advertising or 35 other promotional services, search engine optimization, business consulting, or credit card 36 processing.”. 37 (3) New paragraphs (2A) and (2B) are added to read as follows: 38 “(2A) “Covered restaurant” means a restaurant that elects to receive only core 39 delivery service. 40 “(2B) “Delivery radius” means the circular delivery area from around a restaurant 41 within which customers can search for and order from a restaurant.”. 42 (4) Paragraph (6) is amended by striking the phrase “by, and same-day delivery, 43 and the” and inserting the phrase “by, and provides the” in its place. 44 (5) A new paragraph (6A) is added to read as follows: 45 “(6A) “Third-party meal delivery service” means a person that operates a third-46 party meal delivery platform.”. 47 (c) Section 3 (D.C. Official Code § 48-652) is amended as follows: 48 (1) The section heading is amended by striking the phrase “meals delivery 49 platforms” and inserting the phrase ”meal delivery services” in its place. 50 ENGROSSED ORIGINAL 3 (2) Subsection (a) is amended by striking the word “platform” both times it 51 appears and inserting the word “service” in its place. 52 (3) Subsection (b) is amended by striking the word “platform” both times it 53 appears and inserting the word “service” in its place. 54 (4) Subsection (c) is amended as follows: 55 (A) Paragraph (1) is amended by striking the word “platform” and 56 inserting the word “service” in its place. 57 (B) Paragraph (2) is amended by striking the word “platform” and 58 inserting the word “service” in its place. 59 (5) Subsection (d) is amended by striking the phrase “platform that” and inserting 60 the phrase “service that” in its place. 61 (6) New subsections (e), (f), and (g) are added to read as follows: 62 “(e) A third party meal delivery service shall not exclude any restaurant with whom the 63 third party meal delivery service has an agreement from a customer within 4 miles of a 64 restaurant. 65 “(e) A third-party meal delivery service shall not reduce the placement of a covered 66 restaurant, in any page, list, or search results in which the covered restaurant is included, relative 67 to other restaurants, based on the level or percentage of commissions paid; provided, that this 68 subsection shall not be construed to restrict a third-party meal delivery service’s ability to use 69 any method (that does not conflict with the restrictions in this subsection or any other applicable 70 ENGROSSED ORIGINAL 4 law) to determine the displaying and ordering of restaurants on a third-party meal delivery 71 platform, including: 72 “(1) Offering preferential listing to restaurants that pay for advertising or other 73 promotional services; 74 “(2) Displaying restaurants based on a particular customer’s search or purchase 75 history, proximity to a customer’s location, or other similar factors; and 76 “(3) Relying on an algorithm to implement paragraph (1) or (2) of this subsection. 77 “(f) A third-party meal delivery service shall not reduce the delivery radius of a covered 78 restaurant below 54 miles, based on the level or percentage of commissions paid. 79 “(g) A third-party meal delivery service shall not reduce the availability of delivery 80 drivers provided to a covered restaurant, based on the level or percentage of commissions paid; 81 provided, that this subsection shall not be construed to restrict a third-party meal delivery 82 service’s ability to use any method (that does not conflict with the restrictions in this subsection 83 or any other applicable law) to offer expedited or priority driver services to a covered restaurant 84 that pays for such services on a third-party meal delivery platform.”. 85 (d) Section 4 (D.C. Official Code § 48-653) is amended as follows: 86 (1) Strike the phrase “, the third-party meal delivery platform” and insert the 87 phrase “, the third-party meal delivery service” in its place. 88 (2) Strike the phrase “platform (“charges”)” and inserting the phrase “service 89 (“charges”)” in its place. 90 (e) A new section 4a is added to read as follows: 91 ENGROSSED ORIGINAL 5 “Sec. 4a. Restaurant disclosure requirement. 92 “A third-party meal delivery service shall: 93 “(1) Disclose to a covered restaurant, in plain language, the fees, commissions, 94 and charges associated with the contracted services in the agreement; and 95 “(2) Maintain all contracts with covered restaurants in its records for 3 years after 96 the date the agreement is executed.”. 97 (f) Section 5 (D.C. Official Code § 48-654) is amended as follows: 98 (1) Subsection (a) is amended as follows: 99 (A) Strike the phrase “third-party meal delivery platform” both times it 100 appears and insert the phrase “third-party meal delivery service” in its place. 101 (B) Strike the phrase “platform does” and insert the phrase “third-party 102 meal delivery service does” in its place. 103 (2) Subsection (b) is amended as follows: 104 (A) The lead-in language is amended by striking the word “platform” and 105 inserting the word “service” in its place. 106 (B) Paragraph (2) is amended by striking the word “platform” and 107 inserting the word “service” in its place. 108 (g) Section 6 (D.C. Official Code § 48-655) is amended to read as follows: 109 “Sec. 6. Third-party delivery platform; registration requirement. 110 “A third-party food delivery service operating in the District shall register with the 111 Department of Licensing and Consumer Protection.”. 112 ENGROSSED ORIGINAL 6 Sec. 3. Fiscal impact statement. 113 The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 114 statement required by section 4a of the General Legislative Procedures Act of 1975, approved 115 October 16, 2006 (120 Stat. 2038; D.C. Official Code § l-301.47a). 116 Sec. 4. Effective date. 117 (a) This act shall take effect following approval by the Mayor (or in the event of veto by 118 the Mayor, action by the Council to override the veto), a 30-day period of congressional review 119 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 120 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 121 Columbia Register. 122 (b) This act shall expire after 225 days of its having effect. 123