District Of Columbia 2023 2023-2024 Regular Session

District Of Columbia Council Bill B25-0215 Engrossed / Bill

Filed 05/02/2023

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A BILL 1 
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25-215 3 
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5 
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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 
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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 
 
 
 
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 “(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 
 
 
 
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 (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 
 
 
 
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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 
 
 
 
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“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 
 
 
 
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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