District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0215 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	ENGROSSED ORIGINAL
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6		-	AN ACT
7		-
8		-	______________
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10		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
11		-
12		-	____________________
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14		-
15		-	To amend, on a temporary basis, the Fair Meals Delivery Act of 2022 to prohibit a third-party
16		-	meal delivery service from excluding any restaurant with whom the third-party meal
17		-	delivery service has an agreement from a customer within 4 miles of a restaurant, to
18		-	restrict third-party meal delivery services from reducing a restaurant’s delivery radius
19		-	below 4 miles based on the level or percentage of commissions paid, to restrict third-
20		-	party meal delivery services from limiting driver availability based on the level or
21		-	percentage of commissions paid, to require third-party meal delivery services to disclose,
22		-	in plain language, all fees, commissions, and charges related to contracted services for
23		-	covered restaurants, and to make other clarifying changes.
24		-
25		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBI A, That this
26		-	act may be cited as the “Food Delivery Fees Transparency Temporary Amendment Act of 2023”.
27		-
28		-	Sec. 2. The Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-
29		-	292; D.C. Official Code § 48-651 et seq.), is amended as follows:
30		-	(a) The long title is amended by striking the word “platform” wherever it appears and
31		-	inserting the word “service” in its place.
32		-	(b) Section 2 (D.C. Official Code § 48-651) is amended as follows:
33		-	(1) Paragraph (1) is amended by striking the word “platform” and inserting the
34		-	word “service” in its place.
35		-	(2) Paragraph (2) is amended to read as follows:
36		-	“(2) “Core delivery service” means a service that lists a restaurant and makes the
37		-	restaurant discoverable on all third-party meal delivery platforms where a third-party meal
38		-	delivery service lists restaurants and facilitates or performs the delivery through employees or
39		-	independent contractors of the third-party meal delivery service of food or beverages from
40		-	restaurants to customers. The term “core delivery service” does not include any other service that
41		-	may be provided by a third-party meal delivery service to a restaurant, including advertising or
42		-	other promotional services, search engine optimization, business consulting, or credit card
43		-	processing.”.
44		-	(3) New paragraphs (2A) and (2B) are added to read as follows:
45		-	“(2A) “Covered restaurant” means a restaurant that elects to receive only core
46		-	delivery service. ENROLLED ORIGINAL
	6	+	A BILL 1
	7	+	2
	8	+	25-215 3
	9	+	4
	10	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
	11	+	6
	12	+	____________________ 7
	13	+	8
	14	+	9
	15	+	To amend, on a temporary basis, the Fair Meals Delivery Act of 2022, to restrict third-party meal 10
	16	+	delivery services from reducing a restaurant’s placement within a given list of restaurants 11
	17	+	on a third-party food delivery platform based on the level or percentage of commissions 12
	18	+	paid, to restrict third-party meal delivery services from reducing a restaurant’s delivery 13
	19	+	radius based on the level or percentage of commissions paid, to restrict third-party meal 14
	20	+	delivery services from limiting driver availability based on the level or percentage of 15
	21	+	commissions paid, to require third-party meal delivery services to disclose, in plain 16
	22	+	language, all fees, commissions, and charges related to contracted services for covered 17
	23	+	restaurants, and to make other clarifying changes. 18
	24	+	19
	25	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 20
	26	+	act may be cited as the “Food Delivery Fees Transparency Temporary Amendment Act of 2023”. 21
	27	+	Sec. 2. The Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-22
	28	+	292; D.C. Official Code § 48-651 et seq.), is amended as follows: 23
	29	+	(a) The long title is amended by striking the word “platform” wherever it appears and 24
	30	+	inserting the word “service” in its place. 25
	31	+	(b) Section 2 (D.C. Official Code § 48-651) is amended as follows: 26
	32	+	(1) Paragraph (1) is amended by striking the word “platform” and inserting the 27
	33	+	word “service” in its place. 28
	34	+	(2) Paragraph (2) is amended to read as follows: 29 ENGROSSED ORIGINAL
47	35
48	36
49	37
50	38		2
51		-	“(2B) “Delivery radius” means the circular delivery area from around a restaurant
52		-	within which customers can search for and order from a restaurant.”.
53		-	(4) Paragraph (6) is amended by striking the phrase “by, and same-day delivery,
54		-	and the” and inserting the phrase “by, and provides the” in its place.
55		-	(5) A new paragraph (6A) is added to read as follows:
56		-	“(6A) “Third-party meal delivery service” means a person that operates a third-
57		-	party meal delivery platform.”.
58		-	(c) Section 3 (D.C. Official Code § 48-652) is amended as follows:
59		-	(1) The section heading is amended by striking the phrase “meals delivery
60		-	platforms” and inserting the phrase ”meal delivery services” in its place.
61		-	(2) Subsection (a) is amended by striking the word “platform” both times it
62		-	appears and inserting the word “service” in its place.
63		-	(3) Subsection (b) is amended by striking the word “platform” both times it
64		-	appears and inserting the word “service” in its place.
65		-	(4) Subsection (c) is amended as follows:
66		-	(A) Paragraph (1) is amended by striking the word “platform” and
67		-	inserting the word “service” in its place.
68		-	(B) Paragraph (2) is amended by striking the word “platform” and
69		-	inserting the word “service” in its place.
70		-	(5) Subsection (d) is amended by striking the phrase “platform that” and inserting
71		-	the phrase “service that” in its place.
72		-	(6) New subsections (e), (f), and (g) are added to read as follows:
73		-	“(e) A third party meal delivery service shall not exclude any restaurant with whom the
74		-	third-party meal delivery service has an agreement from a customer within 4 miles of a
75		-	restaurant.
76		-	“(f) A third-party meal delivery service shall not reduce the delivery radius of a covered
77		-	restaurant below 4 miles, based on the level or percentage of commissions paid.
78		-	“(g) A third-party meal delivery service shall not reduce the availability of delivery
79		-	drivers provided to a covered restaurant, based on the level or percentage of commissions paid;
80		-	provided, that this subsection shall not be construed to restrict a third-party meal delivery
81		-	service’s ability to use any method (that does not conflict with the restrictions in this subsection
82		-	or any other applicable law) to offer expedited or priority driver services to a covered restaurant
83		-	that pays for such services on a third-party meal delivery platform.”.
84		-	(d) Section 4 (D.C. Official Code § 48-653) is amended as follows:
85		-	(1) Strike the phrase “, the third-party meal delivery platform” and insert the
86		-	phrase “, the third-party meal delivery service” in its place.
87		-	(2) Strike the phrase “platform (“charges”)” and inserting the phrase “service
88		-	(“charges”)” in its place.
89		-	(e) A new section 4a is added to read as follows:
90		-	“Sec. 4a. Restaurant disclosure requirement.
91		-	“A third-party meal delivery service shall: ENROLLED ORIGINAL
	39	+	“(2) “Core delivery service” means a service that lists a restaurant and makes the 30
	40	+	restaurant discoverable on all third-party meal delivery platforms where a third-party meal 31
	41	+	delivery service lists restaurants and facilitates or performs the delivery through employees or 32
	42	+	independent contractors of the third-party meal delivery service of food or beverages from 33
	43	+	restaurants to customers. The term “core delivery service” does not include any other service that 34
	44	+	may be provided by a third-party meal delivery service to a restaurant, including advertising or 35
	45	+	other promotional services, search engine optimization, business consulting, or credit card 36
	46	+	processing.”. 37
	47	+	(3) New paragraphs (2A) and (2B) are added to read as follows: 38
	48	+	“(2A) “Covered restaurant” means a restaurant that elects to receive only core 39
	49	+	delivery service. 40
	50	+	“(2B) “Delivery radius” means the circular delivery area from around a restaurant 41
	51	+	within which customers can search for and order from a restaurant.”. 42
	52	+	(4) Paragraph (6) is amended by striking the phrase “by, and same-day delivery, 43
	53	+	and the” and inserting the phrase “by, and provides the” in its place. 44
	54	+	(5) A new paragraph (6A) is added to read as follows: 45
	55	+	“(6A) “Third-party meal delivery service” means a person that operates a third-46
	56	+	party meal delivery platform.”. 47
	57	+	(c) Section 3 (D.C. Official Code § 48-652) is amended as follows: 48
	58	+	(1) The section heading is amended by striking the phrase “meals delivery 49
	59	+	platforms” and inserting the phrase ”meal delivery services” in its place. 50 ENGROSSED ORIGINAL
92	60
93	61
94	62
95	63		3
96		-	“(1) Disclose to a covered restaurant, in plain language, the fees, commissions,
97		-	and charges associated with the contracted services in the agreement; and
98		-	“(2) Maintain all contracts with covered restaurants in its records for 3 years after
99		-	the date the agreement is executed.”.
100		-	(f) Section 5 (D.C. Official Code § 48-654) is amended as follows:
101		-	(1) Subsection (a) is amended as follows:
102		-	(A) Strike the phrase “third-party meal delivery platform” both times it
103		-	appears and insert the phrase “third-party meal delivery service” in its place.
104		-	(B) Strike the phrase “platform does” and insert the phrase “third-party
105		-	meal delivery service does” in its place.
106		-	(2) Subsection (b) is amended as follows:
107		-	(A) The lead-in language is amended by striking the word “platform” and
108		-	inserting the word “service” in its place.
109		-	(B) Paragraph (2) is amended by striking the word “platform” and
110		-	inserting the word “service” in its place.
111		-	(g) Section 6 (D.C. Official Code § 48-655) is amended to read as follows:
112		-	“Sec. 6. Third-party delivery platform; registration requirement.
113		-	“A third-party food delivery service operating in the District shall register with the
114		-	Department of Licensing and Consumer Protection.”.
115		-
116		-	Sec. 3. Fiscal impact statement.
117		-	The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
118		-	statement required by section 4a of the General Legislative Procedures Act of 1975, approved
119		-	October 16, 2006 (120 Stat. 2038; D.C. Official Code § l-301.47a).
120		-
121		-	Sec. 4. Effective date.
122		-	(a) This act shall take effect following approval by the Mayor (or in the event of veto by
123		-	the Mayor, action by the Council to override the veto), a 30-day period of congressional review
124		-	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
125		-
126		-
127		-
128		-
129		-
130		-
131		-
132		-
133		-
134		-
135		-	ENROLLED ORIGINAL
	64	+	(2) Subsection (a) is amended by striking the word “platform” both times it 51
	65	+	appears and inserting the word “service” in its place. 52
	66	+	(3) Subsection (b) is amended by striking the word “platform” both times it 53
	67	+	appears and inserting the word “service” in its place. 54
	68	+	(4) Subsection (c) is amended as follows: 55
	69	+	(A) Paragraph (1) is amended by striking the word “platform” and 56
	70	+	inserting the word “service” in its place. 57
	71	+	(B) Paragraph (2) is amended by striking the word “platform” and 58
	72	+	inserting the word “service” in its place. 59
	73	+	(5) Subsection (d) is amended by striking the phrase “platform that” and inserting 60
	74	+	the phrase “service that” in its place. 61
	75	+	(6) New subsections (e), (f), and (g) are added to read as follows: 62
	76	+	“(e) A third party meal delivery service shall not exclude any restaurant with whom the 63
	77	+	third party meal delivery service has an agreement from a customer within 4 miles of a 64
	78	+	restaurant. 65
	79	+	“(e) A third-party meal delivery service shall not reduce the placement of a covered 66
	80	+	restaurant, in any page, list, or search results in which the covered restaurant is included, relative 67
	81	+	to other restaurants, based on the level or percentage of commissions paid; provided, that this 68
	82	+	subsection shall not be construed to restrict a third-party meal delivery service’s ability to use 69
	83	+	any method (that does not conflict with the restrictions in this subsection or any other applicable 70 ENGROSSED ORIGINAL
136	84
137	85
138	86
139	87		4
140		-	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of
141		-	Columbia Register.
142		-	(b) This act shall expire after 225 days of its having effect.
143		-
144		-
145		-	______________________________
146		-	Chairman
147		-	Council of the District of Columbia
	88	+	law) to determine the displaying and ordering of restaurants on a third-party meal delivery 71
	89	+	platform, including: 72
	90	+	“(1) Offering preferential listing to restaurants that pay for advertising or other 73
	91	+	promotional services; 74
	92	+	“(2) Displaying restaurants based on a particular customer’s search or purchase 75
	93	+	history, proximity to a customer’s location, or other similar factors; and 76
	94	+	“(3) Relying on an algorithm to implement paragraph (1) or (2) of this subsection. 77
	95	+	“(f) A third-party meal delivery service shall not reduce the delivery radius of a covered 78
	96	+	restaurant below 54 miles, based on the level or percentage of commissions paid. 79
	97	+	“(g) A third-party meal delivery service shall not reduce the availability of delivery 80
	98	+	drivers provided to a covered restaurant, based on the level or percentage of commissions paid; 81
	99	+	provided, that this subsection shall not be construed to restrict a third-party meal delivery 82
	100	+	service’s ability to use any method (that does not conflict with the restrictions in this subsection 83
	101	+	or any other applicable law) to offer expedited or priority driver services to a covered restaurant 84
	102	+	that pays for such services on a third-party meal delivery platform.”. 85
	103	+	(d) Section 4 (D.C. Official Code § 48-653) is amended as follows: 86
	104	+	(1) Strike the phrase “, the third-party meal delivery platform” and insert the 87
	105	+	phrase “, the third-party meal delivery service” in its place. 88
	106	+	(2) Strike the phrase “platform (“charges”)” and inserting the phrase “service 89
	107	+	(“charges”)” in its place. 90
	108	+	(e) A new section 4a is added to read as follows: 91 ENGROSSED ORIGINAL
148	109
149	110
150	111
	112	+	5
	113	+	“Sec. 4a. Restaurant disclosure requirement. 92
	114	+	“A third-party meal delivery service shall: 93
	115	+	“(1) Disclose to a covered restaurant, in plain language, the fees, commissions, 94
	116	+	and charges associated with the contracted services in the agreement; and 95
	117	+	“(2) Maintain all contracts with covered restaurants in its records for 3 years after 96
	118	+	the date the agreement is executed.”. 97
	119	+	(f) Section 5 (D.C. Official Code § 48-654) is amended as follows: 98
	120	+	(1) Subsection (a) is amended as follows: 99
	121	+	(A) Strike the phrase “third-party meal delivery platform” both times it 100
	122	+	appears and insert the phrase “third-party meal delivery service” in its place. 101
	123	+	(B) Strike the phrase “platform does” and insert the phrase “third-party 102
	124	+	meal delivery service does” in its place. 103
	125	+	(2) Subsection (b) is amended as follows: 104
	126	+	(A) The lead-in language is amended by striking the word “platform” and 105
	127	+	inserting the word “service” in its place. 106
	128	+	(B) Paragraph (2) is amended by striking the word “platform” and 107
	129	+	inserting the word “service” in its place. 108
	130	+	(g) Section 6 (D.C. Official Code § 48-655) is amended to read as follows: 109
	131	+	“Sec. 6. Third-party delivery platform; registration requirement. 110
	132	+	“A third-party food delivery service operating in the District shall register with the 111
	133	+	Department of Licensing and Consumer Protection.”. 112 ENGROSSED ORIGINAL
151	134
152	135
153		-	_________________________________
154		-	Mayor
155		-	District of Columbia
156	136
	137	+	6
	138	+	Sec. 3. Fiscal impact statement. 113
	139	+	The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 114
	140	+	statement required by section 4a of the General Legislative Procedures Act of 1975, approved 115
	141	+	October 16, 2006 (120 Stat. 2038; D.C. Official Code § l-301.47a). 116
	142	+	Sec. 4. Effective date. 117
	143	+	(a) This act shall take effect following approval by the Mayor (or in the event of veto by 118
	144	+	the Mayor, action by the Council to override the veto), a 30-day period of congressional review 119
	145	+	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 120
	146	+	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 121
	147	+	Columbia Register. 122
	148	+	(b) This act shall expire after 225 days of its having effect. 123