1 ______________________________ 1 Councilmember Charles Allen 2 3 4 5 A BILL 6 7 _______ 8 9 10 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 11 12 ____________________ 13 14 15 To amend, on an emergency basis, due to congressional review, the Fair Meals Delivery Act of 16 2022, to restrict third-party meal delivery services from reducing a restaurant’s placement 17 within a given list of restaurants on a third-party food delivery platform based on the 18 level or percentage of commissions paid, to restrict third-party meal delivery services 19 from reducing a restaurant’s delivery radius based on the level or percentage of 20 commissions paid, to restrict third-party meal delivery services from limiting driver 21 availability based on the level or percentage of commissions paid, to require third-party 22 meal delivery services to disclose, in plain language, all fees, commissions, and charges 23 related to contracted services for covered restaurants, and to make other clarifying 24 changes. 25 26 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 27 act may be cited as the “Food Delivery Fees Transparency Congressional Review Emergency 28 Amendment Act of 2023”. 29 Sec. 2. The Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-30 292; D.C. Official Code § 48-651 et seq.), is amended as follows: 31 (a) The long title is amended by striking the word “platform” wherever it appears and 32 inserting the word “service” in its place. 33 (b) Section 2 (D.C. Official Code § 48-651) is amended as follows: 34 (1) Paragraph (1) is amended by striking the word “platform” and inserting the 35 word “service” in its place. 36 (2) Paragraph (2) is amended to read as follows: 37 2 “(2) “Core delivery service” means a service that lists a restaurant and makes the 38 restaurant discoverable on all third-party meal delivery platforms where a third-party meal 39 delivery service lists restaurants and facilitates or performs the delivery through employees or 40 independent contractors of the third-party meal delivery service of food or beverages from 41 restaurants to customers. The term “core delivery service” does not include any other service that 42 may be provided by a third-party meal delivery service to a restaurant, including advertising or 43 other promotional services, search engine optimization, business consulting, or credit card 44 processing.”. 45 (3) New paragraphs (2A) and (2B) are added to read as follows: 46 “(2A) “Covered restaurant” means a restaurant that elects to receive only core 47 delivery service. 48 “(2B) “Delivery radius” means the circular delivery area from around a restaurant 49 within which customers can search for and order from a restaurant.”. 50 (4) Paragraph (6) is amended by striking the phrase “by, and same-day delivery, 51 and the” and inserting the phrase “by, and provides the” in its place. 52 (5) A new paragraph (6A) is added to read as follows: 53 “(6A) “Third-party meal delivery service” means a person that operates a third-54 party meal delivery platform.”. 55 (c) Section 3 (D.C. Official Code § 48-652) is amended as follows: 56 (1) The section heading is amended by striking the phrase “meals delivery 57 platforms” and inserting the phrase ”meal delivery services” in its place. 58 (2) Subsection (a) is amended by striking the word “platform” both times it 59 appears and inserting the word “service” in its place. 60 3 (3) Subsection (b) is amended by striking the word “platform” both times it 61 appears and inserting the word “service” in its place. 62 (4) Subsection (c) is amended as follows: 63 (A) Paragraph (1) is amended by striking the word “platform” and 64 inserting the word “service” in its place. 65 (B) Paragraph (2) is amended by striking the word “platform” and 66 inserting the word “service” in its place. 67 (5) Subsection (d) is amended by striking the phrase “platform that” and inserting 68 the phrase “service that” in its place. 69 (6) New subsections (e), (f), and (g) are added to read as follows: 70 “(e) A third party meal delivery service shall not exclude any restaurant with whom the 71 third party meal delivery service has an agreement from a customer within 4 miles of a 72 restaurant. 73 “(f) A third-party meal delivery service shall not reduce the delivery radius of a covered 74 restaurant below 4 miles, based on the level or percentage of commissions paid. 75 “(g) A third-party meal delivery service shall not reduce the availability of delivery 76 drivers provided to a covered restaurant, based on the level or percentage of commissions paid; 77 provided, that this subsection shall not be construed to restrict a third-party meal delivery 78 service’s ability to use any method (that does not conflict with the restrictions in this subsection 79 or any other applicable law) to offer expedited or priority driver services to a covered restaurant 80 that pays for such services on a third-party meal delivery platform.”. 81 (d) Section 4 (D.C. Official Code § 48-653) is amended as follows: 82 (1) Strike the phrase “, the third-party meal delivery platform” and insert the 83 phrase “, the third-party meal delivery service” in its place. 84 4 (2) Strike the phrase “platform (“charges”)” and insert the phrase “service 85 (“charges”)” in its place. 86 (e) A new section 4a is added to read as follows: 87 “Sec. 4a. Restaurant disclosure requirement. 88 “A third-party meal delivery service shall: 89 “(1) Disclose to a covered restaurant, in plain language, the fees, commissions, 90 and charges associated with the contracted services in the agreement; and 91 “(2) Maintain all contracts with covered restaurants in its records for 3 years after 92 the date the agreement is executed.”. 93 (f) Section 5 (D.C. Official Code § 48-654) is amended as follows: 94 (1) Subsection (a) is amended as follows: 95 (A) Strike the phrase “third-party meal delivery platform” both times it 96 appears and insert the phrase “third-party meal delivery service” in its place. 97 (B) Strike the phrase “platform does” and insert the phrase “third-party 98 meal delivery service does” in its place. 99 (2) Subsection (b) is amended as follows: 100 (A) The lead-in language is amended by striking the word “platform” and 101 inserting the word “service” in its place. 102 (B) Paragraph (2) is amended by striking the word “platform” and 103 inserting the word “service” in its place. 104 (g) Section 6 (D.C. Official Code § 48-655) is amended to read as follows: 105 “Sec. 6. Third-party delivery platform; registration requirement. 106 “A third-party food delivery service operating in the District shall register with the 107 Department of Licensing and Consumer Protection.”. 108 5 Sec. 3. Fiscal impact statement. 109 The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 110 statement required by section 4a of the General Legislative Procedures Act of 1975, approved 111 October 16, 2006 (120 Stat. 2038; D.C. Official Code § l-301.47a). 112 Sec. 4. Effective date. 113 This act shall take effect following approval by the Mayor (or in the event of veto by the 114 Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 115 90 days, as provided for emergency acts of the Council of the District of Columbia in section 116 412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; 117 D.C. Official Code §1-204.12(a)). 118