District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill PR25-0172 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ENROLLED ORIG INAL
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	3	+	_____________________________ 1
	4	+	Councilmember Charles Alle n 2
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	9	+	A PROPOSED RESOLUTION 7
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	11	+	_________________ 9
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	13	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 11
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	15	+	______________ 13
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	18	+	To declare the existence of an emergency with respect to the need to amend the Fair Meals 16
	19	+	Delivery Act of 2022 to restrict third -party meal delivery services from reducing a 17
	20	+	restaurant’s placement within a given list of restaurants on a third- party food delivery 18
	21	+	platform based on the level or percentage of commissions paid, and to make other 19
	22	+	clarifying changes. 20
	23	+	21
	24	+	RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 22
	25	+	resolution may be cited as the “Food Delivery Fees Transparency Emergency Declaration 23
	26	+	Resolution of 2023”. 24
	27	+	Sec. 2. (a) On December 20, 2022, the Council passed the Fair Meals Delivery Act of 25
	28	+	2022, effective March 10, 2023 (D.C. Law 24- 292; D.C. Official Code § 48-651 et seq.) (“Act”). 26
	29	+	(b) The Act limits the total fees charged to restaurants by a third-party meal delivery 27
	30	+	platform to no more than 15% of the purchase price of the online order. This limitation does not 28
	31	+	apply if a third- party delivery platform offers all restaurants the option to obtain core delivery 29
	32	+	service for a total fee that is no more than 15% of the purchase price of the online order without 30
	33	+	requiring the purchase of additional services and notifies all restaurants that have an existing 31
	34	+	agreement with the third-party meal delivery platform of the option. 32
	35	+	(c) Third-party meal delivery services have announced that they have notified all 33
	36	+	restaurants on their platforms of existing agreements surrounding the current service option, as 34 2
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9		-	A RESOLUTION
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11		-	25-132
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13		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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15		-	May 2, 2023
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17		-
18		-	To declare the existence of an emergency with respect to the need to amend the Fair Meals
19		-	Delivery Act of 2022 to prohibit a third-party meal delivery service from excluding any
20		-	restaurant with whom the third-party meal delivery service has an agreement from a
21		-	customer within 4 miles of a restaurant, to restrict third-party meal delivery services from
22		-	reducing a restaurant’s delivery radius below 4 miles based on the level or percentage of
23		-	commissions paid, to restrict third-party meal delivery services from limiting driver
24		-	availability based on the level or percentage of commissions paid, to require third-party
25		-	meal delivery services to disclose, in plain language, all fees, commissions, and charges
26		-	related to contracted services for covered restaurants, and to make other clarifying
27		-	changes.
28		-
29		-	RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
30		-	resolution may be cited as the “Food Delivery Fees Transparency Emergency Declaration
31		-	Resolution of 2023”.
32		-
33		-	Sec. 2. (a) On December 20, 2022, the Council passed the Fair Meals Delivery Act of
34		-	2022, effective March 10, 2023 (D.C. Law 24-292; D.C. Official Code § 48-651 et seq.) (“Act”).
35		-	(b) The Act limits the total fees charged to restaurants by a third-party meal delivery
36		-	platform to no more than 15% of the purchase price of the online order. This limitation does not
37		-	apply if a third-party delivery platform offers all restaurants the option to obtain core delivery
38		-	service for a total fee that is no more than 15% of the purchase price of the online order without
39		-	requiring the purchase of additional services and notifies all restaurants that have an existing
40		-	agreement with the third-party meal delivery platform of the option.
41		-	(c) Third-party meal delivery services have announced that they have notified all
42		-	restaurants on their platforms of existing agreements surrounding the current service option, as
43		-	required by the Act. The companies have informed restaurants that they will begin to pay a
44		-	higher commission fee– around 30% for local delivery – to receive their current level of service,
45		-	i.e., the ability to appear in search results of restaurant listings and reach a larger delivery area on
46		-	their platforms. ENROLLED ORIG INAL
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53		-	(d) Restaurants that remain at the lower 15% commission fee level will face a shrunken
54		-	customer base and smaller delivery area because they will not be as visible on the platform. The
55		-	resulting loss of revenue for many of these restaurants because of these fee hikes will be
56		-	devasting as they continue to recover from the pandemic. Consumers will also see increased
57		-	prices, as the higher commission fee rate will force restaurants to raise prices on food. Many
58		-	District residents have come to rely on third-party food delivery services since the pandemic, and
59		-	the increased use of those services has greatly benefitted local restaurants.
60		-	(e) Action must be taken to ensure that local restaurants and neighborhood businesses are
61		-	not burdened with excessive fees or certain mileage restrictions by third-party meal delivery
62		-	services so they can continue to recover to pre-pandemic market conditions and to ensure these
63		-	third-party meal delivery services comply with the original intent and spirit of the Act.
64		-
65		-	Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute
66		-	emergency circumstances making it necessary that the Food Delivery Fees Transparency
67		-	Emergency Amendment Act of 2023 be adopted after a single reading.
68		-
69		-	Sec. 4. This resolution shall take effect immediately.
	38	+	required by the Act. The companies have informed restaurants that they will begin to pay a 35
	39	+	higher commission fee– around 30% for local delivery – to receive their current level of service, 36
	40	+	i.e., the ability to appear in search results of restaurant listings and reach a larger delivery area on 37
	41	+	their platforms. 38
	42	+	(d) Restaurants that remain at the lower 15% commission fee level will face a shrunken 39
	43	+	customer base and smaller delivery area because they will not be as visible on the platform. The 40
	44	+	resulting loss of revenue for many of these restaurants because of these fee hikes will be 41
	45	+	devasting as they continue to recover from the pandemic. Consumers will also see increased 42
	46	+	prices, as the higher commission fee rate will force restaurants to raise prices on food. Many 43
	47	+	District residents have come to rely on third-party food delivery services since the pandemic, and 44
	48	+	the increased use of those services has greatly benefitted local restaurants. 45
	49	+	(e) Action must be taken to ensure that local restaurants and neighborhood businesses are 46
	50	+	not burdened with excessive fees by third- party meal delivery ser vices so they can continue to 47
	51	+	recover to pre-pandemic market conditions and to ensure these third-party meal delivery services 48
	52	+	comply with the original intent and spirit of the Act . 49
	53	+	Sec. 3. The Council of the District of Columbia determines that the circumstances 50
	54	+	enumerated in section 2 constitute emergency circumstances making it necessary that the Food 51
	55	+	Delivery Fees Transparency Emergency Amendment Act of 2023 be adopted after a single 52
	56	+	reading. 53
	57	+	Sec. 4. This resolution shall take effect immediately. 54