First Regular Session of the 123rd General Assembly (2023)
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HOUSE ENROLLED ACT No. 1279
AN ACT to amend the Indiana Code concerning trade regulation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 24-4-23.2 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]:
Chapter 23.2. Third Party Food Delivery Services
Sec. 1. As used in this chapter, "affiliate" means any person who
directly or indirectly controls, is controlled by, or is under common
control of another person.
Sec. 2. (a) As used in this chapter, "covered establishment"
means a:
(1) restaurant; or
(2) food service establishment;
that offers, in a single transaction, whether directly or through a
third party food delivery service, the sale and same-day delivery or
pick up of food and beverages to customers.
(b) The term does not include a grocery store.
Sec. 3. As used in this chapter, "online order" means an order
that is:
(1) placed by a customer of a covered establishment;
(2) for food and beverages prepared or provided by the
covered establishment;
(3) for same-day delivery or pick up in Indiana; and
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(4) made through an online modality or platform provided by
a third party food delivery service, including:
(A) a website;
(B) a mobile application; or
(C) another Internet service.
Sec. 4. As used in this chapter, "person" means an individual, a
corporation, a partnership, an association, or another legal entity.
Sec. 5. (a) As used in this chapter, "third party food delivery
service" means a person that:
(1) uses an online modality or platform, such as:
(A) a website;
(B) a mobile application; or
(C) another Internet service;
to offer or arrange for the sale, and same-day delivery or pick
up, of food and beverages prepared or provided by one (1) or
more covered establishments that are not affiliates of the
person; and
(2) engages in the activities described in subdivision (1):
(A) for consideration; or
(B) for the purpose of obtaining customer data related to
a transaction between a covered establishment and a
customer of the covered establishment.
(b) The term does not include an:
(1) Internet service provider; or
(2) Internet search engine;
used by a third party food delivery service, a covered
establishment, or a customer of a covered establishment if the
Internet service provider or Internet search engine does not both
receive consideration for and offer and arrange for the sale, and
same-day delivery or pick up, of food and beverages prepared or
provided by one (1) or more covered establishments that are not
affiliates of the Internet service provider or the Internet search
engine, as described in subsection (a)(1) and (a)(2).
Sec. 6. (a) A third party food delivery service may not provide
any services related to facilitating, processing, or delivering an
online order for a covered establishment unless the covered
establishment expressly agrees in a signed writing, or through an
electronic agreement signed and dated with an electronic signature
(as defined in IC 26-2-8-102), to allow the third party food delivery
service to provide those services.
(b) If a covered establishment provides notice to a third party
food delivery service of the covered establishment's cancellation of
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the covered establishment's service contract with the third party
food delivery service, the third party food delivery service shall
comply with any terms and conditions for cancellation specified in
the contract, not later than:
(1) the time specified in the contract, if such a time is specified
in the contract; or
(2) if a time is not specified in the contract, seventy-two (72)
hours after the covered establishment's provision of the notice
of cancellation.
Unless otherwise specified in the service contract, not later than the
time specified in subdivision (1) or (2), as applicable, the third
party food delivery service shall remove all menus associated with
the covered establishment, whether the menus were provided to the
third party food delivery service by the covered establishment or
otherwise, from all online modalities or platforms of the third
party food delivery service and shall cease to offer, arrange, or
perform any activities related to the sale, and same-day delivery or
pickup, of food and beverages prepared or provided by the covered
establishment.
Sec. 7. (a) If a third party food delivery service:
(1) provides services related to facilitating, processing, or
delivering an online order for a covered establishment
without the covered establishment's express agreement to
allow the third party food delivery service to provide those
services, in violation of section 6(a) of this chapter; or
(2) fails to terminate a service contract with a covered
establishment as provided in section 6(b) of this chapter;
the covered establishment may bring an action for the alleged
violation in a court with jurisdiction.
(b) A court in an action brought by a covered establishment
against a third party food delivery service under subsection (a)
may grant a temporary injunction enjoining the third party food
delivery service, during the pendency of the action, from providing
services related to facilitating, processing, or delivering online
orders for food or beverages prepared or provided by the covered
establishment.
(c) A covered establishment that prevails in an action brought
under subsection (a) is entitled to:
(1) actual damages;
(2) temporary or permanent injunctive relief;
(3) liquidated damages of not more than fifty thousand dollars
($50,000); and
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(4) reasonable costs and attorney's fees;
for each transaction the third party food delivery service made
with a customer for food and beverages prepared or provided by
the covered establishment in violation of section 6(a) of this
chapter.
Sec. 8. The remedies set forth in this chapter are:
(1) cumulative;
(2) nonexclusive; and
(3) in addition to any other legal or equitable remedy
available to a person aggrieved by a violation of this chapter.
HEA 1279 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1279 — Concur