87R1289 JES-D
By: Sherman, Sr. H.B. No. 597
A BILL TO BE ENTITLED
AN ACT
relating to the use by third-party delivery services of merchants'
marks or other intellectual property; authorizing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 114 to read as follows:
CHAPTER 114. THIRD-PARTY DELIVERY SERVICES
Sec. 114.0001. DEFINITIONS. In this chapter:
(1) "Mark" has the meaning assigned by Section 16.001.
(2) "Merchant" means a restaurant or other business
entity that sells food or other goods directly to consumers.
(3) "Third-party delivery service" means a business
entity that:
(A) allows a consumer to purchase food or other
goods from a merchant through the entity's proprietary Internet
website, mobile application, or other Internet-based platform;
(B) delivers, including through use of an
independent contractor or agent of the entity, the purchased goods
to the consumer for a fee that is in addition to the fee charged by
the merchant for the goods; and
(C) operates outside of the merchant's business.
Sec. 114.0002. CONSENT REQUIRED FOR USE OF MERCHANT'S MARKS
OR INTELLECTUAL PROPERTY. (a) A third-party delivery service may
not use a merchant's mark or other intellectual property on the
service's Internet website or application without the prior written
consent of the merchant.
(b) To receive valid consent from a merchant under
Subsection (a), a third-party delivery service must be authorized
to conduct business in this state.
Sec. 114.0003. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A
third-party delivery service that violates Section 114.0002 is
liable to this state for a civil penalty in an amount not to exceed
$1,000 for each violation. Each day of a continuing violation is a
separate violation.
(b) The attorney general may bring an action in the name of
the state against the third-party delivery service for:
(1) injunctive relief;
(2) recovery of a civil penalty imposed under this
section; or
(3) both injunctive relief and a civil penalty.
(c) An action under this section may be brought in a
district court in:
(1) Travis County; or
(2) a county in which any part of the violation or
threatened violation occurs.
(d) A civil penalty collected under this section shall be
deposited in the state treasury to the credit of the general revenue
fund.
Sec. 114.0004. PRIVATE CAUSE OF ACTION. (a) If a
third-party delivery service violates Section 114.0002, a merchant
aggrieved of the violation may bring an action for:
(1) injunctive relief;
(2) damages in an amount equal to the greater of:
(A) the merchant's actual damages arising from
the violation; or
(B) $5,000, as exemplary damages, irrespective
of whether the merchant has actual damages; or
(3) both injunctive relief and damages.
(b) A merchant that is awarded actual damages under
Subsection (a)(2)(A) may also be awarded exemplary damages.
SECTION 2. This Act takes effect September 1, 2021.