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Breaking News: Regulating Grubhub and Third

We’re proud to announce that Council Members Mark Gjonaj and others will introduce legislation we’ve been advocating for

By NYC Hospitality Alliance

We’re proud to announce that Council Members Mark Gjonaj and others will introduce legislation we’ve been advocating for

As you know, the NYC Hospitality Alliance has helped lead the fight against bogus fees and other questionable business practices by the likes of Grubhub and some other third-party delivery companies.
 
And today, we're proud to announce that Council Member Mark Gjonaj and others will introduce legislation we've been advocating for. This is yet another example of the NYC Hospitality Alliance getting results for our members, with their unwavering support and participation.

 

You may read more about the proposals in this New York Times article, New York City May Crack Down on Grubhub and Other Food Delivery Apps in which we were quoted:

Andrew Rigie, executive director of the New York City Hospitality Alliance, a nonprofit association that represents the restaurant and night life industry, said the proposed regulations were necessary.

"It's no secret Grubhub has been exploiting restaurants around the city for years. They have been unregulated and they have charged restaurants bogus fees with no repercussions," Mr. Rigie said in an interview. "New Yorkers love delivery. It's great for restaurants and it does not need to be an adversarial relationship. Hopefully, this package of legislation will help level the playing field and give some basic rights to restaurants."

The following is a description of the six bills that will be introduced tomorrow:

1. Licensing: This bill will require all companies that wish to operate a third-party delivery platform be licensed in New York City.

2. Commission Cap: This bill would cap the commission that a third-party delivery can charge a restaurant at 10%.

3. Erroneous Phone Order Fees: This bill would prohibit third-party delivery platforms from charging restaurants for phone order that never happened. The bill would assign a monetary penalty for infractions.

4. Consumer Disclosure: This bill would require third-party delivery platforms to disclose to customers all commissions paid by the restaurant for a food order.

5. Menu Pricing: This bill would prohibit third-party delivery platforms from limiting restaurants from charging different menu prices for online and in-store items.

6. Tamper-Evident Packaging: This bill would require the use of tamper-evident packaging for third-party food delivery orders.

The next step is for the City Council to hold a public hearing on these bills where we will testify. We will be in touch and will need our members continued support to help pass these bills into law.

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