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Delivery Fee Cap Extension Passed

By NYC Hospitality Alliance

 
Today, the NYC Hospitality Alliance is happy to announce that the City Council voted to extend legislation that we championed, including the cap on third party delivery platform fees and penalties for bogus telephone order fees (additional details below). These bills are being sent to Mayor de Blasio and he is expected to sign them. 
 
Protecting restaurants and bars from predatory practices by third party delivery platforms is a major victory that will help our industry in the near term, while we continue to a advocate for a permanent one.
 
The passing of this legislation is an example of the NYC Hospitality Alliance's effective presence in the halls of government, but our success wouldn't be possible without your participation and input.
 
We want to thank Speaker Corey Johnson, Councilmember Gjonaj and Moya and others for supporting small businesses and protecting business owners from predatory practices by third party delivery platforms. We anticipate that Mayor de Blasio will sign the legislation into law.
 
 
Highlights of the bills:
 
  1. Int. 2054-A CAPS ON THIRD PARTY DELIVERY SERVICES. This bill amends an existing law limiting third-party platforms' fees under certain circumstances. Under the existing law, third-party platforms are prohibited from charging restaurants more than 15% per order for delivery and more than 5% per order for all other fees during states of emergency when on-premises dining is prohibited entirely, plus an additional 90 days thereafter. This bill would instead limit such fees during states of emergency when restaurants are restricted from operating at maximum indoor occupancy, plus an additional 90 days thereafter. In addition, this bill would exempt from the 5% limit on non-delivery fees, any fees incurred by the third-party delivery service for processing the customer transaction for which the third-party service acts as a "pass-through" by charging such fees to the restaurant.

     
  2. Int. 2043-A BOGUS FEES FOR TELEPHONE ORDERS. This bill amends the conditions in existing law under which third-party food delivery services are prohibited from charging restaurants bogus fees for telephone orders that did not result in a business transaction. Under the existing law, such charges are prohibited only during states of emergency when on-premises dining is prohibited entirely, plus an additional 90 days thereafter. This bill would instead prohibit such charges during states of emergency when restaurants are restricted from operating at maximum indoor occupancy, plus an additional 90 days thereafter.

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