NY State Senate Bill 2019-S8816

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 20, 2020	referred to rules

co-Sponsors

2019-S8816 (ACTIVE) - Details

See Assembly Version of this Bill:: A10926
Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add Art 39-H §§900 - 901, Gen Bus L

2019-S8816 (ACTIVE) - Summary

Requires third-party delivery services to have a valid agreement with a merchant before they advertise, promote, or sell the merchant's products on their platform, and prohibits the inclusion of an indemnity clause in such agreements.

2019-S8816 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8816

SPONSOR: SAVINO
 
TITLE OF BILL:

An act to amend the general business law, in relation to third-party
delivery services

 
PURPOSE:

Amends the general business law to require a written agreement between a
merchant and third-party delivery service authorizing the inclusion of
such merchant's products on the third-party delivery platform.

 
SUMMARY OF PROVISIONS:

Adds a new article 39-H to the General Business Law

Section 900 - provides for definitions of "agreements", "consumer",
"merchant", "third-party delivery service" and "third-party delivery
platform"

Section 9001 - provides for the agreement, indemnity and penalties

 
JUSTIFICATION:

The third-party platforms and restaurant/merchant to consumer digital
sales were growing prior to covid, provide a valuable service during
this pandemic and will likely continue to grow.

While consumers want this convenience, restaurants/merchants want
control over their product. In food service, this is particularly impor-
tant from a food-safety and sanitation standpoint.

Sometimes, some third-party delivery services delivery from
restaurants/merchants without the restaurant/merchants permission.
Restaurants/merchants should be able to safeguard their reputations and
products with the requirement that third-party delivery services must
have the restaurants authorization prior to adding them to their plat-
forms.

Many restaurants have seen their business grow through collaborations
with third-party delivery services and will want to have these services
without the related labor costs of providing delivery with in-house
services. Nonetheless, these decisions should lay with the producer of
the product.

 
LEGISLATIVE HISTORY:

2020 Session - new bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Thirty days after becoming law

2019-S8816 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8816
 
                             I N  S E N A T E
 
                               July 20, 2020
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general business law,  in  relation  to  third-party
   delivery services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new article
 39-H to read as follows:
                               ARTICLE 39-H
                       THIRD-PARTY DELIVERY SERVICES
 SECTION 900. DEFINITIONS.
         901. AGREEMENT; INDEMNITY; PENALTIES.
   § 900. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "AGREEMENT"  MEANS  A  WRITTEN  CONTRACTUAL  AGREEMENT  BETWEEN  A
 MERCHANT AND A THIRD-PARTY DELIVERY SERVICE AUTHORIZING THE INCLUSION OF
 THE MERCHANT'S PRODUCTS ON THE THIRD-PARTY DELIVERY PLATFORM.
   2.  "CONSUMER" MEANS A PERSON, BUSINESS, OR OTHER ENTITY WHO PLACES AN
 ORDER FOR A MERCHANT'S PRODUCTS THROUGH A THIRD-PARTY DELIVERY PLATFORM.
   3. "MERCHANT" MEANS A RESTAURANT OR OTHER RETAIL ENTITY.
   4. "THIRD-PARTY DELIVERY SERVICE" MEANS A  COMPANY,  ORGANIZATION,  OR
 OTHER  ENTITY, OTHER THAN A MERCHANT, THAT PROVIDES DELIVERY SERVICES TO
 CONSUMERS.
   5. "THIRD-PARTY DELIVERY PLATFORM" MEANS THE ONLINE OR MOBILE PLATFORM
 OF THE THIRD-PARTY  DELIVERY  SERVICE  ON  WHICH  A  CONSUMER  CAN  VIEW
 PRODUCTS AVAILABLE FOR SALE AND PLACE AN ORDER FOR MERCHANT PRODUCTS.
   §  901.  AGREEMENT;  INDEMNITY;  PENALTIES.  1. A THIRD-PARTY DELIVERY
 SERVICE SHALL NOT ADVERTISE, PROMOTE, OR SELL A MERCHANT'S PRODUCTS ON A
 THIRD-PARTY  DELIVERY  PLATFORM  WITHOUT  A  VALID  AGREEMENT  WITH  THE
 MERCHANT  AUTHORIZING  THE  INCLUSION OF THE MERCHANT'S PRODUCTS ON SUCH
 PLATFORM.
   2. AN AGREEMENT EXECUTED IN ACCORDANCE WITH  THIS  SECTION  SHALL  NOT
 INCLUDE  A  PROVISION,  CLAUSE,  OR COVENANT THAT REQUIRES A MERCHANT TO
 INDEMNIFY A THIRD-PARTY DELIVERY  SERVICE,  ANY  INDEPENDENT  CONTRACTOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16996-01-0

 S. 8816                             2
 
 ACTING  ON BEHALF OF THE THIRD-PARTY DELIVERY SERVICE, OR ANY REGISTERED
 AGENT OF THE THIRD-PARTY DELIVERY SERVICE, FOR ANY DAMAGES OR HARM  THAT
 MAY  OCCUR  AFTER THE MERCHANT'S PRODUCT LEAVES THE PLACE OF BUSINESS OF
 THE MERCHANT. TO THE EXTENT AN AGREEMENT CONTAINS SUCH A PROVISION, SUCH
 PROVISION WILL BE DEEMED VOID AND UNENFORCEABLE.
   3. A MERCHANT INCLUDED ON A THIRD-PARTY DELIVERY PLATFORM IN VIOLATION
 OF  THIS  SECTION  SHALL HAVE THE RIGHT TO BRING AN ACTION IN A COURT OF
 COMPETENT JURISDICTION FOR DAMAGES,  PENALTIES  AS  SET  FORTH  IN  THIS
 SECTION,  AND INJUNCTIVE RELIEF. THE PREVAILING PARTY IN ANY SUCH ACTION
 SHALL BE ENTITLED TO AN AWARD OF REASONABLE ATTORNEYS' FEES.
   4. ANY PERSON THAT VIOLATES ANY PROVISION OF  THIS  SECTION  SHALL  BE
 SUBJECT  TO A CIVIL PENALTY OF UP TO ONE THOUSAND DOLLARS PER VIOLATION.
 EACH DAY A MERCHANT INCLUDED ON A THIRD-PARTY DELIVERY PLATFORM AND EACH
 MERCHANT INCLUDED ON A THIRD-PARTY DELIVERY PLATFORM SHALL BE CONSIDERED
 A SEPARATE VIOLATION.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.

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Senate Bill S8816

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

2019-S8816 (ACTIVE) - Details

2019-S8816 (ACTIVE) - Summary

2019-S8816 (ACTIVE) - Sponsor Memo

2019-S8816 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8816

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Sponsored By

Diane J. Savino

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

Anna M. Kaplan

2019-S8816 (ACTIVE) - Details

2019-S8816 (ACTIVE) - Summary

2019-S8816 (ACTIVE) - Sponsor Memo

2019-S8816 (ACTIVE) - Bill Text download pdf

Comments