NY State Senate Bill 2021-S3225

Senate Bill S3225

2021-2022 Legislative Session

Prohibits unauthorized listing of food places on the application and/or website of food delivery platforms

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to consumer protection
Jan 28, 2021	referred to consumer protection

2021-S3225 (ACTIVE) - Details

See Assembly Version of this Bill:: A784
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §391-v, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:: A11130

2021-S3225 (ACTIVE) - Summary

Prohibits unauthorized listing of food places on the application and/or website of food delivery platforms.

2021-S3225 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3225

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
unauthorized listing of food places on the application and/or website of
food delivery platforms

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit third-party delivery applications from engaging in the
deceptive practice of listing restaurants on their applications without
a written agreement and contract with a restaurant.

 
SUMMARY OF PROVISIONS:

Section 1: Establishes the Consumer Transparency and Fairness Act.
Provides the definitions of food delivery platform as third party deliv-
ery applications and food places as restaurants as established in the
public health law. The section also prohibits food delivery platforms

from listing a food place on their app without consent and provides a
penalty for refusing to remove a restaurant listing after the restaurant
has requested removal.

Section 2: Establishes the effective date

 
JUSTIFICATION:

An issue that has arisen with the rise of usage of third-party food
delivery applications during the COVID-19 pandemic has been the unscru-
pulous practice by third-party food delivery application companies of
listing restaurants on their applications and websites as being a
participating restaurant when in fact they are not a partner and in some
cases have expressed refused to contract with and partner with the
third-party food delivery company. This results in confusion for the
consumer when an order is not fulfilled or unexpectedly cancelled and
additional work for the restaurant to address the myriad issues that
result from these orders.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: A.11130 (McDonald)

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S3225 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3225
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   unauthorized  listing of food places on the application and/or website
   of food delivery platforms

   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 section
 391-v to read as follows:
   §  391-V.  CONSUMER TRANSPARENCY; FOOD DELIVERY PLATFORMS. 1.  FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (A)  "FOOD  DELIVERY PLATFORM" MEANS AN ONLINE BUSINESS INCLUDING, BUT
 NOT LIMITED TO, THIRD-PARTY FOOD DELIVERY APPLICATION COMPANIES THAT ACT
 AS AN INTERMEDIARY BETWEEN CONSUMERS AND MULTIPLE FOOD PLACES TO  SUBMIT
 FOOD  ORDERS  FROM  A  CONSUMER  TO  A  PARTICIPATING FOOD PLACE, AND TO
 ARRANGE FOR THE DELIVERY OF SUCH ORDER  FROM  SUCH  FOOD  PLACE  TO  THE
 CONSUMER.
   (B)  "FOOD  PLACE"  MEANS  ANY RESTAURANT, DINING ROOM, FOOD TRUCK, OR
 OTHER BUSINESS ENGAGED IN  THE  PREPARATION  AND  SERVICE  OF  FOOD  FOR
 CONSUMPTION BY THE GENERAL PUBLIC ON OR OFF PREMISES.
   2.  A  FOOD DELIVERY PLATFORM SHALL NOT ARRANGE FOR THE DELIVERY OF AN
 ORDER FROM A FOOD PLACE WITHOUT FIRST ENTERING INTO A WRITTEN  AGREEMENT
 WITH  SUCH  FOOD PLACE EXPRESSLY AUTHORIZING SUCH FOOD DELIVERY PLATFORM
 TO TAKE ORDERS AND TO DELIVER FOOD AND/OR  BEVERAGES  PREPARED  BY  SUCH
 FOOD PLACE.
   3.  A  FOOD  DELIVERY PLATFORM SHALL BE PROHIBITED FROM LISTING A FOOD
 PLACE ON ITS APPLICATION AND/OR WEBSITE AS A  PARTICIPATING  FOOD  PLACE
 WITHOUT  FIRST EXECUTING A WRITTEN AGREEMENT PURSUANT TO SUBDIVISION TWO
 OF THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04821-01-1

 S. 3225                             2
 
   4. IN THE EVENT A FOOD DELIVERY PLATFORM RECEIVES  A  WRITTEN  REQUEST
 FROM  A  FOOD PLACE REQUESTING THAT SUCH FOOD PLACE BE REMOVED FROM SUCH
 FOOD DELIVERY PLATFORM'S APPLICATION AND/OR WEBSITE, SUCH FOOD  DELIVERY
 PLATFORM  SHALL  CONFIRM  RECEIPT  OF  SUCH REQUEST AND REMOVE SUCH FOOD
 PLACE FROM ITS APPLICATION AND/OR WEBSITE IMMEDIATELY THEREAFTER.
   5.  IN  THE EVENT THAT A FOOD DELIVERY PLATFORM DOES NOT REMOVE A FOOD
 PLACE FROM ITS APPLICATION AND/OR WEBSITE AFTER RECEIVING A  REQUEST  TO
 DO  SO  FROM SUCH FOOD PLACE WITHIN FIVE BUSINESS DAYS OF RECEIVING SUCH
 REQUEST, SUCH FOOD DELIVERY PLATFORM SHALL BE FINED FIVE HUNDRED DOLLARS
 FOR EACH DAY SUCH FOOD DELIVERY PLATFORM FAILS TO REMOVE SUCH FOOD PLACE
 FROM ITS APPLICATION AND/OR WEBSITE.
   § 2. This act shall take effect immediately.

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