NY State Senate Bill 2021-S1554B

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2022	committed to rules
Feb 14, 2022	advanced to third reading
Feb 09, 2022	2nd report cal.
Feb 08, 2022	1st report cal.459
Feb 03, 2022	print number 1554c
Feb 03, 2022	amend (t) and recommit to consumer protection
Jan 05, 2022	referred to consumer protection returned to senate died in assembly
Jan 19, 2021	referred to consumer affairs and protection delivered to assembly passed senate ordered to third reading cal.63 reported and committed to rules
Jan 15, 2021	print number 1554b
Jan 15, 2021	amend and recommit to consumer protection
Jan 14, 2021	print number 1554a
Jan 14, 2021	amend (t) and recommit to consumer protection
Jan 13, 2021	referred to consumer protection

Votes

- Jan 19, 2021 - Floor Vote
  S1554B
  
  61
  
  Aye
  
  2
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jan 19, 2021
      
      aye (61)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
      
      nay (2)
      
      Akshar
      
      Savino
  Jan 19, 2021 - Rules Committee Vote
  S1554B
  
  18
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jan 19, 2021
      
      aye (18)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Boyle
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Ritchie
      
      Stewart-Cousins
      
      nay (1)
      
      Savino
      
      aye wr (1)
      
      Griffo
      
      absent (1)
      
      Sepúlveda
  Feb 8, 2022 - Consumer Protection Committee Vote
  S1554B
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Feb 8, 2022
      
      aye (7)
      
      Cleare
      
      Kavanagh
      
      Mattera
      
      Myrie
      
      Reichlin-Melnick
      
      Tedisco
      
      Thomas
  Jan 19, 2021 - Consumer Protection Committee Vote
  S1554B
  
  5
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Jan 19, 2021
      
      aye (5)
      
      Gounardes
      
      Kavanagh
      
      Myrie
      
      Reichlin-Melnick
      
      Thomas
      
      nay (1)
      
      Mattera
      
      aye wr (1)
      
      Tedisco

Bill Amendments

Original

C (Active)

2021-S1554 - Details

Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add §391-v, Gen Bus L
Versions Introduced in 2023-2024 Legislative Session:: S565

2021-S1554 - Summary

Prohibits third-party food delivery services from charging a food service establishment a delivery fee or other fees that total more than a certain percent of the total purchase price of an online order.

2021-S1554 - Sponsor Memo

                                
 
BILL NUMBER: S1554

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general business law, in relation to third-party
food delivery service charges

 
PURPOSE:

The purpose of this bill is to cap the permissible fees third-party food
delivery services may charge to restaurants for delivery services.

 
SUMMARY OF PROVISIONS:

Section 1 (1) adds new section 391-v of the general business law, which
sets definitions of terms.(2) Establishes that no third-party food
delivery service shall charge a food service establishment a delivery
fee that totals more than fifteen percent of the purchase price of each
online order, and that no third-party delivery service shall charge any
fee other than a delivery fee for the use of their service that totals

more than five percent.(3) Sets terms for penalties for violations of
this section and enforcement thereof.

Section 2 is the effective date.

 
JUSTIFICATION:

Third-party food delivery services typically take between 10 and 30
percent commission per order from the restaurants. In some cases, this
number goes up to 40% depending on the "marketing services" provided
(e.g., prioritizing a certain restaurant on the platform, search engine
optimization or providing a phone line). These commissions have risen to
exploitative levels and are putting immense pressure on the hospitality
businesses already struggling to survive.

Increased reliance on online marketplaces for products and services has
reshaped the hospitality market and the leverage of technology platforms
on food retail establishments have grown considerably as a result. These
online delivery platforms, many of which have been and still are loss-
making ventures, have expanded their reach and influence while sustain-
ing financially by relying on growth equity.  To attain profitability
these platforms are now using their leverage over small businesses to
increase their margins by extracting exorbitant commissions, simply for
providing access to customers.

Restrictions placed on dining services in the aftermath of COVID-19 have
further disadvantaged the restaurants already at risk of exploitation
making the issue, and a legislative action, even more urgent.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S1554 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1554
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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  third-party
   food delivery service charges
 
   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. THIRD-PARTY FOOD DELIVERY SERVICE CHARGE. 1. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "DELIVERY FEE" MEANS A FEE CHARGED BY A THIRD-PARTY FOOD  DELIVERY
 SERVICE  FOR  PROVIDING A FOOD SERVICE ESTABLISHMENT WITH A SERVICE THAT
 DELIVERS FOOD FROM SUCH ESTABLISHMENT TO CUSTOMERS. THE  TERM  DOES  NOT
 INCLUDE ANY OTHER FEE THAT MAY BE CHARGED BY A THIRD-PARTY FOOD DELIVERY
 SERVICE  TO  A  FOOD  SERVICE ESTABLISHMENT, SUCH AS FEES FOR LISTING OR
 ADVERTISING THE FOOD  SERVICE  ESTABLISHMENT  ON  THE  THIRD-PARTY  FOOD
 DELIVERY  SERVICE  PLATFORM  OR  FEES  RELATED  TO PROCESSING THE ONLINE
 ORDER.
   (B) "FOOD SERVICE ESTABLISHMENT" MEANS A PLACE WHERE FOOD IS  PROVIDED
 FOR  INDIVIDUAL  PORTION  SERVICE  DIRECTLY TO THE CONSUMER WHETHER SUCH
 FOOD IS PROVIDED FREE OF CHARGE OR SOLD, AND WHETHER CONSUMPTION  OCCURS
 ON OR OFF THE PREMISES OR IS PROVIDED FROM A PUSHCART, STAND OR VEHICLE.
   (C)  "ONLINE  ORDER"  MEANS  ANY ORDER PLACED BY A CUSTOMER THROUGH OR
 WITH THE ASSISTANCE OF A PLATFORM PROVIDED BY A THIRD-PARTY FOOD  DELIV-
 ERY SERVICE, INCLUDING A TELEPHONE ORDER.
   (D)  "PURCHASE  PRICE" MEANS THE TOTAL PRICE OF THE ITEMS CONTAINED IN
 AN ONLINE ORDER THAT ARE LISTED ON THE MENU OF THE FOOD  SERVICE  ESTAB-
 LISHMENT  WHERE  SUCH ORDER IS PLACED. SUCH TERM DOES NOT INCLUDE TAXES,
 GRATUITIES AND ANY OTHER FEES THAT MAY MAKE UP THE  TOTAL  COST  TO  THE
 CUSTOMER OF AN ONLINE ORDER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06555-02-1

 S. 1554                             2
 
   (E)  "THIRD-PARTY  FOOD  DELIVERY  SERVICE"  MEANS ANY WEBSITE, MOBILE
 APPLICATION OR OTHER INTERNET SERVICE THAT OFFERS OR  ARRANGES  FOR  THE
 SALE  OF  FOOD  AND  BEVERAGES PREPARED BY, AND THE SAME-DAY DELIVERY OR
 SAME-DAY PICKUP OF FOOD AND BEVERAGES FROM, NO FEWER  THAN  TWENTY  FOOD
 SERVICE  ESTABLISHMENTS LOCATED IN THE STATE THAT ARE OWNED AND OPERATED
 BY DIFFERENT PERSONS.
   2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION:
   (A) NO THIRD-PARTY FOOD DELIVERY SERVICE SHALL CHARGE A  FOOD  SERVICE
 ESTABLISHMENT  A  DELIVERY  FEE THAT TOTALS MORE THAN FIFTEEN PERCENT OF
 THE PURCHASE PRICE OF EACH ONLINE ORDER;
   (B) IT SHALL BE UNLAWFUL FOR A THIRD-PARTY FOOD  DELIVERY  SERVICE  TO
 CHARGE A FOOD SERVICE ESTABLISHMENT ANY FEE OR FEES, OTHER THAN A DELIV-
 ERY  FEE  PERMITTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, FOR THE USE
 OF SERVICES PROVIDED BY SUCH THIRD-PARTY DELIVERY SERVICE THAT IS GREAT-
 ER THAN FIVE PERCENT OF THE PURCHASE PRICE OF EACH ONLINE ORDER.
   (C) ANY FEE OR OTHER CHARGES FROM A THIRD-PARTY FOOD DELIVERY  SERVICE
 TO A FOOD SERVICE ESTABLISHMENT BEYOND SUCH MAXIMUM FIVE PERCENT FEE PER
 ORDER  PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, AND A DELIVERY FEE
 COLLECTED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, SHALL BE UNLAW-
 FUL; AND
   (D) NO THIRD-PARTY FOOD DELIVERY  SERVICE  SHALL  REDUCE  THE  COMPEN-
 SATION,  INCLUDING  BUT NOT LIMITED TO, ANY TIP OR GRATUITY, PAID TO ANY
 WORKER, AS A RESULT OF COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
   3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
 MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
 STATE  OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE AN
 INJUNCTION TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATION; AND
 IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE THAT  THE
 DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS SECTION, AN INJUNCTION MAY BE
 ISSUED BY SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING  ANY  FURTHER
 VIOLATION,  WITHOUT  REQUIRING  PROOF THAT ANY PERSON HAS, IN FACT, BEEN
 INJURED OR DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT  MAY  MAKE
 ALLOWANCES  TO  THE ATTORNEY GENERAL AND DIRECT RESTITUTION OF AN AMOUNT
 NOT TO EXCEED THE AMOUNT OF FEES COLLECTED IN VIOLATION OF THIS  SECTION
 BY  A THIRD-PARTY FOOD DELIVERY SERVICE, ATTORNEYS' FEES, AND SUCH OTHER
 REMEDIES AS THE COURT MAY DEEM APPROPRIATE.  WHENEVER  THE  COURT  SHALL
 DETERMINE  THAT  A VIOLATION OF THIS SECTION HAS OCCURRED, THE COURT MAY
 IMPOSE A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND  DOLLARS  FOR  EACH
 VIOLATION.  EACH  DAY  A VIOLATION OF THIS SECTION IS CONTINUED AND EACH
 FOOD SERVICE ESTABLISHMENT CHARGED A FEE IN VIOLATION  OF  THIS  SECTION
 SHALL  CONSTITUTE  A  SEPARATE  VIOLATION.  IN  CONNECTION WITH ANY SUCH
 PROPOSED APPLICATION THE ATTORNEY GENERAL IS AUTHORIZED  TO  TAKE  PROOF
 AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
 ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   § 2. This act shall take effect immediately.

2021-S1554A - Details

Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add §391-v, Gen Bus L
Versions Introduced in 2023-2024 Legislative Session:: S565

2021-S1554A - Summary

2021-S1554A - Sponsor Memo

                                
 
BILL NUMBER: S1554A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general business law, in relation to third-party
food delivery service charges; and providing for the repeal of such
provisions upon expiration thereof

 
PURPOSE:

The purpose of this bill is to cap the permissible fees third-party food
delivery services may charge to restaurants for delivery services for
the period of the COVID-19 related public health emergency and 90days
after.

 
SUMMARY OF PROVISIONS:

Section 1 (1) adds new section 391-v of the general business law, which
sets definitions of terms.(2) Establishes that no third-party food
delivery service shall charge a food service establishment a delivery

fee that totals more than fifteen percent of the purchase price of each
online order, and that no third-party delivery service shall charge any
fee other than a delivery fee for the use of their service that totals
more than five percent.(3) Sets terms for penalties for violations of
this section and enforcement thereof.

Section 2 is the effective date.

 
JUSTIFICATION:

Third-party food delivery services typically take between 10 and 30
percent commission per order from the restaurants. In some cases, this
number goes up to 40% depending on the "marketing services" provided
(e.g., prioritizing a certain restaurant on the platform, search engine
optimization or providing a phone line). These commissions have risen to
exploitative levels and are putting immense pressure on the hospitality
businesses already struggling to survive.

Increased reliance on online marketplaces for products and services has
reshaped the hospitality market and the leverage of technology platforms
on food retail establishments have grown considerably as a result. These
online delivery platforms, many of which have been and still are loss-
making ventures, have expanded their reach and influence while sustain-
ing financially by relying on growth equity.  To attain profitability
these platforms are now using their leverage over small businesses to
increase their margins by extracting exorbitant commissions, simply for
providing access to customers.

Restrictions placed on dining services in the aftermath of COVID-19 have
further disadvantaged the restaurants already at risk of exploitation
making the issue, and a legislative action, even more urgent.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately, and shall expire and be deemed
repealed ninety days after the end of the state disaster emergency
declared pursuant to executive order 202 of 2020, and as extended by any
future executive order.

2021-S1554A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1554--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Consumer  Protection  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the general business law,  in  relation  to  third-party
   food  delivery  service  charges; and providing for the repeal of such
   provisions upon expiration thereof
 
   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. THIRD-PARTY FOOD DELIVERY SERVICE CHARGE. 1. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "DELIVERY FEE" MEANS A FEE CHARGED BY A THIRD-PARTY FOOD DELIVERY
 SERVICE FOR PROVIDING A FOOD SERVICE ESTABLISHMENT WITH A  SERVICE  THAT
 DELIVERS  FOOD  FROM  SUCH ESTABLISHMENT TO CUSTOMERS. THE TERM DOES NOT
 INCLUDE ANY OTHER FEE THAT MAY BE CHARGED BY A THIRD-PARTY FOOD DELIVERY
 SERVICE TO A FOOD SERVICE ESTABLISHMENT, SUCH AS  FEES  FOR  LISTING  OR
 ADVERTISING  THE  FOOD  SERVICE  ESTABLISHMENT  ON  THE THIRD-PARTY FOOD
 DELIVERY SERVICE PLATFORM OR  FEES  RELATED  TO  PROCESSING  THE  ONLINE
 ORDER.
   (B)  "FOOD SERVICE ESTABLISHMENT" MEANS A PLACE WHERE FOOD IS PROVIDED
 FOR INDIVIDUAL PORTION SERVICE DIRECTLY TO  THE  CONSUMER  WHETHER  SUCH
 FOOD  IS PROVIDED FREE OF CHARGE OR SOLD, AND WHETHER CONSUMPTION OCCURS
 ON OR OFF THE PREMISES OR IS PROVIDED FROM A PUSHCART, STAND OR VEHICLE.
   (C) "ONLINE ORDER" MEANS ANY ORDER PLACED BY  A  CUSTOMER  THROUGH  OR
 WITH  THE ASSISTANCE OF A PLATFORM PROVIDED BY A THIRD-PARTY FOOD DELIV-
 ERY SERVICE, INCLUDING A TELEPHONE ORDER.
   (D) "PURCHASE PRICE" MEANS THE TOTAL PRICE OF THE ITEMS  CONTAINED  IN
 AN  ONLINE  ORDER THAT ARE LISTED ON THE MENU OF THE FOOD SERVICE ESTAB-
 LISHMENT WHERE SUCH ORDER IS PLACED. SUCH TERM DOES NOT  INCLUDE  TAXES,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06555-03-1

 S. 1554--A                          2
 
 GRATUITIES  AND  ANY  OTHER  FEES THAT MAY MAKE UP THE TOTAL COST TO THE
 CUSTOMER OF AN ONLINE ORDER.
   (E)  "THIRD-PARTY  FOOD  DELIVERY  SERVICE"  MEANS ANY WEBSITE, MOBILE
 APPLICATION OR OTHER INTERNET SERVICE THAT OFFERS OR  ARRANGES  FOR  THE
 SALE  OF  FOOD  AND  BEVERAGES PREPARED BY, AND THE SAME-DAY DELIVERY OR
 SAME-DAY PICKUP OF FOOD AND BEVERAGES FROM, NO FEWER  THAN  TWENTY  FOOD
 SERVICE  ESTABLISHMENTS LOCATED IN THE STATE THAT ARE OWNED AND OPERATED
 BY DIFFERENT PERSONS.
   2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION:
   (A) NO THIRD-PARTY FOOD DELIVERY SERVICE SHALL CHARGE A  FOOD  SERVICE
 ESTABLISHMENT  A  DELIVERY  FEE THAT TOTALS MORE THAN FIFTEEN PERCENT OF
 THE PURCHASE PRICE OF EACH ONLINE ORDER;
   (B) IT SHALL BE UNLAWFUL FOR A THIRD-PARTY FOOD  DELIVERY  SERVICE  TO
 CHARGE A FOOD SERVICE ESTABLISHMENT ANY FEE OR FEES, OTHER THAN A DELIV-
 ERY  FEE  PERMITTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, FOR THE USE
 OF SERVICES PROVIDED BY SUCH THIRD-PARTY DELIVERY SERVICE THAT IS GREAT-
 ER THAN FIVE PERCENT OF THE PURCHASE PRICE OF EACH ONLINE ORDER.
   (C) ANY FEE OR OTHER CHARGES FROM A THIRD-PARTY FOOD DELIVERY  SERVICE
 TO A FOOD SERVICE ESTABLISHMENT BEYOND SUCH MAXIMUM FIVE PERCENT FEE PER
 ORDER  PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, AND A DELIVERY FEE
 COLLECTED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, SHALL BE UNLAW-
 FUL; AND
   (D) NO THIRD-PARTY FOOD DELIVERY  SERVICE  SHALL  REDUCE  THE  COMPEN-
 SATION,  INCLUDING  BUT NOT LIMITED TO, ANY TIP OR GRATUITY, PAID TO ANY
 WORKER, AS A RESULT OF COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
   3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
 MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
 STATE  OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE AN
 INJUNCTION TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATION; AND
 IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE THAT  THE
 DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS SECTION, AN INJUNCTION MAY BE
 ISSUED BY SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING  ANY  FURTHER
 VIOLATION,  WITHOUT  REQUIRING  PROOF THAT ANY PERSON HAS, IN FACT, BEEN
 INJURED OR DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT  MAY  MAKE
 ALLOWANCES  TO  THE ATTORNEY GENERAL AND DIRECT RESTITUTION OF AN AMOUNT
 NOT TO EXCEED THE AMOUNT OF FEES COLLECTED IN VIOLATION OF THIS  SECTION
 BY  A THIRD-PARTY FOOD DELIVERY SERVICE, ATTORNEYS' FEES, AND SUCH OTHER
 REMEDIES AS THE COURT MAY DEEM APPROPRIATE.  WHENEVER  THE  COURT  SHALL
 DETERMINE  THAT  A VIOLATION OF THIS SECTION HAS OCCURRED, THE COURT MAY
 IMPOSE A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND  DOLLARS  FOR  EACH
 VIOLATION.  EACH  DAY  A VIOLATION OF THIS SECTION IS CONTINUED AND EACH
 FOOD SERVICE ESTABLISHMENT CHARGED A FEE IN VIOLATION  OF  THIS  SECTION
 SHALL  CONSTITUTE  A  SEPARATE  VIOLATION.  IN  CONNECTION WITH ANY SUCH
 PROPOSED APPLICATION THE ATTORNEY GENERAL IS AUTHORIZED  TO  TAKE  PROOF
 AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
 ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   §  2.  This act shall take effect immediately, and shall expire and be
 deemed repealed ninety days after the end of the state disaster emergen-
 cy declared pursuant to executive  order  number  202  and  any  further
 amendments  or modifications, and as may be further extended pursuant to
 section 28 of the executive law; and provided, further, that the  attor-
 ney  general  shall notify the legislative bill drafting commission upon
 the occurrence  of  the  expiration  of  the  state  disaster  emergency
 declared  by  executive  order  number 202 and any further amendments or
 modifications, and as may be further extended pursuant to section 28  of
 the executive law, in order that the commission may maintain an accurate

 S. 1554--A                          3
 
 and  timely  effective data base of the official text of the laws of the
 state of New York in  furtherance  of  effectuating  the  provisions  of
 section  44  of the legislative law and section 70-b of the public offi-
 cers law.

co-Sponsors

View additional co-sponsors

2021-S1554B - Details

Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add §391-v, Gen Bus L
Versions Introduced in 2023-2024 Legislative Session:: S565

2021-S1554B - Summary

2021-S1554B - Sponsor Memo

                                
 
BILL NUMBER: S1554B

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general business law, in relation to third-party
food delivery service charges; and providing for the repeal of such
provisions upon expiration thereof

 
PURPOSE:

The purpose of this bill is to cap the permissible fees third-party food
delivery services may charge to restaurants for delivery services for
the period of the COVID-19 related public health emergency and 90days
after.

 
SUMMARY OF PROVISIONS:

Section 1 (1) adds new section 391-v of the general business law, which
sets definitions of terms.(2) Establishes that no third-party food
delivery service shall charge a food service establishment a delivery

fee that totals more than fifteen percent of the purchase price of each
online order, and that no third-party delivery service shall charge any
fee other than a delivery fee or a credit card fee for the use of their
service that totals more than five percent.(3) Sets terms for penalties
for violations of this section and enforcement thereof.

Section 2 is the effective date.

 
JUSTIFICATION:

Third-party food delivery services typically take between 10 and 30
percent commission per order from the restaurants. In some cases, this
number goes up to 40% depending on the "marketing services" provided
(e.g., prioritizing a certain restaurant on the platform, search engine
optimization or providing a phone line). These commissions have risen to
exploitative levels and are putting immense pressure on the hospitality
businesses already struggling to survive.

Increased reliance on online marketplaces for products and services has
reshaped the hospitality market and the leverage of technology platforms
on food retail establishments have grown considerably as a result. These
online delivery platforms, many of which have been and still are loss-
making ventures, have expanded their reach and influence while sustain-
ing financially by relying on growth equity.  To attain profitability
these platforms are now using their leverage over small businesses to
increase their margins by extracting exorbitant commissions, simply for
providing access to customers.

Restrictions placed on dining services in the aftermath of COVID-19 have
further disadvantaged the restaurants already at risk of exploitation
making the issue, and a legislative action, even more urgent.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately, and shall expire and be deemed
repealed ninety days after the end of the state disaster emergency
declared pursuant to executive order 202 of 2020, and as extended by any
future executive order.

2021-S1554B - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1554--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Consumer  Protection  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- committee discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee

 AN  ACT  to  amend  the general business law, in relation to third-party
   food delivery service charges; and providing for the  repeal  of  such
   provisions upon expiration thereof
 
   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. THIRD-PARTY FOOD DELIVERY SERVICE CHARGE. 1. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "DELIVERY FEE" MEANS A FEE CHARGED BY A THIRD-PARTY FOOD  DELIVERY
 SERVICE  FOR  PROVIDING A FOOD SERVICE ESTABLISHMENT WITH A SERVICE THAT
 DELIVERS FOOD FROM SUCH ESTABLISHMENT TO CUSTOMERS. THE  TERM  DOES  NOT
 INCLUDE ANY OTHER FEE THAT MAY BE CHARGED BY A THIRD-PARTY FOOD DELIVERY
 SERVICE  TO  A  FOOD  SERVICE ESTABLISHMENT, SUCH AS FEES FOR LISTING OR
 ADVERTISING THE FOOD  SERVICE  ESTABLISHMENT  ON  THE  THIRD-PARTY  FOOD
 DELIVERY  SERVICE  PLATFORM  OR  FEES  RELATED  TO PROCESSING THE ONLINE
 ORDER.
   (B) "FOOD SERVICE ESTABLISHMENT" MEANS A PLACE WHERE FOOD IS  PROVIDED
 FOR  INDIVIDUAL  PORTION  SERVICE  DIRECTLY TO THE CONSUMER WHETHER SUCH
 FOOD IS PROVIDED FREE OF CHARGE OR SOLD, AND WHETHER CONSUMPTION  OCCURS
 ON OR OFF THE PREMISES OR IS PROVIDED FROM A PUSHCART, STAND OR VEHICLE.
   (C)  "ONLINE  ORDER"  MEANS  ANY ORDER PLACED BY A CUSTOMER THROUGH OR
 WITH THE ASSISTANCE OF A PLATFORM PROVIDED BY A THIRD-PARTY FOOD  DELIV-
 ERY SERVICE, INCLUDING A TELEPHONE ORDER.
   (D)  "PURCHASE  PRICE" MEANS THE TOTAL PRICE OF THE ITEMS CONTAINED IN
 AN ONLINE ORDER THAT ARE LISTED ON THE MENU OF THE FOOD  SERVICE  ESTAB-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06555-04-1

 S. 1554--B                          2
 
 LISHMENT  WHERE  SUCH ORDER IS PLACED. SUCH TERM DOES NOT INCLUDE TAXES,
 GRATUITIES AND ANY OTHER FEES THAT MAY MAKE UP THE  TOTAL  COST  TO  THE
 CUSTOMER OF AN ONLINE ORDER.
   (E)  "THIRD-PARTY  FOOD  DELIVERY  SERVICE"  MEANS ANY WEBSITE, MOBILE
 APPLICATION OR OTHER INTERNET SERVICE THAT OFFERS OR  ARRANGES  FOR  THE
 SALE  OF  FOOD  AND  BEVERAGES PREPARED BY, AND THE SAME-DAY DELIVERY OR
 SAME-DAY PICKUP OF FOOD AND BEVERAGES FROM, NO FEWER  THAN  TWENTY  FOOD
 SERVICE  ESTABLISHMENTS LOCATED IN THE STATE THAT ARE OWNED AND OPERATED
 BY DIFFERENT PERSONS.
   2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION:
   (A) NO THIRD-PARTY FOOD DELIVERY SERVICE SHALL CHARGE A  FOOD  SERVICE
 ESTABLISHMENT  A  DELIVERY  FEE THAT TOTALS MORE THAN FIFTEEN PERCENT OF
 THE PURCHASE PRICE OF EACH ONLINE ORDER;
   (B) IT SHALL BE UNLAWFUL FOR A THIRD-PARTY FOOD  DELIVERY  SERVICE  TO
 CHARGE A FOOD SERVICE ESTABLISHMENT ANY FEE OR FEES, OTHER THAN A DELIV-
 ERY  FEE  PERMITTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, FOR THE USE
 OF SERVICES PROVIDED BY SUCH THIRD-PARTY DELIVERY SERVICE THAT IS GREAT-
 ER THAN FIVE PERCENT  OF  THE  PURCHASE  PRICE  OF  EACH  ONLINE  ORDER,
 PROVIDED  THAT  SUCH  CAP  SHALL  NOT APPLY TO A CREDIT CARD FEE THAT IS
 CHARGED TO THE THIRD-PARTY FOOD DELIVERY SERVICE AND IS CHARGED  IN  THE
 SAME  AMOUNT  BY  THE  THIRD-PARTY  FOOD  DELIVERY  SERVICE TO SUCH FOOD
 SERVICE ESTABLISHMENT.
   (C) ANY FEE OR OTHER CHARGES FROM A THIRD-PARTY FOOD DELIVERY  SERVICE
 TO A FOOD SERVICE ESTABLISHMENT BEYOND SUCH MAXIMUM FIVE PERCENT FEE PER
 ORDER  AND  A CREDIT CARD FEE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVI-
 SION, AND A DELIVERY FEE COLLECTED PURSUANT TO  PARAGRAPH  (A)  OF  THIS
 SUBDIVISION, SHALL BE UNLAWFUL; AND
   (D)  NO  THIRD-PARTY  FOOD  DELIVERY  SERVICE SHALL REDUCE THE COMPEN-
 SATION, INCLUDING BUT NOT LIMITED TO, ANY TIP OR GRATUITY, PAID  TO  ANY
 WORKER, AS A RESULT OF COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
   3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
 MAY  BE  MADE  BY  THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
 STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE  AN
 INJUNCTION TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATION; AND
 IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE THAT THE
 DEFENDANT HAS, IN FACT, VIOLATED THIS  SECTION,  AN  INJUNCTION  MAY  BE
 ISSUED  BY  SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER
 VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS,  IN  FACT,  BEEN
 INJURED  OR  DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT MAY MAKE
 ALLOWANCES TO THE ATTORNEY GENERAL AND DIRECT RESTITUTION OF  AN  AMOUNT
 NOT  TO EXCEED THE AMOUNT OF FEES COLLECTED IN VIOLATION OF THIS SECTION
 BY A THIRD-PARTY FOOD DELIVERY SERVICE, ATTORNEYS' FEES, AND SUCH  OTHER
 REMEDIES  AS  THE  COURT  MAY DEEM APPROPRIATE. WHENEVER THE COURT SHALL
 DETERMINE THAT A VIOLATION OF THIS SECTION HAS OCCURRED, THE  COURT  MAY
 IMPOSE  A  CIVIL  PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH
 VIOLATION. EACH DAY A VIOLATION OF THIS SECTION IS  CONTINUED  AND  EACH
 FOOD  SERVICE  ESTABLISHMENT  CHARGED A FEE IN VIOLATION OF THIS SECTION
 SHALL CONSTITUTE A SEPARATE  VIOLATION.  IN  CONNECTION  WITH  ANY  SUCH
 PROPOSED  APPLICATION  THE  ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF
 AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
 ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   § 2. This act shall take effect immediately, and shall expire  and  be
 deemed repealed ninety days after the end of the state disaster emergen-
 cy  declared  pursuant  to  executive  order  number 202 and any further
 amendments or modifications, and as may be further extended pursuant  to
 section  28 of the executive law; and provided, further, that the attor-

 S. 1554--B                          3

 ney general shall notify the legislative bill drafting  commission  upon
 the  occurrence  of  the  expiration  of  the  state  disaster emergency
 declared by executive order number 202 and  any  further  amendments  or
 modifications,  and as may be further extended pursuant to section 28 of
 the executive law, in order that the commission may maintain an accurate
 and timely effective data base of the official text of the laws  of  the
 state  of  New  York  in  furtherance  of effectuating the provisions of
 section 44 of the legislative law and section 70-b of the  public  offi-
 cers law.

co-Sponsors

View additional co-sponsors

2021-S1554C (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add §391-v, Gen Bus L
Versions Introduced in 2023-2024 Legislative Session:: S565

2021-S1554C (ACTIVE) - Summary

2021-S1554C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1554C

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general business law, in relation to third-party
food delivery service charges

 
PURPOSE:

The purpose of this bill is to cap the permissible fees third-party food
delivery services may charge to restaurants for delivery services.

 
SUMMARY OF PROVISIONS:

Section 1 (1) adds new section 391-v of the general business law, which
sets definitions of terms.(2) Establishes that no third-party food
delivery service shall charge a food service establishment a delivery
fee that totals more than fifteen percent of the purchase price of each
online order, and that no third-party delivery service shall charge any
fee other than a delivery fee that totals more than five percent and no
credit card transaction fee greater than 3%.(3) Sets terms for penalties

for violations of this section and enforcement thereof.

Section 2 is the effective date.

 
JUSTIFICATION:

Third-party food delivery services typically take between 10 and 30
percent commission per order from the restaurants. In some cases, this
number goes up to 40% depending on the "marketing services" provided
(e.g., prioritizing a certain restaurant on the platform, search engine
optimization or providing a phone line). These commissions have risen to
exploitative levels and are putting immense pressure on the hospitality
businesses already struggling to survive.

Increased reliance on online marketplaces for products and services has
reshaped the hospitality market and the leverage of technology platforms
on food retail establishments have grown considerably as a result. These
online delivery platforms, many of which have been and still are loss-
making ventures, have expanded their reach and influence while sustain-
ing financially by relying on growth equity.  To attain profitability
these platforms are now using their leverage over small businesses to
increase their margins by extracting exorbitant commissions, simply for
providing access to customers.

Restrictions placed on dining services in the aftermath of COVID-19 have
further disadvantaged the restaurants already at risk of exploitation
making the issue, and a legislative action, even more urgent.

 
LEGISLATIVE HISTORY:

2021: S.1554B - Passed Senate / A.4127 (Fahy) - Consumer Affairs and
Protection

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S1554C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1554--C
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2021
                                ___________
 
 Introduced  by Sens. KAVANAGH, BIAGGI, BORRELLO, BROUK, COONEY, HOYLMAN,
   JACKSON, KRUEGER, PARKER -- read twice and ordered printed,  and  when
   printed  to  be  committed  to the Committee on Consumer Protection --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said committee -- committee discharged, bill amended,
   ordered reprinted as amended and  recommitted  to  said  committee  --
   recommitted to the Committee on Consumer Protection in accordance with
   Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the general business law,  in  relation  to  third-party
   food delivery service charges
 
   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-z to read as follows:
   § 391-Z. THIRD-PARTY FOOD DELIVERY SERVICE CHARGE. 1. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "DELIVERY FEE" MEANS A FEE CHARGED BY A THIRD-PARTY FOOD  DELIVERY
 SERVICE  FOR  PROVIDING A FOOD SERVICE ESTABLISHMENT WITH A SERVICE THAT
 DELIVERS FOOD FROM SUCH ESTABLISHMENT TO CUSTOMERS. THE  TERM  DOES  NOT
 INCLUDE ANY OTHER FEE THAT MAY BE CHARGED BY A THIRD-PARTY FOOD DELIVERY
 SERVICE  TO  A  FOOD  SERVICE ESTABLISHMENT, SUCH AS FEES FOR LISTING OR
 ADVERTISING THE FOOD  SERVICE  ESTABLISHMENT  ON  THE  THIRD-PARTY  FOOD
 DELIVERY  SERVICE  PLATFORM  OR  FEES  RELATED  TO PROCESSING THE ONLINE
 ORDER.
   (B) "FOOD SERVICE ESTABLISHMENT" MEANS A PLACE WHERE FOOD IS  PROVIDED
 FOR  INDIVIDUAL  PORTION  SERVICE  DIRECTLY TO THE CONSUMER WHETHER SUCH
 FOOD IS PROVIDED FREE OF CHARGE OR SOLD, AND WHETHER CONSUMPTION  OCCURS
 ON OR OFF THE PREMISES OR IS PROVIDED FROM A PUSHCART, STAND OR VEHICLE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06555-12-2
 S. 1554--C                          2

   (C)  "ONLINE  ORDER"  MEANS  ANY ORDER PLACED BY A CUSTOMER THROUGH OR
 WITH THE ASSISTANCE OF A PLATFORM PROVIDED BY A THIRD-PARTY FOOD  DELIV-
 ERY SERVICE, INCLUDING A TELEPHONE ORDER.
   (D)  "PURCHASE  PRICE" MEANS THE TOTAL PRICE OF THE ITEMS CONTAINED IN
 AN ONLINE ORDER THAT ARE LISTED ON THE MENU OF THE FOOD  SERVICE  ESTAB-
 LISHMENT  WHERE  SUCH ORDER IS PLACED. SUCH TERM DOES NOT INCLUDE TAXES,
 GRATUITIES AND ANY OTHER FEES THAT MAY MAKE UP THE  TOTAL  COST  TO  THE
 CUSTOMER OF AN ONLINE ORDER.
   (E)  "THIRD-PARTY  FOOD  DELIVERY  SERVICE"  MEANS ANY WEBSITE, MOBILE
 APPLICATION OR OTHER INTERNET SERVICE THAT OFFERS OR  ARRANGES  FOR  THE
 SALE  OF  FOOD  AND  BEVERAGES PREPARED BY, AND THE SAME-DAY DELIVERY OR
 SAME-DAY PICKUP OF FOOD AND BEVERAGES FROM, NO FEWER  THAN  TWENTY  FOOD
 SERVICE  ESTABLISHMENTS LOCATED IN THE STATE THAT ARE OWNED AND OPERATED
 BY DIFFERENT PERSONS.
   (F) "TRANSACTION FEE" MEANS A CHARGE FOR THE PROCESSING OF  A  PAYMENT
 FOR AN ONLINE ORDER.
   2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION:
   (A)  NO  THIRD-PARTY FOOD DELIVERY SERVICE SHALL CHARGE A FOOD SERVICE
 ESTABLISHMENT A DELIVERY FEE THAT TOTALS MORE THAN  FIFTEEN  PERCENT  OF
 THE PURCHASE PRICE OF EACH ONLINE ORDER;
   (B)  IT  SHALL  BE UNLAWFUL FOR A THIRD-PARTY FOOD DELIVERY SERVICE TO
 CHARGE A FOOD SERVICE ESTABLISHMENT ANY FEE OR FEES, OTHER THAN A DELIV-
 ERY FEE PERMITTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, FOR  THE  USE
 OF SERVICES PROVIDED BY SUCH THIRD-PARTY DELIVERY SERVICE THAT IS GREAT-
 ER  THAN  FIVE  PERCENT  OF  THE  PURCHASE  PRICE  OF EACH ONLINE ORDER,
 PROVIDED THAT SUCH CAP SHALL NOT APPLY TO A TRANSACTION FEE FOR  USE  OF
 THEIR  SERVICE.  IT  SHALL  FURTHER  BE  UNLAWFUL FOR A THIRD-PARTY FOOD
 DELIVERY SERVICE TO CHARGE A FOOD SERVICE  ESTABLISHMENT  A  TRANSACTION
 FEE  THAT TOTALS   MORE THAN THREE PERCENT OF THE PURCHASE PRICE OF EACH
 ONLINE ORDER, PROVIDED  HOWEVER THAT A THIRD-PARTY FOOD DELIVERY SERVICE
 MAY CHARGE  A FOOD SERVICE ESTABLISHMENT A TRANSACTION FEE OF MORE  THAN
 THREE  PERCENT  OF  THE  PURCHASE  PRICE OF AN ONLINE ORDER IF: (I) SUCH
 TRANSACTION FEE IS CHARGED TO THE FOOD SERVICE ESTABLISHMENT IN THE SAME
 AMOUNT AS THE  CHARGE IMPOSED UPON THE THIRD-PARTY FOOD DELIVERY SERVICE
 FOR SUCH  ONLINE ORDER, AND (II) SUCH THIRD-PARTY FOOD DELIVERY  SERVICE
 CAN  PROVIDE  PROOF  OF SUCH CHARGE IMPOSED UPON IT TO BOTH THE ATTORNEY
 GENERAL AND THE RELEVANT FOOD SERVICE ESTABLISHMENT UPON REQUEST.
   (C) ANY FEE OR OTHER CHARGES FROM A THIRD-PARTY FOOD DELIVERY  SERVICE
 TO A FOOD SERVICE ESTABLISHMENT BEYOND SUCH MAXIMUM FIVE PERCENT FEE PER
 ORDER  AND  A TRANSACTION FEE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVI-
 SION, AND A DELIVERY FEE COLLECTED PURSUANT TO  PARAGRAPH  (A)  OF  THIS
 SUBDIVISION, SHALL BE UNLAWFUL; AND
   (D)  NO  THIRD-PARTY  FOOD  DELIVERY  SERVICE SHALL REDUCE THE COMPEN-
 SATION, INCLUDING BUT NOT LIMITED TO, ANY TIP OR GRATUITY, PAID  TO  ANY
 WORKER, AS A RESULT OF COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
   3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
 MAY  BE  MADE  BY  THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
 STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE  AN
 INJUNCTION TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATION; AND
 IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE THAT THE
 DEFENDANT HAS, IN FACT, VIOLATED THIS  SECTION,  AN  INJUNCTION  MAY  BE
 ISSUED  BY  SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER
 VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS,  IN  FACT,  BEEN
 INJURED  OR  DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT MAY MAKE
 ALLOWANCES TO THE ATTORNEY GENERAL AND DIRECT RESTITUTION OF  AN  AMOUNT
 NOT  TO EXCEED THE AMOUNT OF FEES COLLECTED IN VIOLATION OF THIS SECTION
 S. 1554--C                          3
 
 BY A THIRD-PARTY FOOD DELIVERY SERVICE, ATTORNEYS' FEES, AND SUCH  OTHER
 REMEDIES  AS  THE  COURT  MAY DEEM APPROPRIATE. WHENEVER THE COURT SHALL
 DETERMINE THAT A VIOLATION OF THIS SECTION HAS OCCURRED, THE  COURT  MAY
 IMPOSE  A  CIVIL  PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH
 VIOLATION. EACH DAY A VIOLATION OF THIS SECTION IS  CONTINUED  AND  EACH
 FOOD  SERVICE  ESTABLISHMENT  CHARGED A FEE IN VIOLATION OF THIS SECTION
 SHALL CONSTITUTE A SEPARATE  VIOLATION.  IN  CONNECTION  WITH  ANY  SUCH
 PROPOSED  APPLICATION  THE  ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF
 AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
 ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   4.  THIS SECTION SHALL NOT ANNUL, ALTER, IMPAIR OR  AFFECT  THE  LAWS,
 ORDINANCES,  REGULATIONS OR RULES OF LOCAL GOVERNMENTS THAT HAVE ADOPTED
 OR AMENDED LOCAL LAWS, ORDINANCES, REGULATIONS OR RULES NOT INCONSISTENT
 WITH THIS SECTION, INCLUDING WITHOUT LIMITATION CITIES WITH A POPULATION
 OF ONE MILLION OR MORE, WHILE SUCH LOCAL LAWS,  ORDINANCES,  REGULATIONS
 OR RULES REMAIN IN EFFECT.
   § 2. This act shall take effect immediately.

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Senate Bill S1554B

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Jan 19, 2021 - Floor Vote

Floor Vote: Jan 19, 2021

Jan 19, 2021 - Rules Committee Vote

Rules Committee Vote: Jan 19, 2021

Feb 8, 2022 - Consumer Protection Committee Vote

Consumer Protection Committee Vote: Feb 8, 2022

Jan 19, 2021 - Consumer Protection Committee Vote

Consumer Protection Committee Vote: Jan 19, 2021

Bill Amendments

2021-S1554 - Details

2021-S1554 - Summary

2021-S1554 - Sponsor Memo

2021-S1554 - Bill Text download pdf

2021-S1554A - Details

2021-S1554A - Summary

2021-S1554A - Sponsor Memo

2021-S1554A - Bill Text download pdf

co-Sponsors

2021-S1554B - Details

2021-S1554B - Summary

2021-S1554B - Sponsor Memo

2021-S1554B - Bill Text download pdf

co-Sponsors

2021-S1554C (ACTIVE) - Details

2021-S1554C (ACTIVE) - Summary

2021-S1554C (ACTIVE) - Sponsor Memo

2021-S1554C (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1554B

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Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Bill Amendments

2021-S1554 - Details

2021-S1554 - Summary

2021-S1554 - Sponsor Memo

2021-S1554 - Bill Text download pdf

2021-S1554A - Details

2021-S1554A - Summary

2021-S1554A - Sponsor Memo

2021-S1554A - Bill Text download pdf

co-Sponsors

2021-S1554B - Details

2021-S1554B - Summary

2021-S1554B - Sponsor Memo

2021-S1554B - Bill Text download pdf

co-Sponsors

2021-S1554C (ACTIVE) - Details

2021-S1554C (ACTIVE) - Summary

2021-S1554C (ACTIVE) - Sponsor Memo

2021-S1554C (ACTIVE) - Bill Text download pdf

Comments