Home California Bill Sets Statewide Cap on Fees Charged by Delivery App Companies

Bill Sets Statewide Cap on Fees Charged by Delivery App Companies

by ECT
Lorena Gonzalez

As cities and counties were working on their own ordinances to cap the fees charged by Delivery App companies, Assemblywoman Lorena Gonzalez introduced Assembly Bill 286 which creates a statewide cap of 15%.

Here is the Press Release issued today:

SACRAMENTO – Food delivery companies like DoorDash and Uber Eats have profited off of struggling restaurants by charging a variety of fees, commissions and costs for their services, cutting into already thin profit margins for these businesses. Today, California State Assemblywoman Lorena Gonzalez (D-San Diego) announced new legislation, Assembly Bill 286, to create a more fair food delivery marketplace for restaurants.

“Restaurants are being taken for a ride by multi-billion dollar food delivery companies,” Assemblywoman Gonzalez said. “The piecemeal approach to this problem by local governments is not enough. We need to create statewide rules that protect struggling businesses against these price-gouging tactics.”

Gonzalez’s AB 286 follows the recent local ordinances passed in Los Angeles, San Francisco and other cities in California by capping fees charged to restaurants at 15 percent of the menu-listed price of an online order, not including taxes, gratuities, and any other fees or costs that may make up the total amount charged to the customer.

AB 286 would require food delivery apps to give their customers and partnered restaurants an accurate, clearly identified and itemized cost breakdown of each transaction. Delivery app companies would be prohibited from taking any portion of money intended to be a tip or gratuity for the delivery driver.

AB 286 continues the effort to establish basic standards around fair food delivery services that Assemblywoman Gonzalez started last year with the Fair Food Delivery Act, her legislation AB 2149 (2020), which ensures restaurants have explicitly agreed to delivery services before a deliver app company can offer their food.

Assemblywoman Lorena Gonzalez represents California’s 80th Assembly District, located in southern San Diego County, including the cities of San Diego, Chula Vista, and National City. She serves as Chair of the Assembly Committee on Appropriations and Chair of the Assembly Select Committee on Latina Inequities. For more information on Assemblywoman Lorena Gonzalez, visit http://asm.ca.gov/gonzalez

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