SACRAMENTO – When a customer orders a meal through an app or a restaurant partners with a food delivery app company, both are left in the dark about the prices they are actually being charged. Today, Assemblywoman’s Gonzalez’s AB 286 to require food delivery platforms to provide customers and restaurants a clear, itemized cost breakdown of each transaction will be sent to the Governor’s desk for consideration.
“We’ve seen reports of restaurant owners losing money on food delivery app orders because of hidden fees from companies like DoorDash, UberEats and GrubHub,” Assemblywoman Gonzalez (D-San Diego) said. “AB 286 is about providing much-needed transparency so restaurants and customers know exactly what they’re being charged up front, and gives restaurant owners the choice to share with their customers how much from the transaction is actually going to their business.”
Food delivery apps transactions obscure how much money is actually going to individual restaurants. This lack of transparency makes it difficult for consumers to support local restaurants when they can’t make an informed choice. Under AB 286, restaurants can opt to have each fee and commission they’re being charged by a food delivery platform disclosed directly to the customer. To give restaurants additional control over these transactions, AB 286 would also ensure that restaurants and other food facilities ultimately set the price of food and beverages that are sold through delivery apps.
For food delivery workers who are completing these orders, the bill provides protections against tip theft by clearly stating they are entitled to the full amount of their customer tips and gratuities after completing an order. A 2019 report in the New York Times revealed DoorDash was using customer tips to subsidize workers’ base pay, which was followed by the company agreeing to pay $2.5 million to settle a lawsuit alleging DoorDash kept customer tips that were intended to go to their delivery drivers.
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