(a) No third-party facilitator shall allow any customer to use such facilitator's application to arrange to use, or to use, a client's services or property unless such client has obtained all licenses required under this Code or under any other applicable law.
(b) Any third-party facilitator who violates subsection (a) of this section shall be notified in writing by the department of the fact of such violation and of the facilitator's duty to correct the violation of this section. If the facilitator fails to correct such violation by the date certain set forth in the written notice required under this subsection (b), the facilitator shall be fined up to $500.00 for the first violation of subsection (a) within any five-year period; up to $5,000.00 for the second violation of subsection (a) within any five-year period; and up to $10,000.00 for the third or any subsequent violation of subsection (a) within any five-year period. Each day that a violation continues shall constitute a separate and distinct offense. Mitigating factors that may be considered in determining the amount of the fine to be imposed against the third-party facilitator shall include the following: (1) proof that the facilitator had removed from its application the client engaged in the unlicensed business activity prior to date on which the written notice required under this subsection (b) was mailed or otherwise provided; (2) proof that the facilitator had called 311 to report the client's unlicensed business activity prior to the date on which the written notice required under this subsection (b) was mailed or otherwise provided; (3) proof that the facilitator had filed a complaint with 311 online through www.cityofchicago.org to report the client's unlicensed business activity prior to the date on which the written notice required under this subsection (b) was mailed or otherwise provided; or (4) any other mitigating factor set forth in rules duly promulgated by the commissioner.
(c) As used in this section:
"Application" means any software installed and available for download on a computer, tablet, smart phone or other electronic device, or any website, mobile application or platform, internet-enabled application or platform, digital platform or internet service used by a third-party facilitator to connect the facilitator's customers with the facilitator's clients.
"Client" means any person who has an agreement, whether express or implied, with a facilitator to directly or indirectly provide services of any type to the facilitator's customers or to allow the facilitator's customers to directly or indirectly use such client's property for any purpose if such client requires a license under this Code or under any other law to engage in the applicable business activity.
"Customer" means any person who uses a facilitator's application to arrange to use or to use any services or property owned or leased by a facilitator's client.
"Property" means real or personal property.
"Third-party facilitator" or "facilitator" means any person who operates or maintains an application to connect customers with clients. The term "third-party facilitator" or "facilitator" does not include: (1) short term residential rental intermediaries as that term is defined in Section 4-13-100; or (2) transportation network providers as defined in Section 9-115-010; or (3) any other category of persons exempt from this section by express provisions of this Code.
(Added Coun. J. 6-25-21, p. 31925, Art. V, § 2; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 1)