For purposes of this chapter, the following terms shall mean:
(a) "Commission" means a fee paid to a third-party food delivery service for performing a transaction or a service.
(b) "Eating and drinking establishment" means a restaurant, bar, tavern, cabaret, fast-food business, nightclub, pub, dining room, dinner theater, and similar uses.
(c) "Person" means an organization, corporation for profit or not for profit, partnership, limited partnership, joint venture, unincorporated association, estate, trust, or other commercial or legal entity.
(d) "Purchase price" means the menu price of an online order, minus any applicable coupon or promotional discount provided to the customer by the eating and drinking establishment. Such price excludes taxes, gratuities, and any other fees that make up the total cost to the consumer of an online order.
(e) "Third-party food delivery service" means any person who is engaged in operating a website, mobile application, or other internet service business that offers or arranges for the sale and/or delivery of food and beverages prepared by eating and drinking establishments.
(Ord. No. 966-2020. Passed 12-9-20, eff. 12-15-20)
(a) No third-party food delivery service shall charge an eating and drinking establishment a commission per online delivery or pick-up order for the use of its service that totals more than fifteen percent (15%) of the purchase price of the online order.
(b) If a third-party food delivery service charges an eating and drinking establishment a commission that exceeds fifteen percent (15%) of the purchase price of a placed online order, the eating and drinking establishment shall provide written notice to the third-party food delivery service requesting a refund of the amount of commission paid in excess of the allowable fifteen percent (15%) within seven (7) business days. No third-party food delivery service shall fail to issue a refund within seven (7) business days of receipt of the notice.
(c) An eating and drinking establishment may agree to pay a third-party food delivery service a fee that exceeds the limits established in Section 687B.02(a) and (b) to obtain optional products or services, including advertising, marketing, or access to customer subscription programs, in addition to delivery or pick-up service.
(Ord. No. 966-2020. Passed 12-9-20, eff. 12-15-20)
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