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a. License required. It shall be unlawful for any person to operate a third-party food delivery service without first having obtained a license therefor issued pursuant to this subchapter. All licenses issued pursuant to this subchapter shall be valid for no more than two years and expire on a date the commissioner prescribes by rule.
b. License application. An application for any license required under this subchapter or for any renewal thereof shall be made to the commissioner in such form or manner as the commissioner shall prescribe by rule, provided that such application shall include, but need not be limited to:
1. The address of the applicant;
2. A list of all websites, mobile applications, or other third-party food delivery platforms, with relevant uniform resource locators, that the applicant uses or plans to use to conduct the business of a third-party food delivery service;
3. An e-mail address that the department can use to send the applicant license application materials, official notifications, or other correspondence; and
4. If the applicant is a non-resident of the city, the name and address of a registered agent within the city upon whom process or other notifications may be served.
c. Fee. There shall be a biennial fee of $200 for a license to operate a third-party food delivery service.
(L.L. 2021/100, 9/26/2021, eff. 1/24/2022)
a. A license to operate a third-party food delivery service shall be granted in accordance with the provisions of this subchapter and any rules promulgated by the commissioner thereunder.
b. Restrictions on third-party food delivery service operations.
1. It shall be unlawful for a third-party food delivery service to solicit a gratuity for a food delivery worker hired, retained or engaged by such third-party food delivery service from a customer in connection with an online order unless such third-party food delivery service discloses, in plain language and in a conspicuous manner, the following information before or at the same time as such gratuity is solicited:
(i) The proportion or fixed amount of each gratuity that is distributed to a food delivery worker who delivers the goods purchased; and
(ii) How gratuities are distributed to a food delivery worker, including whether such gratuities are distributed immediately or otherwise, and whether such gratuities are distributed in cash or otherwise.
2. For each transaction, a food delivery worker hired, retained or engaged by a third-party food delivery service shall be notified of how much the customer paid as gratuity, if such customer paid additional gratuity, and if such customer decided to remove the gratuity and the reason for such removal, if such a reason is provided. Upon any change or payment of gratuity, a third-party delivery service shall notify such food delivery worker and credit such gratuity to such worker's account.
3. A third-party food delivery service shall disclose to a food delivery worker hired, retained or engaged by such third-party food delivery service, the aggregate amount of compensation and aggregate amount of gratuities earned by such food delivery worker on the day after such compensation and gratuities were earned.
(L.L. 2021/100, 9/26/2021, eff. 1/24/2022; Am. L.L. 2021/110, 10/24/2021, eff. 1/24/2022)
a. It shall be unlawful for a third-party food delivery service to charge a food service establishment a delivery fee that totals more than 15% 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 delivery fee and a transaction fee, for the use of their service that totals more than 5% of the purchase price of each online order.
c. It shall be unlawful for a third-party food delivery service to charge a food service establishment a transaction fee that totals more than 3% 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 3% 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 department and the relevant food service establishment upon request.
d. No later than September 30, 2023, and every two years thereafter, the commissioner shall submit to the speaker of the council and the mayor a report on the fee cap pursuant to this section, which shall include but not be limited to recommendations related to either the maintenance or adjustment of the fee cap as set forth in this section, in consideration of factors from the immediately preceding two years, such as:
1. The effect of the cap on third-party food delivery services and food service establishments;
2. Whether the cap affects wages and working conditions for persons who deliver food or beverages for third-party food delivery services;
3. Products that third-party food delivery services offer to food service establishments for listing, processing and marketing;
4. The number of complaints made to the department related to the alleged violations of this subchapter and the number of violations issued under this subchapter;
5. The total amount of penalties imposed as a result of violations of this subchapter; and
6. The amount of restitution recovered on behalf of food service establishments pursuant to this subchapter.
(L.L. 2021/103, 9/26/2021, eff. 1/24/2022)
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