A bill that removes hidden fees from food delivery app companies, as well as increasing transparency and protecting worker tips, was signed by Gavin Newsom on Tuesday.
Assembly Bill 286, drafted by Congresswoman Lorena Gonzalez (D-San Diego), will specifically make it illegal to charge a customer for any purchase price for food or drink that exceeds the price displayed on the site. Internet of food delivery platform by catering establishment. The AB 286 will also oblige meal delivery platforms not to withhold any part of the amount in tips from delivery people, tips must either go directly to the individual delivery person or to the restaurant to be paid to the delivery person later. Finally, all charges and purchases must now be indicated in advance on the receipt to avoid hidden charges charged by the app company.
The bill has gone through a tumultuous nine months in the California legislature, with Gonzalez heavily amending the bill on several occasions in an effort to get it through. While it originally contained a section of the bill to detail costs and be more transparent, it also had many limitations, such as limiting the cost of delivering food to 15% of the purchase price, a action that would have resulted in a large loss with small orders. Other amendments continued to dilute the language, as delivery companies and those against parts of the bill demanded a balance allowing delivery companies, such as DoorDash, Grubhub, Postmates and Uber Eats, to continue operating. while offering customers an open view of loads and tip protections for delivery people.
The changes led many Democrats, as well as some Republicans on the fence, to switch to a yes or no vote at all, allowing it to pass through the Senate in August and the Assembly in September.
App delivery workers, consumer advocates and supporters of the laws celebrated the signing of the bills on Tuesday, noting that AB 286 is just one of many new laws aimed at bringing more regulation to the industry still new.
“Concert businesses have profited during the pandemic by keeping consumers and restaurants in the dark about the true cost of their services,” Congresswoman Gonzalez said in a statement Tuesday. “Now small restaurants and their customers will know what they are billed upfront and see exactly what is actually benefiting the restaurant. “
In a follow-up Tweeter she added that “Our AB 286 food delivery bill was signed by Gavin Newsom today! All charges must be disclosed, tips must go to the workers. This, along with our salary theft bill means that if DoorDash or any other app collects tips from drivers, regardless of which executive signed on, it could go to jail! “
This, along with our salary theft bill means that if @DoorDash or any other app picks up tips from drivers, whichever executive signed it, he could go to jail! ??
– Lorena Gonzalez (@LorenaSGonzalez) October 6, 2021
While delivery companies had yet to react to the new bill on Wednesday, many restaurateurs had mixed feelings about the new bill.
“We have a real love-hate relationship with (the delivery companies),” said Annette, co-owner of a restaurant in Los Angeles. “During the pandemic, when everyone was confined, these companies helped us survive. At one point, we calculated that we might have a few months to go on. We were in a back room doing the invoices, and when we got out we saw that a bunch of orders had arrived with a bunch of guys from Grubhub on the way.
“On the other hand, they can really fuck you. I know a lot of restaurants before the pandemic that did NOT want these guys to come pick up orders because it cut down on their restaurant deliveries and they fought tooth and nail to get delivery companies to take their restaurants off their site. And during the pandemic, no one knew all of the nailed down charges, it seems. “
“The bill was necessary but it also seemed out of the base. With restrictions now increasingly being removed as the pandemic wanes, restaurants want to see more choice for these businesses to be used. This is what we are really looking for. Don’t waste any money.
While Newsom vetoed other delivery app bills on Tuesday, such as AB 1444, which reportedly regulated agreements between restaurants and delivery apps, nothing else Newsom signed off on came to fruition. turned out to be directly related to AB 286, which is expected to become law on January 1, 2022.