SB 574
Establishes provisions regulating food delivery platforms
LR Number:
Last Action:
4/13/2021 - SCS Voted Do Pass S Small Business and Industry Committee (2691S.02C)
Journal Page:
Calendar Position:
Effective Date:
January 1, 2022

Current Bill Summary

SCS/SB 574 - Under this act, a food delivery platform, defined as a business that acts as a third-party intermediary by taking and arranging for the delivery or pickup of orders from multiple restaurants for ultimate consumers, shall not offer services to ultimate consumers without first filing a certificate of formation or registration with the Secretary of State. Such delivery platform shall not use a restaurant's likeness in a manner that could reasonably be interpreted to falsely suggest sponsorship or endorsement by the restaurant. The delivery platform shall clearly provide to the ultimate consumer a mechanism to express order concerns directly to the delivery platform.

Where there is no agreement between the restaurant and the food delivery platform, a food delivery platform shall not take and arrange for the delivery or pickup of an order from the restaurant; attempt to charge the restaurant, or expect the restaurant to pay or absorb, any fee, commission, or charge; or intentionally inflate or alter a restaurant's pricing. A food delivery platform shall, unless otherwise agreed to, remove the restaurant from the platform's services within 10 days following a request by the restaurant.

Any agreement between the delivery platform and the restaurant shall be in writing, clearly identify any fee, commission, or charge the restaurant will be required to pay or absorb, and shall not include any provision requiring a restaurant to indemnify the delivery platform, or any employee, independent contractor, or agency of the delivery platform, for any damages or harm caused by the actions or omissions of the delivery platform. Any agreement that is contrary to this provision shall be void and unenforceable.

A restaurant may bring an action to enjoin a violation of this act, as described in the act.

This act has an effective date of January 1, 2022.

This act is similar to HB 1280 (2021).



No Amendments Found.