SB 574 - Under this act, a food delivery platform, defined as a business that acts as a third-party intermediary for 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 and shall not, without prior agreement, inflate or alter a restaurant's pricing. The delivery platform shall clearly provide to the ultimate consumer a real-time mechanism to express order concerns directly to the delivery platform.

Where there is no agreement from the restaurant for food delivery by a delivery platform, a delivery platform shall not make any offer to a consumer to deliver or pickup from the restaurant, attempt to charge the restaurant any fee, include the restaurant in the delivery platform's services, or use the restaurant's likeness in any of the delivery platform's materials. When there is only written consent for food delivery from the restaurant, a delivery platform shall not charge the restaurant any fee, shall not inflate or alter the restaurant's pricing, and shall 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).


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