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Assemblywoman Lorena Gonzalez at the Governor's signing of AB 5. (Photo: Official website Assemblywoman Lorena Gonzalez)

AB 286 Limits Food Delivery Fees

Bill requires a food delivery platform to disclose to the customer an itemized cost breakdown of each transaction

By Chris Micheli, October 8, 2021 2:29 am

On October 5, 2021, Governor Gavin Newsom signed into law Assembly Bill 286 by Assemblywoman Lorena Gonzalez (D-San Diego), to limit charges by food delivery platforms.

Section One of the bill amends Section 22598 of the Business and Professions Code to add definitions of “online order” and “purchase price.” Existing law already provides definitions of “food delivery platform” and “food facility.”

Section Two of the bill adds Business and Professions Code Section 22599.1 to make it unlawful for a food delivery platform to do either of the following:

  • Charge a customer any purchase price for food or beverage that is higher than the price posted on the food delivery platform’s internet website by the food facility at the time of the order.
  • Retain any portion of amounts designated as a tip or gratuity. Any tip or gratuity for a delivery order must be paid by a food delivery platform, in its entirety, to the person delivering the food or beverage. Any tip or gratuity for a pickup order must be paid by a food delivery platform, in its entirety, to the food facility.

In addition, the bill requires a food delivery platform to disclose to the customer and to the food facility an accurate, clearly identified, and itemized cost breakdown of each transaction, including, but not limited to, the following information:

  • The purchase price of the food and beverage.
  • A notice, if applicable, that the food delivery platform charges a fee, commission, or cost to the food facility, unless the food facility directs that the food delivery platform disclose to customers the delivery fee charged to the food facility and each fee, commission, or cost charged to the food facility.
  • Each fee, commission, or cost charged to the customer by the food delivery platform.
  • Any tip or gratuity.

Section Three of the bill adds Business and Professions Code Section 22599.6 to provide a severability clause.

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5 thoughts on “AB 286 Limits Food Delivery Fees

  1. Seriously? Like the many other bills being put out do you see anything missing? How about focusing on some real issues that affect all Californians such has water and water storage, power generation, highway repair(instead of train to no where), homelessness. You know a lot of residents actually go and get their own food and don’t worry about delivery charges. I know, what a concept, elected officials doing the peoples work, go figure

  2. Assemblywoman Lorena Gonzalez (D-San Diego), is hell bent on destroying the little guys business while she receives a fat check from the Tax Payers of Communist-fornia.

  3. Artificially regulating delivery fees will destroy the delivery business. Piling on endless regulations will drive out thousand of businesses that have been barely holding on.

    Just wait until all the Covid paranoids lose their food deliveries! These people are mostly Democrats. HA!

  4. Lorena’s apparently tired of (over) paying for all those food deliveries she obviously consumes….

    Looks like the CA legislature is WAAAY into the weeds these days, writing all KINDS of REALLY IMPORTANT legislation… NOT….

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