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New York recently approved a cap on delivery fees allowed by third-party apps like DoorDash, GrubHub, and Uber Eats.
Both New York City and New York state lawmakers have passed measures to limit delivery fees from third-party food delivery apps. These measures aim to protect consumers from abusive or hidden fees which can sharply increase the cost of their delivery order.
Early into the coronavirus pandemic, New York City passed a proposal to cap delivery fees at 20 percent of an order’s total, the New York Post reported. Specifically, the law limits delivery charges to 15 percent and any other fees to 5 percent. With some delivery apps charging as much as 40 percent of an order’s total in additional fees, this measure meant serious savings for New Yorkers.
GrubHub opposed the move early on, arguing these measures could result in increased costs for small businesses and delivery customers. The company also questioned the validity of the law, calling it an “overstep” in a statement to the BBC.
More recently, in January, the New York Senate approved two bills to change how third-party food delivery apps are allowed to charge delivery fees, according to Spectrum News.
The first bill limits delivery fees to 15 percent of the total order price. If approved by the New York State Assembly, the limit would be in effect during the COVID-19 public health emergency and for 90 days afterward. The bill follows outcry from restaurants after an increase in service and delivery charges.
The second bill gives restaurants more control over their services by requiring a valid agreement between restaurants and third-party delivery apps before the app can sell or advertise a restaurant’s products. With these agreements, restaurants can decide how third-party apps are allowed to promote and deliver their products.
Although the first bill was nearly unanimously supported and the second passed with bipartisan support, the New York State Assembly must pass both bills for them to go into effect.
These bills will go a long way toward protecting consumers and restaurants from abusive business practices. However, consumers may also be eligible to take legal action against businesses that charged them deceptive or hidden fees in the past.
Legal professionals are interested in speaking to consumers from Massachusetts and New York who were charged hidden fees by restaurants such as Chipotle, Chick-Fil-A, Sweetgreen, Burger King, McDonald’s, Buffalo Wild Wings, Panda Express, Panera, and Wendy’s, or third-party food delivery services such as Grubhub, Drizly, DoorDash, Caviar, Postmates, and Uber Eats.
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