§ 48–651. Third-party food delivery platforms.
*NOTE: This section was created by temporary legislation that will expire on October 13, 2022.*
(a) A person, corporation, partnership, or association operating a third-party food delivery platform within the District shall register with the Department.
(b) Notwithstanding any provision of District law, it shall be unlawful for a person to cause a third-party food delivery platform to charge a restaurant:
(1) A commission fee for use of the platform's services for delivery that totals more than 15% of the purchase price per online order; or
(2) A commission fee for use of the platform's services that totals more than 5% of the purchase price per online order where the platform does not provide delivery of an order, including orders that are picked up from the restaurant by the customer, or for which the restaurant provides its own delivery service.
(c) The limits on fees in subsection (b) of this section shall not apply to fees for advertising or promotions.
(d) It shall be unlawful for a person to cause a third-party food delivery platform to reduce the compensation rate paid to a delivery service driver, or garnish gratuities, in order to comply with subsection (b) of this section.
(e) At the time a final price is disclosed to a customer for the intended purchase and delivery of food from a restaurant through a third-party food delivery platform, and before that transaction is completed by the customer, the third-party food delivery platform shall disclose to the customer, in plain language and in a conspicuous manner, any commission, fee, or any other monetary payment charged to the customer by the third-party food delivery platform.
(f)(1) A person who violates this section shall be subject to a fine of not less than $250 and not more than $1,000 for each such violation.
(2) A violation of this section shall be a civil infraction for purposes of Chapter 18 of Title 2.
(g) For the purposes of this section, the term:
(1) "Online order" means an order placed by a customer through a platform provided by the third-party food delivery service for delivery or pickup within the District.
(2) "Purchase price" means the menu price of an online order, excluding taxes, gratuities or any other fees that may make up the total cost to the customer of an online order.
(3) "Restaurant" shall have the same meaning as provided in § 25-101(43).
(4) "Third-party food delivery platform" means any website, mobile application, or other internet service that offers or arranges for the sale of food and beverages prepared by, and the same-day delivery or same-day pickup of food and beverages from, restaurants.
(h) The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this section.
(i) Nothing in this section limits or otherwise impacts the requirement of a third-party food delivery platform to collect and remit sales tax imposed under Chapter 20 of Title 47.