Chapter 6A. Third-party Food Delivery.

§ 48–651. Definitions.

For the purposes of this chapter, the term:

(1) "Agreement" means the written contract between a restaurant and a third-party meal delivery platform required by this chapter.

(2) "Core delivery service" means a service that lists a restaurant and makes the restaurant discoverable on all modalities or platforms offered by a third-party meal delivery platform, including any website, mobile application, or other internet service where a third-party meal delivery platform lists restaurants and facilitates or performs the delivery through employees or independent contractors of the third-party meal delivery platform of food or beverages from restaurants to customers. The term "core delivery service" does not include any other service that may be provided by a third-party meal delivery platform to a restaurant, including advertising or other promotional services, search engine optimization, business consulting, or credit card processing.

(3) "Online order" means a food or beverage order placed by a customer through a third-party meal delivery platform for delivery or pickup from a restaurant in the District of Columbia.

(4) "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.

(5) "Restaurant" means an establishment that is held out to and known by the public as a food-service establishment.  The term includes an establishment defined in § 25-101(43) and (52).

(6) "Third-party meal 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, and the same-day delivery or same-day pickup of food and beverages from, restaurants.

(7) "URL" (Uniform Resource Locator) means a web address.

§ 48–652. Restrictions on third-party meals delivery platforms.

*NOTE: This section includes amendments by emergency legislation that will expire on June 23, 2024. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Past Permanent Version.*

(a) A third-party meal delivery platform shall not arrange for the delivery of an order from a restaurant without first obtaining an agreement with the restaurant expressly authorizing the third-party meal delivery platform to collect meal orders and deliver meals prepared by the restaurant.

(b) An agreement shall not include any provision, clause, or covenant that requires a restaurant to indemnify a third-party meal delivery platform, any independent contractor acting on behalf of the third-party meal delivery platform, or any registered agent of the third-party meal delivery service for any damages or harm that may occur after the restaurant's product leaves the restaurant.

(c)(1) A third-party meal delivery platform shall not advertise or otherwise market a telephone number, website, or application software featuring or marketing a restaurant without an agreement.

(2) Upon expiration or termination of an agreement, the third-party meal delivery platform shall transfer and assign any telephone number and URL for a website used exclusively to advertise or market the restaurant to the restaurant for the restaurant's use.

(d) A third-party meal delivery platform that does not have an agreement shall not use the name, likeness, trademark, or intellectual property of a restaurant on its platform.

(e) A third-party meal delivery platform shall not exclude any restaurant with whom the third-party meal delivery platform has an agreement from the relevant search results of a customer within 4 miles of a restaurant.

(f)(1) A third-party meal delivery platform shall not reduce the delivery radius of any restaurant below 4 miles, based on the level or percentage of commissions paid.

(2) Nothing in this subsection shall prohibit a third-party meal delivery platform from offering a larger delivery radius for a fee.

(g) A third-party meal delivery platform shall not reduce the number of food delivery workers available to deliver an online order from a restaurant with whom the third-party meal delivery platform has an agreement based solely on the level or percentage of commissions paid. Nothing in this subsection shall prohibit a third-party meal delivery platform from offering priority delivery services for a fee.

§ 48–653. Customer disclosure requirement.

In addition to the price of items being selected for purchase and delivery from a restaurant through a third-party meal delivery platform, the third-party meal delivery platform shall disclose to the customer, regardless of where the restaurant is located, in plain language and in a conspicuous manner, any commission, fee, or other monetary payment to be charged to the customer by the third-party meal delivery platform ("charges"):

(1) The subtotal of charges on the product page along with the price of the item as each item is selected; and

(2) The total of charges and prices before the transaction is completed and the customer is charged.

§ 48–654. Limitation on fees.

*NOTE: This section includes amendments by temporary legislation that will expire on March 29, 2024. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

(a) Notwithstanding any other local law, resolution, rule, or regulation relating to limitations on the fees charged to restaurants by third-party meal delivery services, no third-party meal delivery service may charge a restaurant a fee, commission, or charge per online order that totals more than 15% of the purchase price of the online order or totals more than 5% of the purchase price per online order where the third-party meal delivery service does not deliver the order.

(b) The fee limits in subsection (a) of this section shall not apply to a third-party meal delivery service that:

(1) Offers all restaurants the option to obtain core delivery service for a total fee, commission, or charge that is no more than 15% of the purchase price of the online order, without requiring the purchase of additional services; and

(2) Within 30 days of March 10, 2023, notifies all restaurants that have an existing agreement with the third-party meal delivery service of the option described in paragraph (1) of this subsection.

§ 48–655. Third-party delivery platform [service]; registration requirement.

A third-party food delivery service operating in the District shall register with the Department of Licensing and Consumer Protection.

§ 48–656. Rules; enforcement.

(a) The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, shall issue rules to implement this chapter.

(b)(1) A violation of this chapter, or rule issued pursuant to this chapter, shall be a violation of Chapter 39 of Title 28 enforceable by the Attorney General as an unfair or deceptive trade practice pursuant to § 28-3904.

(2) In addition to or in lieu of an enforcement action brought pursuant to paragraph (1) of this subsection, the Attorney General, in the name of the District of Columbia, shall have the exclusive authority to commence a civil action in the Superior Court of the District of Columbia, or any other court of competent jurisdiction, for damages in an amount not to exceed $5,000 or the amount of actual damages, whichever is greater, attorney fees and costs, and injunctive or other appropriate relief for a violation of this chapter.