AB 286: Food delivery: purchase prices and tips.

Existing law, the Fair Food Delivery Act of 2020, defines a food delivery platform as an online business that acts as an intermediary between consumers and multiple food facilities, as defined, to submit food orders and arrange for the delivery of the order, and prohibits a food delivery platform from arranging for the delivery of an order from a food facility without first obtaining an agreement with the food facility.

This bill would make it unlawful for a food delivery platform to charge a customer any purchase price, as defined, for food or beverage that is higher than the price posted on the food delivery platforms internet website by the food facility at the time of the order. The bill would make it unlawful for a food delivery platform to retain any portion of amounts designated as a tip or gratuity. The bill would require a food delivery platform to pay any tip or gratuity for a delivery order, in its entirety, to the person delivering the food or beverage, and to pay any tip or gratuity for a pickup order, in its entirety, to the food facility. The bill would require a food delivery platform to disclose to the customer and the food facility a cost breakdown of each transaction, including, with certain exceptions, prescribed information. The bill would make the provisions of the act severable.