June 20, 2024 Featured Spotlight

CA SB 1490 Passes Assembly Privacy Committee

On June 18 2024, California State Assembly Committee on Privacy and Consumer Protection passed Senate Bill 1490 by a vote of 9 in favor, 0 opposed. The legislation brings transparency and equity to online food delivery and will now head to the full Assembly for a final vote.  This critical bill will provide important protections for restaurants including:

  • Requires disclosure of fees to the restaurant charged by a food delivery platform including specific rates for marketing, order processing, and delivery;
  • Stops food delivery platforms from penalizing restaurants that refuse certain services – food delivery platforms must inform restaurants of any fee or product changes especially if a restaurant declines a product or service; 
  • Allows restaurants to opt-in to the disclosure to consumers of the itemized breakdown of the transaction including purchase price, fees/commissions charged to the restaurant, any fees charged to the customer and tips;
  • Requires disclosure of order status to the restaurant and customer including delivery method, anticipated date and time of delivery and confirmation of successful or unsuccessful delivery;
  • A mechanism for removing a restaurant from a food delivery platform. 

The Digital Restaurant Association (DRA) would like to thank Senator Durazo for her leadership with SB 1490 and the Assembly Committee on Privacy and Consumer Protection for their support.  Restaurants and consumers alike deserve transparency to know exactly what fees are charged and the order status.  This California legislation is taking a step toward protecting restaurants from unfair and harmful business practices of the big tech food delivery apps.

The Digital Restaurant Association, a non-profit focused on helping local restaurants thrive in a digital world, will continue to support measures like SB 1490 to protect local restaurants from the big delivery platforms, including best practices of fee transparency, improving restaurants’ control over the customer experience, and enhancing information sharing to better serve customers.