The introduction of Senate Bill 1490 in California aims to bring transparency to online delivery platforms like GrubHub, DoorDash, and UberEats. The bill, spearheaded by State Senator MarĂa Durazo, requires these platforms to disclose hidden fees to both restaurants and customers. Currently, these platforms only need to disclose the existence of a fee without specifying the amount.
Additionally, the bill prohibits delivery platforms from restricting the value or number of disputed transactions by a restaurant. It also mandates that platforms offer a mechanism for restaurants to be removed from the platform and not penalize them for declining a service offered by the platform.
Senator Durazo highlighted the need for transparency in fees charged by these platforms, stating that customers and restaurants often face high and undisclosed fees when using these services. The bill aims to empower customers to make informed decisions when ordering from their favorite restaurants.
The bill has garnered support from the Digital Restaurant Association, which advocates for digital sustainability in the restaurant industry. The association emphasized the importance of transparency in fee structures to protect consumers and restaurants from unfair business practices by big tech food delivery apps.
The bill is scheduled to be heard by the Senate Judiciary Committee on April 16.
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