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A new law regulating third-party food delivery went into effect
in Florida on April 2, 2024. In an effort to help restaurants curb
unauthorized third-party delivery business practices, Florida Gov.
Ron DeSantis has signed into law CS/SB 676, which was passed by the Florida
Legislature during its 2024 Regular Session. The legislation
regulates third-party food delivery apps by requiring that food
delivery platforms (i) obtain permission from each food service
establishment they arrange orders from and (ii) disclose
transaction costs to each consumer who uses their service. The law
became effective upon the governor’s signature on April 2,
2024.
‘Food Delivery Platform’ Defined
The bill defines the term “food delivery platform” to
mean a business that acts as a third-party intermediary for the
consumer by taking and arranging for the delivery or pickup of
orders from multiple food service establishments.
The bill does not apply to delivery or pickup orders
placed directly with, and fulfilled by, a food service
establishment.
‘Food Service Establishment’ Defined
Under the bill, the term “food service establishment”
has the same meaning as the term “public food service
establishment,” as defined in s. 509.013(5), F.S. In general, this means any
place where food is (i) prepared, served, or sold for immediate
consumption on or in the vicinity of the premises; (ii) called for
or taken out by customers; or (iii) prepared prior to being
delivered to another location for consumption.
Consent Required
The bill prohibits a food delivery platform from taking and
arranging for the delivery or pickup of orders from a food service
establishment without the express consent of that food service
establishment. The food service establishment’s consent must be
in either a written or an electronic format.
Cost and Other Disclosures Required
Under the bill, a food delivery platform must itemize and
clearly disclose to the consumer the cost breakdown of each
transaction. The food delivery platform must also provide the
consumer with information about the delivery, including the
anticipated date and time of the delivery and confirmation that the
order has been successfully delivered or that the delivery cannot
be completed.
Customer Contact
By July 1, 2025, the bill requires a food delivery platform to
provide a food service establishment with a method of contacting
the consumer (i) while the order is prepared and being delivered
and (ii) for up to two hours after the order is picked up from the
food service establishment for delivery to the consumer. Further,
the bill requires the food delivery platform to provide a food
service establishment a method, by July 1, 2025, for responding to
a consumer’s ratings or reviews.
Listings on Food Delivery Platforms
The bill also requires a food delivery platform to remove a food
service establishment’s listing on the food delivery platform
within 10 days after receiving the food service establishment’s
request for removal, unless there is an existing agreement between
the two parties stating otherwise as provided in the bill.
Pricing Adjustments
Pursuant to the bill, a food delivery platform may not, without
an agreement with the food service establishment, intentionally
inflate, decrease, or alter a food service establishment’s
pricing.
Agreements with Food Delivery Platforms Must Meet Specific
Requirements
The bill specifies the requirements for the agreement between a
food delivery platform and a food service establishment, including
clearly stating all fees, commissions, and charges that the food
service establishment is expected to pay or absorb, policies
related to alcoholic beverages, insurance requirements, the
collection and remitting of taxes, and how disputes will be
resolved.
The agreement between the food delivery platform and the food
service establishment may not include a provision that requires a
food service establishment to indemnify the food delivery platform,
or any employee, contractor, or agent of the food delivery
platform, for any damage or harm caused by the acts or omissions of
the food delivery platform or any of its employees, contractors, or
agents.
A food delivery platform may also not unreasonably limit the
value or number of transactions that may be disputed by a food
service establishment with respect to orders, goods, or delivery
errors for determining responsibility for errors and reconciling
disputed transactions.
Enforcement and Penalties
The bill authorizes the Division of Hotels and Restaurants
within the Florida Department of Business and Professional
Regulation to enforce the provisions in the bill by (i) issuing
cease and desist orders upon a finding of probable cause that there
is a violation and (ii) seeking an injunction or writ of mandamus
against persons who violate the notice to cease and desist.
The bill authorizes the Division to issue a civil penalty of up
to $1,000 per offense for each violation and provides that
the Division is entitled to attorneys’ fees and costs if it is
required seek enforcement of a notice for a penalty under the
Administrative Procedures Act. The bill expressly preempts the
regulation of food delivery platforms to the state.
Representatives of the major food delivery apps have generally
been receptive to the legislation, stating that they appreciate the
collaborative approach as to how platforms can support local
restaurants, while protecting the privacy of those who use their
platforms without jeopardizing their personal information.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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