California Bill Requires Disclosure of Hidden Fees From Food Delivery Apps

Published on April 10, 2024

Online delivery platforms such as GrubHub, DoorDash and UberEats would be required to disclose hidden fees to restaurants and customers under a bill introduced in the California Legislature this year. Senate Bill 1490, introduced by Los Angeles-based Sen. María Durazo, would require the platforms to disclose the amounts of the fees. Under current law they need to disclose only that there is a fee, but not the amount. The bill would also “ban delivery platforms from limiting the value or number of transactions disputed by a restaurant,” said a statement from the Digital Restaurant Association. According to the statement, the bill would require platforms to offer a mechanism for removing a restaurant from the platform, and mandate that platforms not penalize restaurants that refuse a service offered by the platform....

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