California AB 578

Existing law imposes various business practice restrictions on a food delivery platform, defined as an online business that acts as an intermediary between consumers and multiple food facilities to submit food and beverage orders from a consumer to a participating food facility, and to arrange for, or to complete, the delivery of the order, as prescribed. Existing law makes it unlawful for a food delivery platform to charge a customer any purchase price for food or beverage that is higher than the price posted on the food delivery platform's internet website by the food facility at the time of the order or to retain any portion of amounts designated as a tip or gratuity. This bill would also make it unlawful for a food delivery platform to maintain a payment model that uses any amount designated as tips or gratuity to offset the base pay to the person delivering the food or beverage. Existing law requires a food delivery platform to prominently disclose to the customer and to the food facility an accurate, clearly identified, and itemized cost breakdown of each transaction, including, among other information, the purchase price of the food and beverage, each fee charged to the customer, and any tip or gratuity. This bill would also require a food delivery platform to prominently disclose to the person delivering the food or beverage an accurate, clearly identified, and itemized breakdown of the pay received for a delivery, including the base pay, gratuity or tips, and any promotional bonuses. Existing law requires a food delivery platform to clearly and regularly disclose to the food facility and the customer the status of the order, including the method of delivery. This bill would require a food delivery platform to include a clear and conspicuous customer service feature that allows a customer to contact a natural person. The bill would authorize the food delivery platform to use an automated system to address customer service concerns. However, if the automated system is unable to address the customer's concerns, the bill would require the food delivery platform to ensure that the customer is able to promptly connect with the natural person in order to address the concern. The bill would further require a food delivery platform to provide a full refund to the customer if an order is not delivered or the wrong order is delivered, unless the food delivery platform determines that the customer was responsible for the nondelivery or finds evidence indicating the refund request may be fraudulent. The bill would require the food delivery platform to refund the amount of the original paid gratuity to the customer but to not take or deduct the original gratuity amount from the delivery driver. The bill would require the food delivery platform, if it is not feasible to refund the paid gratuity in the original method of payment, to provide an alternate refund method for the gratuity. The bill would also require the food delivery platform, if a customer receives an order that is only partially fulfilled, to charge the customer only for the portion of the order the customer received and to adjust any taxes, fees, or gratuities directly associated with the undelivered items. The bill would additionally require the food delivery platform to provide a mechanism that allows the customer to adjust a gratuity that was included in the order prior to its delivery and request that the amount of the refund be returned to the original method of payment.