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A04651 Summary:

COSPNSRMcDonald, Zebrowski, Otis, Woerner
Add §391-v, Gen Bus L
Requires third-party delivery services to have a valid agreement with a merchant before they advertise, promote, or sell the merchant's products on their platform, and prohibits the inclusion of an indemnity clause in such agreements.
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A04651 Actions:

02/04/2021referred to consumer affairs and protection
03/09/2021reported referred to codes
04/22/2021advanced to third reading cal.226
04/26/2021substituted by s1630a
 01/15/2021PRINT NUMBER 1630A
 01/19/2021PASSED SENATE
 01/19/2021referred to consumer affairs and protection
 04/26/2021substituted for a4651
 04/26/2021ordered to third reading cal.226
 05/11/2021passed assembly
 05/11/2021returned to senate
 12/21/2021SIGNED CHAP.693
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A04651 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                    February 4, 2021
        Introduced by M. of A. ABBATE, McDONALD -- read once and referred to the
          Committee on Consumer Affairs and Protection
        AN  ACT  to  amend  the general business law, in relation to third-party
          delivery services
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  391-v to read as follows:
     3    §  391-v. Third-party food delivery agreements. 1. For the purposes of
     4  this section, the following terms shall have the following meanings:
     5    (a) "Agreement" means a written contractual agreement between  a  food
     6  service  establishment and a third-party food delivery service authoriz-
     7  ing the inclusion of the food service establishment's  products  on  the
     8  third-party food delivery platform.
     9    (b)  "Food service establishment" means a place where food is provided
    10  for individual portion service directly to  the  consumer  whether  such
    11  food  is provided free of charge or sold, and whether consumption occurs
    12  on or off the premises or is provided from a pushcart, stand or vehicle.
    13    (c) "Third-party food delivery  service"  means  any  website,  mobile
    14  application  or  other  internet service that offers or arranges for the
    15  sale or delivery of food and beverages prepared  by,  and  the  same-day
    16  delivery  or  same-day  pickup of food and beverage from, a food service
    17  establishment located in the state.
    18    (d) "Third-party food delivery platform" means the  online  or  mobile
    19  platform  of  the  third-party food delivery service on which a consumer
    20  can view products available for sale and  place  an  order  for  a  food
    21  service establishment's products.
    22    2.  (a) A third-party food delivery service shall not list, advertise,
    23  promote, or sell a food service establishment's products, or arrange for
    24  the delivery of an order of such products, on a third-party food  deliv-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 4651                             2
     1  ery  platform without a valid agreement with the food service establish-
     2  ment authorizing the inclusion of their products on such platform.
     3    (b)  An  agreement  executed in accordance with this section shall not
     4  include a provision, clause, or covenant that requires  a  food  service
     5  establishment  to  indemnify  a  third-party  food delivery service, any
     6  independent contractor acting on behalf of the third-party food delivery
     7  service, or any  registered  agent  of  the  third-party  food  delivery
     8  service,  for  any damages or harm by an act or omission occurring after
     9  the food service establishment's product leaves the place of business of
    10  the food service establishment. To the extent an agreement contains such
    11  a provision, such provision shall be deemed void and unenforceable.
    12    (c) A food service establishment included on a third-party food deliv-
    13  ery platform in violation of this section shall have the right to  bring
    14  an action in a court of competent jurisdiction for damages, penalties as
    15  set  forth  in  this  section, and injunctive relief. Such court, in its
    16  discretion, may also award reasonable court costs and attorneys' fees.
    17    (d) Any person that violates any provision of this  section  shall  be
    18  subject  to a civil penalty of up to one thousand dollars per violation.
    19  Each day a food service establishment is included on a third-party  food
    20  delivery  platform  and  each  food  service establishment included on a
    21  third-party food  delivery  platform  shall  be  considered  a  separate
    22  violation.
    23    §  2.  This  act  shall take effect on the sixtieth day after it shall
    24  have become a law.
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