{"id":8474,"date":"2021-05-24T08:37:31","date_gmt":"2021-05-24T12:37:31","guid":{"rendered":"https:\/\/www.wasserstrom.com\/blog\/?p=8474"},"modified":"2021-06-14T09:12:57","modified_gmt":"2021-06-14T13:12:57","slug":"legislation-trends-states-vs-delivery-apps","status":"publish","type":"post","link":"https:\/\/www.wasserstrom.com\/blog\/2021\/05\/24\/legislation-trends-states-vs-delivery-apps\/","title":{"rendered":"Legislation Trends: States vs. Delivery Apps"},"content":{"rendered":"\n<p>States such as <a rel=\"noreferrer noopener\" href=\"https:\/\/leg.colorado.gov\/bills\/sb21-035\" target=\"_blank\">Colorado<\/a>, <a rel=\"noreferrer noopener\" href=\"https:\/\/legiscan.com\/NH\/bill\/HB593\/2021\" target=\"_blank\">New Hampshire<\/a>, and <a href=\"https:\/\/www.txrestaurant.org\/news\/texas-restaurant-association-third-party-delivery-companies-applaud-texas-legislature-passing\" target=\"_blank\" rel=\"noreferrer noopener\">Texas<\/a> are taking action against third-party food delivery services. This new legislative trend seeks to place restrictions on third-party food delivery platforms, specifically requiring the company to get permission from a restaurant prior to listing them on the app and acting as their delivery service.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Opposing Industry Perspectives<\/h2>\n\n\n\n<p>It is easy to understand why food delivery apps would prefer to offer as many options as possible to their customers; a larger network of restaurants means growth, increased revenue, and <a href=\"https:\/\/www.eater.com\/2019\/10\/30\/20940107\/grubhub-to-add-restaurants-without-permission-like-postmates\" target=\"_blank\" rel=\"noreferrer noopener\">a leg up on the <\/a><a rel=\"noreferrer noopener\" href=\"https:\/\/www.eater.com\/2019\/10\/30\/20940107\/grubhub-to-add-restaurants-without-permission-like-postmates\" target=\"_blank\">competition<\/a>.<\/p>\n\n\n\n<p>Restauranteurs and their staff, however, <a href=\"https:\/\/www.cpr.org\/2021\/05\/19\/restaurants-are-fed-up-with-grubhub-doordash-and-others-now-theyve-got-legislators-on-their-side\/\" target=\"_blank\" rel=\"noreferrer noopener\">share a different opinion<\/a>. Common problems that arise from third-party food delivery apps listing restaurants without their knowledge or consent include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Orders for delivery may be placed at the restaurant, resulting in a longer wait time for customers.<\/li><li>The menu listed online may have outdated prices or list discontinued items, resulting in customer disappointment.<\/li><li>The food may not be ideal for takeout or travel, thereby inaccurately representing restaurant quality to customers.<\/li><li>The customer was delivered the wrong food.<\/li><li>The delivery was late.<\/li><li>Restaurants do not have customer contact info.<\/li><\/ul>\n\n\n\n<p>When these problems occur, it isn\u2019t the delivery app who takes the brunt of the heat. Customers complaints for problems created by the delivery app land squarely on restaurants.<\/p>\n\n\n\n<p>Given that in many cases restaurants aren\u2019t aware of being listed on third-party delivery websites, or denied partner authorization, restauranteurs feel this lack of control and consequent customer problems hurt their reputation. It is the restaurant that <a href=\"https:\/\/www.wasserstrom.com\/blog\/2018\/04\/19\/10-best-practices-for-responding-to-online-reviews\/\">receives poor online reviews<\/a> due to circumstances out of their control. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Current Legislative Progress<\/h2>\n\n\n\n<p>At present, <a href=\"https:\/\/www.sfchronicle.com\/food\/article\/It-s-now-illegal-for-delivery-apps-to-list-15850491.php\" target=\"_blank\" rel=\"noreferrer noopener\">California<\/a> is the only state where it is illegal for delivery apps to list restaurants without obtaining permission.<\/p>\n\n\n\n<p>States and municipalities that are currently trying to enact similar laws and regulations are united in a common goal to make it illegal for delivery platforms to offer delivery services without obtaining permission. This allows restaurant owners to protect their brand while providing the best service to their customers.<\/p>\n\n\n\n<p>States aim to return control to the restaurant and wish to enact penalty fees for third-party apps who violate this law, ranging from 100 to 1000 USD per incident.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>States such as Colorado, New Hampshire, and Texas are taking action against third-party food delivery services. This new legislative trend seeks to place restrictions on third-party food delivery platforms, specifically requiring the company to get permission from a restaurant prior to listing them on the app and acting as their delivery service. Opposing Industry Perspectives [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":8480,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[33],"tags":[108,751],"class_list":["post-8474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-delivery","tag-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Legislation Trends: States vs. Delivery Apps | The Official Wasserstrom Blog<\/title>\n<meta name=\"description\" content=\"States such as Colorado, New Hampshire, and Texas are taking action against third party food delivery services. 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