Gonzalez Bill to Require Transparency for Food Delivery App Orders Passes Senate Committee

For immediate release:

SACRAMENTO – (Wednesday, July 14, 2021) – Food delivery companies like Uber Eats and DoorDash often conceal the fees they charge both restaurants and customers on orders placed on their apps. Today, the Senate Business, Professions and Economic Development Committee passed Assemblywoman Lorena Gonzalez’s Assembly Bill 268 to notify consumers of the fees paid by a restaurant to the food delivery app company.
“Small mom and pop restaurants are being charged excessive fees by delivery apps – to the point where some have said they lost money on orders,” Assemblywoman Gonzalez (D-San Diego) said. “At the same time, you have delivery drivers who believe their tips are being stolen from these companies. We have to ensure that people can actually see what they are being charged and stop these companies from stealing workers’ hard-earned tips.”
Customers placing orders on food delivery apps have reported they were unaware prices were higher than what they would pay in person. AB 286 would prohibit food delivery companies from charging higher prices for food than what the restaurant is charging its patrons. 
DoorDash was forced in November 2020 to pay $2.5 million to settle a lawsuit that alleged the company was stealing tips from its delivery drivers. AB 286 would also require that 100% of a customer’s tip goes to the delivery driver or restaurant if the order is picked up in-person. 
For questions or to schedule an interview with Assemblywoman Gonzalez, contact Mike Blount: Mike.Blount@asm.ca.gov