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HF 299

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/04/2021 03:51pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to consumer protection; limiting third-party food delivery fees; providing
penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin THIRD-PARTY FOOD DELIVERY FEES; LIMITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given.
new text end

new text begin (b) "Delivery fee" means a fee charged by a third-party food delivery service to a food
and beverage establishment for a service that delivers food or beverages from the
establishment to customers. The term does not include (1) any other fee that may be charged
by a third-party food delivery service to a food and beverage establishment, including but
not limited to fees for marketing, listing, or advertising the food and beverage establishment
on the third-party food delivery service platform, or (2) fees related to processing an online
order.
new text end

new text begin (c) "Food and beverage establishment" or "establishment" means a retail business that
sells prepared food or beverages to the public.
new text end

new text begin (d) "Online order" means an order, including a telephone order, placed by a customer
through or with the assistance of a platform provided by a third-party food delivery service.
new text end

new text begin (e) "Purchase price" means the total price of the items contained in an online order that
are listed on the menu of the food and beverage establishment where the order is placed.
Purchase price does not include taxes, gratuities, or other fees that may make up the total
cost of a customer's online order.
new text end

new text begin (f) "Third-party food delivery service" means a platform offered through an
online-enabled application, software, website, or other Internet service that offers or arranges
for the sale of food and beverages prepared by, delivered by, or picked up from a food and
beverage establishment.
new text end

new text begin Subd. 2. new text end

new text begin Limitation on food delivery fees. new text end

new text begin (a) A third-party food delivery service is
prohibited from:
new text end

new text begin (1) charging a food and beverage establishment a delivery fee that totals more than ten
percent of an online order's purchase price;
new text end

new text begin (2) charging a food and beverage establishment any fee, other than the delivery fee
described in clause (1), to use the third-party delivery service that totals more than five
percent of an online order's purchase price;
new text end

new text begin (3) charging a customer a purchase price that is higher than the price set by the food and
beverage establishment or, if no price is set by the food and beverage establishment, the
price listed on the establishment's menu; or
new text end

new text begin (4) reducing the compensation rates paid to third-party food delivery service drivers as
a result of the limitations on fees instituted by this section.
new text end

new text begin (b) A food and beverage establishment may choose, but a third-party food delivery
service is prohibited from requiring, an exemption for marketing or advertising the food
and beverage establishment on the third-party food delivery service platform from the
limitations in paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Enforcement by attorney general. new text end

new text begin (a) The attorney general must enforce this
section under Minnesota Statutes, section 8.31.
new text end

new text begin (b) In addition to the remedies otherwise provided by law, a person injured by a violation
of subdivision 2 may bring a civil action and recover damages, together with costs and
disbursements, including costs of investigation and reasonable attorney fees, and receive
other equitable relief as determined by the court.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires 60 days after the peacetime emergency declared by the governor in an executive
order that relates to the infectious disease known as COVID-19 is terminated or rescinded.
new text end