Bill introduced to restrict fees charged by third-party food delivery service

DENVER, Colo. (KRDO) -- During a special session of the Colorado General Assembly on Monday, Nov. 30, lawmakers introduced HB20B-1005 that would allow local authorities to impose fee restrictions from a third-party food delivery service.

The bill, sponsored by Representative Shannon Bird, is designed to help retail food establishments.

The bill summary states that due to ongoing COVID-19 restrictions, the need for third-party food delivery services is increasing. However, the bill claims third-party delivery services sometimes charge high fees that put a financial strain on the business and deter customers from purchasing food.

If approved, the bill authorizes:

• Limits the fee a third-party delivery service can charge a retail food establishment
• Restrict the ability a third-party delivery service has in reducing compensation rates or tips to delivery drivers or a business to offset revenue reductions resulting from a fee limit
• Require any fee or commission charged to a business be disclosed by the third-party food delivery service to the customer
• Restrict the amount of information about a business a third-party delivery service can disclose without consent
• Impose civil penalties for a violation of any ordinance or resolution enacted

The bill also grants immunity to counties and municipalities from liability for all claims for injury resulting from any economic damage that a party may occur due to the ordinance or resolution.

Right now HB20B-1005 is under consideration.