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

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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.

Business / Coronavirus / Food / Health / News / State & Regional News
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Shelby Filangi

Shelby is a digital content producer for KRDO.com. You can learn more about Shelby here.

Comments

2 Comments

  1. Good I’d support more small business here if grubhub didn’t charge such a large delivery fee

  2. DoorDash has such a poor track record they should be paying people to use them, rather than charging fees.

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