H.R. 10885: Providing Real Oversight of Third-parties Executing Certain Transactions for Small Restaurants Act

This bill would require online food delivery services to have a written partnership agreement with a restaurant before they can list that restaurant or take orders for it. In practical terms, a delivery app or website could not offer food from a restaurant unless the restaurant has agreed in writing to work with that platform.

If a restaurant is being shown on a delivery platform without such an agreement, the restaurant could ask the platform to remove its listing. After receiving that request, the platform would have to remove the restaurant from its online service and stop facilitating orders for it within 10 days.

The bill defines a food delivery service provider broadly as an online service that lets consumers order food or drinks from a restaurant and helps arrange delivery or same-day pickup. It defines a restaurant as a place that prepares and serves food for immediate consumption, and it excludes grocery stores and convenience stores.

The Federal Trade Commission (FTC) would be responsible for enforcing the rules. Violations would be treated as unfair or deceptive acts or practices under the FTC Act, which means the FTC could use its normal enforcement tools and penalties. The FTC would also be allowed to issue regulations to carry out the law.

The new requirements would apply to orders placed 180 days after the bill becomes law.

The bill also says that an existing FTC rule on impersonation of government and businesses would have the force of law.

Relevant Companies

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