Coronavirus Chicago: Mayor Lightfoot, City officials create new rules for third-party food delivery apps

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CHICAGO (WLS) — Mayor Lightfoot and BACP announced Tuesday the first-in-the-nation rules for third-party food delivery companies to increase transparency and fair competition.

The vast majority of third-party delivery companies charge a commission fee to the restaurant from which food is being delivered.

Since this fee is not currently transparent when an individual is purchasing food, customers may believe that the restaurant is receiving the full menu price of the food, city officials said.

Starting Friday, May 22, all third-party delivery companies will be required to disclose to the customer an itemized cost breakdown of each transaction, including the menu price of the food, any sales or other tax, delivery charge and tip, and any commission or service fee paid by the restaurant to the third-party delivery company.

These new rules will be in place permanently, city officials said. They will apply to all websites, mobile applications or other internet services that offer or arrange the sale of food or beverages by a restaurant, bar or other food-serving establishments.

Last week,

a group of Chicago restaurant owners called out third-party apps

like GrubHub and UberEats over high service charges and asked customers to order directly from the restaurants.

As more restaurants are relying on third-party delivery apps during the COVID-19 outbreak, city officials said these rules will provide customers with the details they need to make fully-informed purchasing decisions.

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26-Delivered

via ABC7 Chicago

May 12, 2020 at 10:21AM

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