HB1266 103RD GENERAL ASSEMBLY

LRB103 25000 SPS 51334 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1266

Introduced 1/31/2023, by Rep. Maurice A. West, II

SYNOPSIS AS INTRODUCED:

815 ILCS 338/5
815 ILCS 338/25 new

Amends the Fair Food and Retail Delivery Act. Provides that beginning January 1, 2024, no third-party delivery service may charge a merchant a fee, commission, or charge per order through a digital network that totals more than 15% of the purchase price of the order, unless: (1) the third-party delivery service offers all merchants the option to obtain core delivery services for a fee, commission, or charge not to exceed 15% of the purchase price of the order without requiring the purchase of additional services; and (2) no later than November 1, 2023, the third-party delivery service notifies all merchants that have an existing contract with the third-party delivery service of this option. Defines "core delivery service". Effective immediately.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Fair Food and Retail Delivery Act is amended by changing Section 5 and by adding Section 25 as follows:

(815 ILCS 338/5)

Sec. 5. Definitions. As used in this Act:

"Agreement" means a written agreement between a merchant and a third-party delivery service.

"Core delivery services" means services provided by a third-party delivery service that: (i) lists a merchant and makes the merchant discoverable on all modalities or platforms offered by the third-party delivery service, including, but not limited to, a website, a mobile application, or other Internet service where a third-party delivery service lists merchants; and (ii) facilitates or performs the delivery of food or beverages from merchants to customers through employees or independent contractors of the third-party delivery service or merchant. "Core delivery service" does not include any other service that may be provided by a third-party delivery service to a merchant, including, but not limited to, advertising services, search engine optimization, business consulting, or credit card processing.

"Customer" means the person, business, or other entity that places an order for a merchant's products through a digital network.

"Digital network" means a third-party delivery service's Internet site or online-enabled application, software, or system that allows a customer to view, search, and purchase products for delivery by a third-party delivery service to a customer.

"Likeness" means identifiable symbols attributed and easily identified as belonging to a specific merchant or retailer.

"Merchant" means a restaurant, bar, or other retail entity.

"Third-party delivery service" means a company, organization, person, or entity outside of the operation of the merchant's business, not wholly owned by the merchant, that provides delivery services to customers through a digital network.

"Third-party delivery service driver" means an individual that provides delivery services on behalf of a third-party delivery service to customers.

(Source: P.A. 102-1056, eff. 1-1-23.)

(815 ILCS 338/25 new)

Sec. 25. Fee cap for core delivery services. Beginning January 1, 2024, no third-party delivery service may charge a merchant a fee, commission, or charge per order through a digital network that totals more than 15% of the purchase price of the order, unless:

(1) the third-party delivery service offers all merchants the option to obtain core delivery services for a fee, commission, or charge not to exceed 15% of the purchase price of the order without requiring the purchase of additional services; and

(2) no later than November 1, 2023, the third-party delivery service notifies all merchants that have an existing contract with the third-party delivery service of the option described in paragraph (1).

Section 99. Effective date. This Act takes effect upon becoming law.