LA City Council Extends Delivery Fee Cap

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On August 26, 2020, the Los Angeles City Council unanimously voted to extend the 15% cap on delivery fees charged to restaurants.  The fee cap was originally adopted on June 10, 2020, and was set to expire on August 31, 2020.

The approved amendment to the Limit on Third-Party Food Delivery Service Fees Ordinance No. 186665 states that “the current sunset date of Aug 31, 2020 be amended to 90 days after restaurants are able to resume indoor dining capacity at 100 percent and that the ordinance would be in effect at any point if the restaurants are required to reduce indoor capacity due to the COVID-19 virus.”

All public comments submitted to the City Council expressed support for extending the ordinance in order to protect the interests of small businesses.

The City Council also instructed the City Attorney to investigate a monetary penalty structure and a reporting mechanism for restaurants that have been overcharged by third party delivery services.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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