Portland Approves 10% Cap On Fees That Food Delivery Apps Can Charge Restuarants

An anonymous reader quotes a report from Oregon Live: The Portland City Council voted unanimously Wednesday to make it illegal for third-party food delivery services like DoorDash and Grubhub to collect more than 10% in commission fees from city restaurants amid the coronavirus pandemic. Portland joins other cities, including Seattle, Los Angeles and Philadelphia, that have instituted similar caps in recent months. Those cities have limits at 15%. New Jersey last week put a 10% service fee cap that applies to all restaurants in the state. Food delivery company fees can be as high as 30%.

The new rule also makes it illegal for DoorDash, Uber Eats and other companies to decrease payments to delivery workers in order to make up lost money from restaurant fees, the ordinance said. The city council approved an amendment to the order Wednesday to also include a 5% limit if the delivery service allows a restaurant to transport their own food or if a customer orders through the app and picks up their items at the business. The restrictions would end 90 days after Portland’s state of emergency order lifts. No date has been set to lift the order, which has been in place since March 12. Delivery app companies would be liable for up to $500 in civil penalties if the order is violated and the fine would accrue every day and for every restaurant overcharged. The restaurant would have to sue the company involved if they aren’t given refunds.

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