This week, new laws went into effect in New York City that require third party food delivery apps to be licensed by the City's Department of Consumer and Worker Protection. Under the new laws, the apps will also be required to comply with a host of other requirements, which go into effect over the next year.
In announcing the new laws, New York City May Eric Adams said, "With this legislation, we are taking a transformative step in protecting these essential workers, and also supporting our city's restaurants, to ensure a fair and equitable recovery for all New Yorkers."
In addition to requiring the apps to be licensed, the new laws impose other requirements, including:
- Caps on fees that can be charged to restaurants;
- Disclosures that must be made to consumers about how much of the gratuity gets paid to the delivery worker;
- Listing of phone numbers for restaurants, when phone numbers are given;
- Written agreements with the restaurants; and
- Prohibition on unauthorized listings on websites and apps.
Additional requirements go into effect in April 2022 and in January 2023.
More information about applying for a DCWP license is available here. The licensing requirement does not apply to restaurants that deliver their own food.
DCWP Commissioner Peter A. Hatch said, “By licensing food delivery apps, we can now bring much needed oversight and regulation to this expanding industry, which will greatly benefit not only these essential workers, but the restaurants and consumers who use the apps as well."