Mayor Lori E. Lightfoot and Department of Business Affairs and Consumer Protection (BACP) Commissioner Rosa Escareno announced new rules for third-party food delivery companies to increase transparency and fair competition. Effective Friday, May 22nd, 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. As more restaurants are relying on third-party delivery apps during the Coronavirus 2019 (COVID-19) outbreak, these first-in-the-nation rules will provide customers with the details they need to make fully-informed purchasing decisions. These new rules will be in place permanently and 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. Violating the rules can result in a daily fine of $500 to $10,000. These rules are the latest effort by BACP to increase transparency and clarity for consumers while maintaining the fair competition and innovation.
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