Denver City Council passed a bill on Monday that caps the fees for third-party food delivery companies, like DoorDash, to 15%.
DENVER — Denver has a new way restaurant owners can report third-party delivery apps that are charging too much in fees.
On Monday, city council unanimously passed an ordinance that, in part, caps the fees third-party food delivery companies, like DoorDash, can charge restaurants to 15%.
Before that, some restaurants were being charged up to 35% on every order, according to Denver City Councilwoman Kendra Black who helped propose the bill in September.
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City Council also said they found some restaurants were being listed on third-party platforms without their knowledge.
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The ordinance established six rules, which went into effect Friday:
- Retail Food Establishment Consent — Third-party food delivery platforms cannot list a retail food establishment’s information on their platform without written consent.
- Delivery Charges — Third-party food delivery platforms cannot assess commission fees of more than 15% of the total purchase price or menu price of an online order, excluding gratuities, taxes, and other fees.
- Delivery Wage Garnishment — Third-party food delivery platforms cannot garnish tips or lower the wages of a delivery person to compensate for any diminished revenues that result from the establishment of this Ordinance.
- Additional Fees — Third-party food delivery platforms cannot charge additional fees that retail food establishments have not voluntarily agreed to pay.
- Transparency of Transaction — Third-party food delivery platforms must provide to the end consumer a receipt that conveys in a clear, transparent, and plain language all fees for both the retail food establishment and the end-consumer charged by the third-party food delivery platform.
- Telephone Charges — Third-party providers cannot charge retail food establishment any fee for phone calls made by customers through their platforms unless those calls result in an order.
If a restaurant owner believes that a delivery app is in violation of any of those rules, they can file a complaint with the city using this online form.
Apps that are found to be in violation of the ordinance could face a fine of up to $999 per violation, each day a violation occurs, according to the city.
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