103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1266

 

Introduced 1/31/2023, by Rep. Maurice A. West, II

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 338/5
815 ILCS 338/25 new

    Amends the Fair Food and Retail Delivery Act. Provides that beginning January 1, 2024, no third-party delivery service may charge a merchant a fee, commission, or charge per order through a digital network that totals more than 15% of the purchase price of the order, unless: (1) the third-party delivery service offers all merchants the option to obtain core delivery services for a fee, commission, or charge not to exceed 15% of the purchase price of the order without requiring the purchase of additional services; and (2) no later than November 1, 2023, the third-party delivery service notifies all merchants that have an existing contract with the third-party delivery service of this option. Defines "core delivery service". Effective immediately.


LRB103 25000 SPS 51334 b

 

 

A BILL FOR

 

HB1266LRB103 25000 SPS 51334 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Fair Food and Retail Delivery Act is
5amended by changing Section 5 and by adding Section 25 as
6follows:
 
7    (815 ILCS 338/5)
8    Sec. 5. Definitions. As used in this Act:
9    "Agreement" means a written agreement between a merchant
10and a third-party delivery service.
11    "Core delivery services" means services provided by a
12third-party delivery service that: (i) lists a merchant and
13makes the merchant discoverable on all modalities or platforms
14offered by the third-party delivery service, including, but
15not limited to, a website, a mobile application, or other
16Internet service where a third-party delivery service lists
17merchants; and (ii) facilitates or performs the delivery of
18food or beverages from merchants to customers through
19employees or independent contractors of the third-party
20delivery service or merchant. "Core delivery service" does not
21include any other service that may be provided by a
22third-party delivery service to a merchant, including, but not
23limited to, advertising services, search engine optimization,

 

 

HB1266- 2 -LRB103 25000 SPS 51334 b

1business consulting, or credit card processing.
2    "Customer" means the person, business, or other entity
3that places an order for a merchant's products through a
4digital network.
5    "Digital network" means a third-party delivery service's
6Internet site or online-enabled application, software, or
7system that allows a customer to view, search, and purchase
8products for delivery by a third-party delivery service to a
9customer.
10    "Likeness" means identifiable symbols attributed and
11easily identified as belonging to a specific merchant or
12retailer.
13    "Merchant" means a restaurant, bar, or other retail
14entity.
15    "Third-party delivery service" means a company,
16organization, person, or entity outside of the operation of
17the merchant's business, not wholly owned by the merchant,
18that provides delivery services to customers through a digital
19network.
20    "Third-party delivery service driver" means an individual
21that provides delivery services on behalf of a third-party
22delivery service to customers.
23(Source: P.A. 102-1056, eff. 1-1-23.)
 
24    (815 ILCS 338/25 new)
25    Sec. 25. Fee cap for core delivery services. Beginning

 

 

HB1266- 3 -LRB103 25000 SPS 51334 b

1January 1, 2024, no third-party delivery service may charge a
2merchant a fee, commission, or charge per order through a
3digital network that totals more than 15% of the purchase
4price of the order, unless:
5        (1) the third-party delivery service offers all
6    merchants the option to obtain core delivery services for
7    a fee, commission, or charge not to exceed 15% of the
8    purchase price of the order without requiring the purchase
9    of additional services; and
10        (2) no later than November 1, 2023, the third-party
11    delivery service notifies all merchants that have an
12    existing contract with the third-party delivery service of
13    the option described in paragraph (1).
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.