Buena Park Municipal Code Ch. 5.68 Limits on Third-Party Food Delivery Fees

For purposes of this chapter the following definitions apply:

"City"

means the city of Buena Park.

"Core delivery service"

means a service that both: (1) lists a retail food establishment and makes the retail food establishment discoverable on all modalities or platforms offered by a third-party food delivery service, including, but not limited to, any website, mobile application, or other internet service where a third-party food delivery service lists retail food establishments; and (2) facilitates and/or performs the delivery (through employees or independent contractors of the third-party food delivery service and/or such establishments) of food and/or beverages from retail food establishments to customers. Core delivery service does not include any other service that may be provided by a third-party food delivery service to a retail food establishment, including, but not limited to, advertising services, search engine optimization, business consulting, or credit card processing.

"Delivery fee"

means a fee, commission, or charge per online order assessed by a third-party food delivery service for the purpose of providing a retail food establishment with a service that facilitates and/or performs the delivery of food and/or beverages from such establishment to customers, including listing a retail food establishment on a third-party food delivery service platform. A delivery fee does not include any other fees or costs that may be charged by a third-party food delivery service to a retail food establishment, such as fees for advertising or credit card processing.

"Non-delivery fee"

means a fee, commission, or charge per online order assessed by a third-party food delivery service to a retail food establishment for a service to the establishment other than facilitating or performing the delivery of food and/or beverages from such retail food establishment to customers and listing a retail food establishment on a third-party food delivery service platform. Non-delivery fees include, but are not limited to, fees for advertising the retail food establishment on the third-party food delivery service platform beyond a simple listing, business consulting service fees, and credit card transaction fees.

"Online order"

means an order placed by a customer through or with the assistance of a platform provided by a third-party food delivery service, including a telephone order, for delivery or pick-up within the city.

"Purchase price"

means the price, as listed on the menu for the retail food establishment, for the items contained in an online order. This definition does not include taxes or gratuities that may make up the total amount charged to the customer of an online order.

"Retail food establishment"

means a restaurant, delicatessen, bakery, coffee shop, or other eat-in or carry-out service of processed or prepared raw and ready-to-eat food or beverages.

"Third-party food delivery service"

means any website, mobile application, or other internet-based service, including, but not limited to, a "food delivery platform" as that term is defined by the Business and Professions Code Section 22598, that offers or arranges for the sale of food and beverages prepared by, and the delivery or pick-up of food and beverages from, no fewer than 20 retail food establishments located in the city that are each owned and operated by different persons or entities.

(Ord. 1714 § 2, 2023; Ord. 1766, 6/9/2026)

A. No third-party food delivery service shall charge a retail food establishment a delivery fee that exceeds 15% of the purchase price of any online order.

B. No third-party food delivery service may charge a retail food establishment a fee, commission, or charge that exceeds 15% of the total purchase price of online orders to that retail food establishment processed through the third-party food delivery service during the time period covered by the fee, commission, or charge.

C. Commencing August 1, 2026, the fee limits in subsections A and B of this section shall not apply to a third-party food delivery service that does both of the following:

1. Offers all retail food establishments the option to obtain core delivery service for a total fee, commission, or charge not to exceed 15% of the purchase price of the online order, without requiring the purchase of additional services; and

2. No later than December 1, 2026, notifies all retail food establishments that have an existing contract with the third-party delivery service of the option described in subsection C.1.

D. Contracts between a third-party food delivery service and a retail food establishment shall clearly define the fees, commissions, or charges associated with contracted services. For example, if a retail food establishment enters into a contract with a third-party food delivery service for core delivery service only, that contract shall clearly state a fee, commission, or charge of 15% purchase price for core delivery service.

E. No third-party food delivery service shall charge a retail food establishment any amount designated as a delivery fee for an online order that does not involve the delivery of food or beverages.

F. It shall be unlawful for a third-party food delivery service to charge a customer any purchase price for a food or beverage item that is higher than the price set by the retail food establishment on the third-party food delivery service platform or, if no price is set by the retail food establishment on the third-party food delivery service platform, the price listed on the retail food establishment's own menu.

G. It shall be unlawful for a third-party food delivery service to reduce the compensation rates paid to the third-party food delivery service drivers, or to garnish gratuities, as a result of any fee limitations instituted by this section.

(Ord. 1714 § 2, 2023; Ord. 1766, 6/9/2026)

A. Any person aggrieved or injured by a violation of this chapter may bring a civil action in the Superior Court of the state of California to recover all actual damages resulting from the violation. Reasonable attorneys' fees and costs shall be awarded by the court to a plaintiff that prevails in an action against a third-party food delivery service that is found to have violated this chapter. If the third-party food delivery service successfully defends such a civil action, the court may award reasonable attorneys' fees and costs to the third-party food delivery service upon a determination by the court that the plaintiff's action was frivolous.

B. Prior to bringing a civil action as is permitted by this section, the party claiming a violation of this chapter shall first satisfy the following requirements:

1. Written notice shall be provided to the third-party food delivery service of the provisions of this chapter alleged to have been violated and the facts to support the alleged violation; and

2. The third-party food delivery service is provided fifteen days from the date of the written notice to cure any alleged violation.

C. Notwithstanding any provision of this chapter or any other ordinance or provision of the Buena Park Municipal Code to the contrary, no criminal penalties shall apply for a violation of this chapter.

(Ord. 1714 § 2, 2023)