Bills in City Council could protect restaurants
from ‘exorbitant’ fees by delivery apps
BY MARK HALLUM
City Council passed three bills on
Thursday that will extend the cap
on delivery fees levied from thirdparty
apps that likely kill business for local
eateries in New York City as indoor dining
still is not allowed by the state.
One bill sponsored by Councilman Francisco
Moya, Intro. 2054, will mean apps
for ordering in cannot charge restaurants
a “pass-through,” or processing fee, that
charges more than the cost of fulfi lling the
order until 90 days after indoor dining is
deemed safe for the public in the ongoing
COVID-19 pandemic. A package of other
bills could compliment this by providing
other protections from apps as well as commercial
rent assistance.
“This bill will provide our neighborhood
mom and pop restaurants a temporary
reprieve from the exorbitant fees
charged by billion-dollar tech companies
for as long as the pandemic prevents them
from operating at full indoor capacity,”
Moya said. “It’s a bit of breathing room
they desperately need. We’re all thankful
to see the city’s positivity rate slow down
but restaurants are well aware that we
haven’t outrun COVID-19 yet. They
know the industry will be reeling from the
pandemic’s effects for months to come.
As legislators, we can and must make
sure that they’re not grappling with exorbitant
fees from these third-party food
apps while they’re struggling to keep their
shops on life support.”
A second bill by Councilman Mark
Gjonaj, Intro. 2043, will prohibit thirdparty
apps from charging restaurants for
phone calls that do not end in a transaction,
both of which would take effect immediately
after passage.
Both bills passed 44-3, with only Brooklyn
Councilman Kalman Yeger and Staten
Island Councilmen Joe Borelli and Steven
Matteo opposing it.
Councilman Mark Levine’s bill (Intro.
1470-B) would codify the Commercial
Lease Assistance Program, operated by
the Department of Small Business Services
(SBS), that offers out-of-court legal
assistances for eateries and other brick
and mortars to negotiate commercial lease
renewals. According to Levine, this would
essentially give business the right to an
attorney, at least before proprietors go to
court.
“Our city’s small businesses are facing
extinction. We need to do everything
possible to help them in their fi ght for
survival,” Levine said. “Expanding access
to counsel for our residential tenants has
had a dramatic impact. We need to build on
this success by expanding legal assistance
for commercial tenants as well.”
The CLA program went unfunded in the
Fiscal Year 2021 budget which was passed
in July, but funds have since been restored,
according to City Council.
Levine’s bill passed the City Council
unanimously.
All three bills were sent to Mayor Bill de
Blasio for his signature.
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