A bipartisan U.S. House proposal would make a written agreement with a restaurant a condition for delivery platforms to handle prepared-food orders, giving restaurants a formal say over which services can list and sell their meals.
U.S. Rep. Susie Lee of Nevada introduced H.R. 10885, the PROTECT Small Restaurants Act, on Oct. 22 with five co-sponsors. The House referred it to the Energy and Commerce Committee. The measure has not been enacted.
The bill would bar a delivery provider from facilitating orders for restaurant-prepared food or beverages without an agreement. If a restaurant without one asks to be removed, the provider would have to take down its listing and stop handling its orders within 10 days. The text does not specify whether those are calendar or business days.
The bill defines a covered provider as an online service that lets customers order from a restaurant and arranges delivery; same-day pickup may also be covered. Grocery and convenience stores are excluded from its definition of restaurants. The proposal would shift responsibility to providers to secure agreements and process removal requests.
The FTC could issue rules to implement the measure and would enforce it. Violations would be treated as violations of the agency’s rules against unfair or deceptive acts. A separate provision would give a 2024 FTC rule on impersonation of government and businesses the force and effect of law.
New York City requires agreements for delivery services to list or sell restaurant products or arrange their delivery. California law bars platforms from arranging delivery without authorization to take orders and deliver a restaurant’s food. Lee’s office said the bill is endorsed by the National Restaurant Association and Nevada Restaurant Association, and quoted the Independent Restaurant Coalition’s executive director in support.
If enacted, the bill’s requirements would apply to orders placed beginning 180 days after enactment.
