Office of the City Clerk - Record #: O2020-2117

• Record #: O2020-2117
• Type: Ordinance
• Status: Failed to Pass
• Intro date: 4/24/2020
• Current Controlling Legislative Body: Committee on Committees and Rules
• Final action: 5/24/2023
• Title: Amendment of Municipal Code Chapter 4-8 by adding new Section 4-8-300 to regulate third-party food delivery service fees
• Sponsors: Waguespack, Scott, O'Shea, Matthew J.
• Topic: MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 8 Food Establishments
• Related files: R2023-766

Date	Journal Page Number	Action By	Action	Result
5/24/2023		City Council	Failed to Pass
11/4/2020		Committee on Committees and Rules	Add Co-Sponsor(s)
4/24/2020	16489	City Council	Referred

Committee on Finance

ORDINANCE

WHEREAS, Chicago has a diverse and exciting restaurant community that extends into every neighborhood and contributes to making this a vibrant world-class city; and

WHEREAS, Chicagoans, even before the COVID-19 pandemic, were using third-party online food delivery applications often to access our City's amazing restaurants; and

WHEREAS, according to news sources, food delivery application companies often charge commission fees that can exceed 30 percent, cutting into the already thin profit margins of restaurants; and

WHEREAS, it is the intent of the City of Chicago to protect its vibrant restaurant community from excessive price gouging at all times; now, therefore

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO

Section 1 - The above recitals are expressly incorporated in this ordinance.

Section 2 - Chapter 4-8 of the Municipal Code of Chicago is amended inserting the new Section 4-8-300 as follows:
4-8-300 Third-Party Food Delivery Service Fees (a) Definitions
The following definitions shall apply to this section:
"Covered establishment" shall mean any food dispensing establishment, as defined by Sec. 4-8-010, that offers, in a single transaction over the internet, whether directly or through a third-party food delivery service, the sale and same-day delivery of food to customers.

"Online order" shall mean any order placed by a customer through a platform provided by a third-party food delivery service for delivery or pickup within the City.

"Purchase price" shall mean the menu price of an online order, excluding taxes, gratuity, and any other fees that make up the total cost to the customer.



|10
10|
"Service fee" shall mean any fee charged to the customer that is above and beyond the purchase price, tax, or gratuity.

"Third-party food delivery service" shall mean any website, mobile application, or other internet service that offers or arranges for the sale of food or beverages prepared by, and the sam...