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Record #: O2021-1644   
Type: Ordinance Status: Failed to Pass
Intro date: 4/21/2021 Current Controlling Legislative Body: Committee on License and Consumer Protection
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
Topic: MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 8 Food Establishments
Attachments: 1. O2021-1644.pdf
Related files: R2023-766
Committee on License and Consumer Protection 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 charged commission fees that exceeded 30 percent before the City limited those fees during the pandemic; and

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


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: "City" means the City of Chicago.

"Delivery fee" means a fee charged by a Third-Party Food Delivery Service for providing a Food Dispensing Establishment with a service that delivers food and beverages from such establishment to customers. The term does not include any other fee or cost that may be charged by a Third-Party Food Delivery Service to a Food Dispensing Establishment, such as fees for listing or advertising the Food Dispensing Establishment on the Third-Party Food Delivery Service platform or fees related to processing the Online Order.

"Food Dispensing Establishment" has the same meaning as ascribed to this term in Section 4-8-010 of the Municipal Code of Chicago.

"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 ord...

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