Thursday, December 17, 2020
Reports of restaurants adding a “COVID surcharge” have become widespread during the pandemic. In recent months, cities and states across the nation have implemented a number of measures designed to help struggling restaurants adapt to the new normal. These include allowing restaurants to implement a “surcharge,” as well as capping fees that third-party delivery services can charge restaurants. However, while “surcharges” may be more benign than direct price increases, a recent California price gouging lawsuit demonstrates that restaurants still need to be vigilant in their compliance with state price gouging laws.
In an effort to help struggling restaurants, Cleveland has become the latest city to implement a cap on the amount of fees that third-party food delivery services may charge restaurants. The limitation, passed on December 15, caps third-party delivery fees at 15% of the order. Similarly, Chicago implemented a ban in Nove
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Price gouging enforcement and litigation is front and center for company counsel and business managers nationwide. Our weekly round up highlights some of the most relevant news and information for our clients and friends.
On December 7, 2020, Washington Attorney General Bob Ferguson issued guidance for third-party food delivery services regarding increased prices. The guidance follows Washington Governor Jay Inselee’s November 19 proclamation enacting a cap on fees third-party delivery services can charge restaurants. The proclamation capped delivery fees at 15%, and total fees at 18% of the purchase price. Attorney General Ferguson’s guidance is aimed at helping companies “avoid violations of Washington’s Consumer Protection Act.” Attorney General Ferguson further provided examples of conduct likely to violate the Consumer Protection Act, including “[c]harging any fee in excess of fee limits set by state or l
Monday, December 14, 2020
Price gouging enforcement and litigation is front and center for company counsel and business managers nationwide. Our weekly round up highlights some of the most relevant news and information for our clients and friends.
On December 7, 2020, Washington Attorney General Bob Ferguson issued guidance for third-party food delivery services regarding increased prices. The guidance follows Washington Governor Jay Inselee’s November 19 proclamation enacting a cap on fees third-party delivery services can charge restaurants. The proclamation capped delivery fees at 15%, and total fees at 18% of the purchase price. Attorney General Ferguson’s guidance is aimed at helping companies “avoid violations of Washington’s Consumer Protection Act.” Attorney General Ferguson further provided examples of conduct likely to violate the Consumer Protection Act, including “[c]harging any fee in excess of fee limits set by state or local governments.”�