Re:Portland approves 10% cap on fees that food delivery apps...
by ceejayoz on Thursday July 09, 2020 @10:24AM
(#23780576)
That's what this does.
They can still charge whatever they want for their fee. They just can't hide their fee in the list price of your sushi.
Re:Portland approves 10% cap on fees that food delivery apps...
by admax88q on Thursday July 09, 2020 @10:31AM
(#23780666)
What? Are we reading the same article? As far as I can tell this new rule caps fees at 10%, it doesn't say anything about charging whatever they want, while being more transparent or disclosing the fees more clearly.
Re:Portland approves 10% cap on fees that food delivery apps...
by ceejayoz on Thursday July 09, 2020 @10:35AM
(#23780712)
The headline says "Portland approves 10% cap on fees that food delivery apps can charge RESTAURANTS". There's no cap on what they can charge customers.
Legal: "Your pizza is $10. Our fee is $3, delivery is $5. Total bill $18." Restaurant gets $10.
Not legal: "Your pizza is $10 (but we quietly take $3 of that). Our fee is $3 (but we hid an extra $3 in the pizza!). Delivery is $5. Total bill $18." Restaurant gets $7.
Legal: "Your pizza is $7. Our fee is $6, delivery is $5. Total bill $18." Restaurant gets $7.
Legal: "Your pizza is $10. Our fee is $6, delivery is $5. Total bill $21." Restaurant gets $10.
Legal (but not great for business): "Your pizza is $10. Our fee is $600 because 'fuck you, we have VCs to pay', delivery is $5. Total bill $615." Restaurant gets $10.
It would be better and fairer to legislate that GrubHub and others must be clear about where their pricing comes from rather than legislating what their prices should be.