City Code Section
- A. A third-party food platform shall not list, advertise, promote, or sell a restaurant’s products on, or arrange for the delivery of an order of such products through, the website, mobile application or other modalities or platforms of such third-party food platform without a written agreement between such third-party food platform and such restaurant to include the restaurant’s products on such website, mobile application or other modality or platform.
- B. A third-party food delivery platform shall not impose, by written agreement or other means, any restrictions on the prices that a restaurant may charge for the restaurant’s products, whether sold through the third-party food platform, sold directly from the restaurant, or sold through any other means.
- C. A third-party food platform shall not charge any fee to a restaurant that the restaurant has not voluntarily agreed to pay.
- D. A third-party food platform shall not charge a restaurant an amount for delivery service that exceeds 15 percent of the purchase price per order.
- 1. The limitation of 15 percent of a purchase price per order for delivery service shall not apply to orders that have a purchase price of less than $10.
- 2. For orders that have a purchase price of less than $10, a maximum fee of $1.50 may be charged by a third-party food platform to a restaurant.
- E. A third-party food platform shall not charge a restaurant an amount for takeout service that exceeds 4 percent of the purchase price per order.
- F. In addition to the fees established in Subsections D. and E. above, a third-party food platform may pass onto a restaurant a transaction fee in the same amount charged by the payment processor to the third-party food platform. The third-party food platform must include in its contract with the restaurant the amount of the transaction fee and must provide to the restaurant, upon request, proof of such charge imposed by the payment processor.
- 1. If the amount charged by a payment processor to a third-party food platform changes, the third-party food platform must notify, in writing and in a timely manner, all restaurants under contract of the amount of the change.
- 2. No change in the amount charged by a payment processor to a third-party food platform shall authorize the third-party food platform to pass onto a restaurant a fee that is a different amount than the third-party food platform is charged by the payment processor.
- G. Beginning on March 1, 2023, the fee limits in Subsections D. and E. of this section shall not apply to a third-party food platform that does all of the following:
- 1. Offers, in a clear and transparent manner, all restaurants the option to obtain delivery service for a total fee, commission, or charge not to exceed 15 percent of the purchase price per order, without requiring the purchase of additional services;
- 2. Offers, in a clear and transparent manner, all restaurants the option to obtain takeout service for a total fee, commission, or charge not to exceed 4 percent of the purchase price per order, without requiring the purchase of additional services;
- 3. The third-party food platform charges fees in excess of those set forth in Subsections D., E., and F., only for services in addition to delivery service, takeout service, and a transaction fee; and
- 4. No later than April 1, 2023, notifies all restaurants in writing, that have an existing contract with the third-party food platform of the options described in Subsections D. and E. This written notification shall be available in each language spoken by approximately 1,000 or more Limited English Proficiency individuals in the City of Portland service area, as available on the City of Portland’s website.
- H. A third-party food platform is prohibited from refusing to provide delivery or refusing to process an order for take-out on behalf of a restaurant based solely on the restaurant’s decision to select only services described in Subsections D. and E.
- I. All contracts between a third-party food platform and a restaurant shall clearly define the fees, commissions, or charges associated with contracted services. For example, if a restaurant enters into a contract with a third-party food platform for only delivery service, that contract shall clearly state a fee, commission, or charge of not more than 15 percent of the purchase price per order for delivery service.
- J. A third-party food platform shall not reduce the compensation rate paid to a delivery service driver or request that a delivery service driver accept lower compensation in the future or garnish gratuities to comply with the terms of this Chapter.
- K. At the time a final price is disclosed to a customer for the intended order from a restaurant through a third-party food platform and before that transaction is completed by the customer, the third-party food platform shall disclose to the customer, in plain language and in a conspicuous manner, any commission, fee, or any other monetary payment charged to the customer by the third-party food platform.
- L. After a transaction occurs for an order from a restaurant through a third-party food platform, the third-party food platform shall provide an electronic or printed receipt to the customer. The receipt shall disclose, in plain and simple language and in a conspicuous manner:
- 1. The purchase price.
- 2. Any delivery charge, gratuity, or service fee imposed on and collected from the customer by the third-party food platform.
- 3. Any delivery charge, gratuity, or service fee imposed on and collected from the customer by the restaurant, in addition to the purchase price.
- 4. Any tip or gratuity that will be paid to the person delivering the food, and not to the third-party food platform or restaurant, that was added into the transaction when it occurred.
- M. A third-party food platform shall not charge any fee from a restaurant for a telephone order if a telephone call between such restaurant and a customer does not result in an actual transaction during such telephone call.
- N. A third-party food platform must terminate a restaurant service contract within three business days of receipt of notice from the restaurant.