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California law bans delivery apps from listing a restaurant without an agreement

leginfo.legislature.ca.gov

211–220 of 663 posts

Re: California law bans delivery apps from listing a restaurant without an agreement

#211
post #190

HN is so strangely anti tech and anti startup at this point. I'm not sure exactly who's on the platform at this point. Unemployed OSS devs bitter that everyone else in the valley is making more money than them?

Yea I’ve noticed this too. HN is starting to feel more and more like my social surroundings here in Sweden.

On the other hand my social surroundings are obviously picking up some aspects of HN. Maybe culture is converging globally in a lot of ways?

Re: California law bans delivery apps from listing a restaurant without an agreement

#212

This is undeniably a good thing if you put yourself in the shoes of the restaurant. Imagine if someone went around impersonating your business online, leveraging the good name you have built for yourself over the decades. They create ads offering your expert development services, ostensibly competing with your existing website, but with intentionally slashed pricing and a ‘creatively’ misrepresented offering (aka gro…

Was impersonation legal in California before this law?

Re: California law bans delivery apps from listing a restaurant without an agreement

#213
post #147

Earlier quoted context omitted.

I don't understand how couriers are extracting any margin from restaurants.

Right now restaurants are in a damned if you do damned if you don't situation with the various delivery services out there. If the restaurants explicitly agree to do business with grubhub and the like, they have to give the delivery service a 10% cut. The delivery service also takes a percentage cut on the customer side. I think there's the expectation that the restaurants keep charging the delivery service the same…

So in the second scenario, you get to keep on selling food for full price and the delivery companies generate business for you for free, but it's a bad deal because .. a few people might leave bad reviews on yelp when something is clearly DoorDash's fault? It sounds like a good deal to me. You get bad reviews from idiots no matter what anyway.

Re: California law bans delivery apps from listing a restaurant without an agreement

#214
post #142

Earlier quoted context omitted.

The goal is to kill the competition, no local delivery service can compete with a few million in VC funding. Once you are the only delivery in town you can raise the prices all you want and force the local restaurants into one sided deals on your terms. It also has a rather questionable legality

> no local delivery service can compete with a few million in VC funding A simple ordering form on the restaurant's own website always gets preference from me and seems to usually end up being the first result on Google/Google Maps.

No, part of the problem here is that the big delivery company will always win in SEO.

Re: California law bans delivery apps from listing a restaurant without an agreement

#215
post #186

Earlier quoted context omitted.

Why enforce existing law, we can you use this opportunity to create ever more complex laws to ensure stake holders that already abused to the condition the law is purporting to address can maintain their advantage and ensure no new entrants to the market That is all this does, it protect GrubHub, DoorDash and other large players from competition

How, specifically, does this protect GrubHub/DoorDash/etc?

this law is designed to protect those companies who already made billions on abusing existing laws by making it seem like what they did was legal, a "loophole" in the law that is now "closed" for new competitors

They are not "new entrants" in the market, they have a network effect now so it will be preferable to them to sign exclusive deals with restaurants to further ensure there can not be any competition

Re: California law bans delivery apps from listing a restaurant without an agreement

#216
post #95
post #87

Earlier quoted context omitted.

Then why not make impersonation illegal? If they enforce making reselling illegal proactively they can enforce making impersonation illegal just the same. This is overreach. I would be rightly pissed if I lived in CA.

Someone else has mentioned that impersonation is certainly already illegal, and the right solution would be prosecution instead of making a new law, and I agree. I'm not from CA/US so I have no idea why the legislators felt the need for a new law.

Part of this is that it’s really expensive to litigate that nuance in court because even if you believe you’re correct, a company like GrubHub can continue to do business for years and years while dragging this out through the courts. Especially because of covid, many cases like this are already backed up and GrubHub could probably be happily continuing to fleece small businesses for over half a decade.

Also, if a judge for whatever reason doesn’t agree with it, say, “if the government wanted trademarks to be enforced in this manner they’d pass a law about it, no deal” (this happens Eg. An argument that made it all the way up to the Supreme Court, taking years and years to do so, is that discriminating against trans people isn’t discriminating on the basis of sex because if legislature intended it that way they’d say it more explicitly in law. Imagine how many trans people were fired for being trans while this thing was going through the courts.) then now you have to pass legislature again.

Re: California law bans delivery apps from listing a restaurant without an agreement

#217

This is undeniably a good thing if you put yourself in the shoes of the restaurant. Imagine if someone went around impersonating your business online, leveraging the good name you have built for yourself over the decades. They create ads offering your expert development services, ostensibly competing with your existing website, but with intentionally slashed pricing and a ‘creatively’ misrepresented offering (aka gro…

IDK, this seems more like a mixed-bag to me on account of being opt-in instead of opt-out. Absolutely I agree that businesses should be able to easily opt out of being listed on a given delivery platform if/when it causes problems for them. But on the flip side, I've observed a lot of restaurant owners not having the time, energy, or know-how to set up even basic online things that could really boost their business.…

If they don’t have the time/skill/capital to handle online business on their own, then they can set up a partnership with these companies. That is a minimal effort, no?

The key thing is this deals with a predatory practice.

Re: California law bans delivery apps from listing a restaurant without an agreement

#218
post #124

This is undeniably a good thing if you put yourself in the shoes of the restaurant. Imagine if someone went around impersonating your business online, leveraging the good name you have built for yourself over the decades. They create ads offering your expert development services, ostensibly competing with your existing website, but with intentionally slashed pricing and a ‘creatively’ misrepresented offering (aka gro…

The misrepresentation would seem to be the big thing. Someone, let's call them Joe, publishes a list of restaurants online with links to their menus and offers to deliver for the price of the order with tip plus a $10 delivery fee. And has a clear disclaimer that they're not affiliated with the businesses. That seems pretty unobjectionable. And how would the restaurant even know? [ADDED: Subject of course to any heal…

> And has a clear disclaimer that they're not affiliated with the businesses.

This isn’t actually clear. GrubHub’s about page:

“ Grubhub is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners. ”

This tells me as a customer that the restaurant is a consenting partner. This is a lie.

EDIT: a commentor below had issue with my use of the word lie here. To clarify, I meant that this is not a clear disclaimer.

Re: California law bans delivery apps from listing a restaurant without an agreement

#219
post #15

always entertaining how regulation unintentionally acts to increase barriers to entry for incumbents. in this case closing the barn doors almost a decade after the horse left the stable. you couldn't pay politicians enough for the favors they perform in earnest. edit:to elaborate, the growth hacks of the likes of Doordash and Postmates doing exactly this got them their start, now it will be illegal to compete with th…

The barn door needs to be closed. I don't care if it means there won't be more doordashes if the only way those companies can exist is by scamming customers and exploiting restaurants. I don't see why this is a problem. They're called "growth hacks" for a reason. If your concern is that people won't be able to compete with DoorDash now without breaking the law, maybe DoorDash should be penalized for past misbehavior.…

I agree with you on cab-hailing given that cabs were such a miserable experience in so many cases. (Though I expect usage will certainly go down as prices rise and coverage may get thinner as a result.)

I don't know about prepared food delivery. Dominos makes it work well. A lot of Chinese restaurants do, usually for a pretty small delivery radius. But there are a lot of things that just don't have a critical mass of people willing to pay for what 30 minute delivery costs. (On the other hand, the consensus seems to be that grocery delivery, or just pickup, is going to stay fairly common going forward.)

Re: California law bans delivery apps from listing a restaurant without an agreement

#220
post #156

Earlier quoted context omitted.

> Why? The practice involved is in response to the absolute garbage of misrepresentation of a restaurant's telephone number to be intercepted by your own call centre's. Sure, that's bad and that should be banned. But that's not the practice banned. What got banned is me paying someone to pick up my food for me. I could still run a website that misrepresents the restaurant's telephone number and intercepts your calls.…

That’s not what the law does. It addresses the problem GP pointed out, and it bans the service you’ve described as well. It also doesn’t forbid you from paying someone to pick your food up for you. Here’s the relevant text: > 22599. A food delivery platform shall not arrange for the delivery of an order from a food facility without first obtaining an agreement with the food facility expressly authorizing the food del…

Why should a restaurant be allowed to ban me from hiring someone to deliver for me?
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