Food delivery services are often called out, on many different issues. And consumers aren’t shy about registering their displeasure. Now California has passed legislation forcing delivery services to refund customers for late or botched deliveries…
Over the past few years, we’ve posted a storm of stories about the real – and alleged – shortcomings and offences of the food delivery service industry…
What they do
There are shadowy things going on in the background when you place a delivery order. And many of them are racking up ridiculous profits for the delivery services. They’re socking it to both you and the restaurants you order from. And they’re doing it shamelessly, because they think they’ve got you and the restos over a barrel. You’re addicted to deliver, and the restos can’t survive without offering delivery service.
The result? Restos are being hit with 20 – 30 percent commission fees from the delivery services. And customers are finding that delivery fees often total more than the cost of the food order, itself.
What’s being done
Many cities and higher levels of government are taking legislative steps to tame the delivery service providers and their nefarious ways. Fee structures are being addressed, with special attention to the way services handle driver tips.
Now, California has become the first US state to address the fundamental – and perhaps most vexing for customers – issue of incorrect and uncompleted deliveries.
The Bill
Bill AB 578 requires apps like Uber Eats, DoorDash, Postmates, and others to provide full refunds to customers if an order is not delivered or if a driver delivers the wrong order.
“When orders go wrong, customers deserve transparency and real support: not hidden fees or auto-mated runarounds.,” the Bill’s proposer, state legislature rep Rebecca Bauer-Kahan, explains. In her Instagram post, Bauer-Kahan enumerates the high points…
AB 578 requires food delivery companies to:
• Provide an itemized breakdown of every order, including fees and tips
• Offer access to a human customer service representative
• Issue refunds back to the original payment method when appropriate
• Protect delivery workers by banning tip practices that reduce base pay
In force now
The Bill was passed last year, and slated to come into force the fist of 2026. In other words, it’s live now. And anyone ordering food via a delivery service in California is now covered.
My take
It will be interesting to see if the delivery services have raised their bars to meet the Bill’s requirements. We’ve seen no sign of customer complaints that the services are not clearing the new bar they’re supposed to meet.
I hope other jurisdictions – even in other countries – follow Bauer-Kahan‘s example, and ensure delivery service customers in their domains receive the fundamental protections Bill 578 affords Californians…
~ Maggie J.