House File 2408 - Introduced HOUSE FILE 2408 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 688) A BILL FOR An Act relating to the delivery of restaurant food pursuant to 1 a third-party food delivery service. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5568HV (1) 89 es/rn

H.F. 2408 Section 1. NEW SECTION . 137G.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Agreement” means a written contractual agreement between 4 the restaurant and the third-party food delivery service. 5 2. “Customer” means the person, business, or other entity 6 placing an order for restaurant products through a third-party 7 food delivery service’s proprietary online communication 8 platform. 9 3. “Likeness” means identifiable symbols attributed and 10 easily identified as belonging to a specific restaurant or 11 retailer. 12 4. “Ready-to-eat food” or “food” means menu items sold by 13 the restaurant. 14 5. “Restaurant” means a food establishment defined in 15 section 137.1. 16 6. “Third-party food delivery service” or “food delivery 17 service” means a company, organization, or entity that 18 facilitates the delivery of food from a restaurant to a 19 customer as a result of a single commercial transaction 20 over the internet, whether directly or through a third-party 21 application. 22 Sec. 2. NEW SECTION . 137G.2 Restaurant and food delivery 23 service —— agreement. 24 1. A food delivery service shall not arrange for the 25 delivery of an order from a restaurant without first entering 26 into an agreement with the restaurant expressly authorizing the 27 food delivery service to take orders and deliver meals prepared 28 by the restaurant. 29 2. A food delivery service shall not use, without first 30 obtaining a restaurant’s consent, a restaurant’s likeness, 31 registered trademark, intellectual property, or the name to 32 advertise the third-party food delivery service, unless all of 33 the following apply: 34 a. The use is otherwise permitted under federal or state 35 -1- LSB 5568HV (1) 89 es/rn 1/ 4

H.F. 2408 law. 1 b. The use is accompanied by a prominent disclaimer 2 beneath any likeness, registered trademark, other intellectual 3 property, or the name of the restaurant in a font that 4 is at least as large as any other text appearing on the 5 advertisement, internet site, mobile application, or other 6 platform on which the reference to the food delivery service 7 establishment appears: 8 THIS THIRD-PARTY FOOD DELIVERY SERVICE IS NOT AN AUTHORIZED 9 DELIVERY SERVICE FOR THIS RESTAURANT. THIS THIRD-PARTY FOOD 10 DELIVERY SERVICE DOES NOT HAVE AN AGREEMENT TO DELIVER FOR THIS 11 RESTAURANT. PLEASE CONTACT THE RESTAURANT DIRECTLY TO OBTAIN 12 UP-TO-DATE INFORMATION ON MENU ITEMS. 13 3. The disclaimer must be noticeable and of a size and 14 color that sets the disclaimer apart on the platform from other 15 parts of the advertisement, webpage, mobile application, or 16 other platform, such as a contrasting style and color to the 17 surrounding text. 18 Sec. 3. NEW SECTION . 137G.3 Food safety —— liability. 19 1. Ready-to-eat food delivered through a third-party food 20 delivery service shall be transported in a manner that meets 21 all of the following requirements: 22 a. The interior floor, sides, and top of the food holding 23 area shall be clean and capable of withstanding frequent 24 cleaning. 25 b. The food shall be maintained at a holding temperature 26 necessary to prevent spoilage. 27 c. All bags or containers in which ready-to-eat foods 28 are being transported or delivered from a restaurant to a 29 customer shall be closed or sealed by the restaurant with a 30 tamper-resistant method prior to the food delivery service 31 taking possession of the ready-to-eat food. 32 d. The individual delivering the ready-to-eat food items 33 shall not have any passengers, including animals or children 34 when ready-to-eat food for delivery is being transported in the 35 -2- LSB 5568HV (1) 89 es/rn 2/ 4

H.F. 2408 vehicle. 1 e. Smoking or vaping in the vehicle while ready-to-eat food 2 items are in the vehicle shall be prohibited. 3 2. A third-party food delivery service transporting 4 ready-to-eat food shall be liable for any harm or injury 5 caused by a failure by the food delivery service to meet the 6 requirements of this section. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to the delivery of restaurant food 11 pursuant to a third-party food delivery service. 12 The bill defines “customer” as a person or business ordering 13 food from a third-party food delivery service. The bill 14 defines “third-party food delivery service” or “food delivery 15 service” as an independent business that delivers food from 16 a restaurant upon a customer placing an order on the food 17 delivery service’s online platform. 18 The bill requires a restaurant and a food delivery service 19 to have an agreement authorizing food delivery prior to a food 20 delivery service transporting food on behalf of a restaurant. 21 The bill prohibits food delivery services from using a 22 restaurant’s image, likeness, intellectual property, or other 23 identifying material without a restaurant’s consent unless 24 otherwise allowed by state or federal law and accompanied by 25 a disclaimer indicating the independence of the food delivery 26 service from the restaurant. The disclaimer must be obvious to 27 the customer. 28 The bill provides that a food delivery service shall 29 transport food in accordance with food safety provisions, 30 including maintaining a food holding area that is cleaned 31 frequently and able to withstand frequent cleaning, maintaining 32 the food for delivery at a holding temperature necessary to 33 prevent spoilage, transporting the food in tamper-resistant 34 and sealed containers, and refraining from carrying passengers 35 -3- LSB 5568HV (1) 89 es/rn 3/ 4

H.F. 2408 or smoking or vaping. The bill provides that a food delivery 1 service that fails to maintain food safety requirements 2 established by the bill shall be liable to the restaurant for 3 related injuries or harm. 4 -4- LSB 5568HV (1) 89 es/rn 4/ 4