State Rep. Mike Mueller, of Linden, today testified before the House Commerce and Tourism Committee on his plan to protect restaurants from being taken advantage of by independent delivery services.
The measure would prohibit third-party distribution companies from using any likeness, trademark, or other intellectual property of a merchant without consent, Mueller said.
“Some delivery services are offering food from restaurants on their apps without first getting permission from the business, and it’s costing restaurants money,” Mueller said. “Our restaurant owners are already struggling because of the coronavirus pandemic.
“Now, to top it off, restaurants who do have active partnerships are being charged fees that are not expressively written in their contracts. My plan will protect our restaurant owners.”
Mueller also raised concerns about food quality. If a third-party service takes a long time to deliver food, for instance, it can reflect poorly on the restaurant by no fault of its own.
“I’m worried for our family-owned restaurants,” Mueller said. “While listing a restaurant on a delivery-service app might seem like a good advertising opportunity, it’s not the case when the company is unfairly subjected to service fees.”
House Bill 5770 remains under consideration by the committee.