x
Breaking News
More () »

Denver's Leading Local News: Weather, Traffic, Sports and more | Denver, Colorado | 9NEWS.com

Here's how restaurant owners can report delivery apps that charge too much in fees

Denver City Council passed a bill on Monday that caps the fees for third-party food delivery companies, like DoorDash, to 15%.

DENVER — Denver has a new way restaurant owners can report third-party delivery apps that are charging too much in fees.

On Monday, city council unanimously passed an ordinance that, in part, caps the fees third-party food delivery companies, like DoorDash, can charge restaurants to 15%. 

Before that, some restaurants were being charged up to 35% on every order, according to Denver City Councilwoman Kendra Black who helped propose the bill in September.

RELATED: Food delivery apps are charging restaurants such high fees, restaurants are losing money

RELATED: Cap on third-party delivery fees draws across-the-board Denver City Council support

City Council also said they found some restaurants were being listed on third-party platforms without their knowledge. 

RELATED: Grubhub added a Colorado bakery to its platform without notice or permission

The ordinance established six rules, which went into effect Friday:

  1. Retail Food Establishment Consent -- Third-party food delivery platforms cannot list a retail food establishment's information on their platform without written consent. 
  2. Delivery Charges -- Third-party food delivery platforms cannot assess commission fees of more than 15% of the total purchase price or menu price of an online order, excluding gratuities, taxes, and other fees.
  3. Delivery Wage Garnishment -- Third-party food delivery platforms cannot garnish tips or lower the wages of a delivery person to compensate for any diminished revenues that result from the establishment of this Ordinance.
  4. Additional Fees -- Third-party food delivery platforms cannot charge additional fees that retail food establishments have not voluntarily agreed to pay.
  5. Transparency of Transaction -- Third-party food delivery platforms must provide to the end consumer a receipt that conveys in a clear, transparent, and plain language all fees for  both the retail food establishment and the end-consumer charged by the third-party food delivery platform.
  6. Telephone Charges -- Third-party providers cannot charge retail food establishment any fee for phone calls made by customers through their platforms unless those calls result in an order.

If a restaurant owner believes that a delivery app is in violation of any of those rules, they can file a complaint with the city using this online form.

Apps that are found to be in violation of the ordinance could face a fine of up to $999 per violation, each day a violation occurs, according to the city.

SUGGESTED VIDEOS: Local stories from 9NEWS