New Illinois Law Regulates Food Delivery Apps

By Andrew Hensel | The Center Square

ILLINOIS — A new law that takes effect next year aims to protect restaurants and their properties from third-party delivery apps.

House Bill 3205, or The Fair Food and Retail Delivery Act, was filed by state Sen. Sara Feigenholtz, D-Chicago, and prohibits third-party delivery companies from posting a menu, registered trademark, or any intellectual property on their website without the restaurant's consent.

Without the provision, third-party apps can advertise items from restaurants without any notice.

“There are reasons some restaurants and bars may decide not to utilize delivery services," Feigneholtz said in a statement. "Protecting the brand and reputation that small businesses have worked to establish was a top priority and focus of this new law.”

Sam Toia, president of the Illinois Restaurant Association, explained how the process has been affecting restaurants and bars across the state.

"I have restaurants calling me about their menus being highjacked by these companies," Toia said.

This can often lead to poor reviews by customers, Toia said.

"Some members are like 'Sam, I serve calamari, calamari doesn't travel well, and these companies are hijacking it, placing an order, coming in, picking it up and then delivering it to people who then go on Yelp and say it tasted like rubber.'"

Restaurants across Illinois and across the nation have seen a rise in delivery orders since the start of the COVID-19 pandemic, as many had to rely solely on delivery.

Toia said that after everything, it is important that all parties work together to find a solution.

"We want to make sure that we stay transparent and come up with solutions that work for everybody," Toia said. "When we worked on this bill with Senator Feigenholtz, there were definitely third-party delivery people at the table with us."

After being signed by the governor, the law goes into effect on Jan. 1, 2023, and requires third-party services to have a contract in place with the restaurants they feature on their apps or websites.

The focus of the work of The Center Square Illinois is state- and local-level government and economic reporting that approaches stories with a taxpayer sensibility. For more stories from The Center Square, visit TheCenterSquare.com.