New York penalizes food delivery app for improper charges to restaurants
The New York City Hall announced on Wednesday an agreement that forces the food delivery app HungryPanda to pay nearly one million dollars for improperly charging restaurants, which will receive restitution. Mayor, the socialist democrat Zohran Mamdani, informed at a press conference about the agreement, which is the first obtained by applying local legislation that limits the so-called 'junk fees' of delivery apps to protect restaurants, according to a statement.
TL;DR
- HungryPanda will pay $580,000 in restitution to approximately 380 restaurants and a $294,000 fine.
- The agreement is the first under a local law limiting 'junk fees' charged by delivery apps.
- The app is accused of using tactics like consolidating fees or misclassifying charges to overcharge restaurants.
- The law caps delivery service commissions at 15%, basic service fees at 5%, and electronic payment processing fees at 3%.
- HungryPanda was previously fined for minimum wage violations concerning delivery workers.