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Morgan Hill
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January 27, 2021

County caps food delivery fees

Supervisors unanimously approve ordinance

The Santa Clara County Board of Supervisors voted unanimously Dec. 15 to put a temporary cap on commissions and fees charged by third-party food delivery services to local restaurants. The ordinance, initially proposed by County Supervisors Joe Simitian and Cindy Chavez, will go into effect Dec. 19.

The ordinance applies throughout Santa Clara County, including all 15 incorporated cities and the unincorporated county, except in cities with a more restrictive cap on order and delivery fees (the more restrictive provision/ordinance applies). 

The proposed ordinance caps delivery service fees charged by third party delivery at 15 percent of the value of an order, and the fees for order and listing services (pickup/takeout) at 10 percent of the value of an order.  

The costs of compliance may not be imposed on delivery workers and allows enforcement through civil action by restaurants or delivery workers in the courts. 

“I’m pleased we were able to turn this around in a week to meet the urgency of the situation,” Simitian said. “Many of these restaurants don’t have the infrastructure to host their own platforms for takeout and delivery, so they are often forced to accept excessive fees and commissions which can be up to 30 percent or more.”

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