Summary of the Food Delivery Service Fee Act
Last updated on July 31, 2024
A permanent cap on fees charged by food delivery companies is now in place. The Food Delivery Service Fee Act and the Food Delivery Service Fee Regulation now applies to food delivery platforms, restaurants and food delivery drivers.
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This content is a summary of the Food Delivery Service Fee Act and the Food Delivery Service Fee Regulation. It is not legal advice and does not provide an interpretation of the law. In the event of any difference between information on this webpage and the Act, the Act will prevail.
The Food Delivery Service Fee Act provides more cost certainty to restaurant operators. It limits the fees that food delivery platforms can charge for ordering and delivery services. The Act:
- Applies to food delivery platforms that serve 500 or more restaurants.
- Limits fees to no more than 20% of the dollar amount of an order, excluding tax and tip.
- Bans reducing driver earnings to make up for revenues lost by complying with the Act.
The Act limits the amount food delivery platforms can charge restaurant operators for food ordering and delivery services. To be eligible, restaurants must both prepare and serve food in their establishment. Fees charged to restaurants must not exceed 20% of the dollar amount of an order, excluding tax and tips.
Restaurant operators may choose to accept offers for enhanced services. This may result in higher ordering and delivery fees.
We encourage restaurant operators and food delivery platforms to work together to find solutions. If an issue cannot be resolved, restaurants or organizations representing restaurants can submit a complaint.
Before submitting a complaint please confirm the restaurant operator:
- Was not offered 20% for core delivery and ordering services
- Did not agree to receive enhanced services
- Is being refused their right to cancel previously agreed-to enhanced services and return to the 20% fee for core services
- Is being charged the 20% fee but is not receiving one or more core services such as:
- The restaurant is not searchable in the app
- The app will not take orders for the restaurant
- The food delivery platform is not transmitting payment to the restaurant operator
- The food delivery platform is not picking up orders
- The food delivery platform is not delivering orders after picking them up
To submit a complaint about a food delivery platform please email FDSFA@gov.bc.ca and include:
Your business contact information:
- Your name and title
- Restaurant establishment name and address
- Contact details (phone and email)
- Whether a message can be left at your phone number
Details of the complaint:
- Name of food delivery service
- Explanation of how they contravened the Act
- Any applicable documents that demonstrate noncompliance with the Act
- Date range when the contravention(s) occurred
Applicability
This Act applies to food delivery platforms that during a previous reference period:
- Provided both ordering and delivery services, and
- Served 500 or more restaurant establishments
Reference periods run from January 1 to June 30 and July 1 to December 31.
Core services:
- Basic services for ordering and delivery of food and beverages
- Ordering services require a customer to search a restaurant, place an order and pay for the order through an app
- Delivery services require the platform to pick up the order from the restaurant and deliver it to the customer
- Limited to fees of no more than 20% of the dollar amount of an order, excluding tax and tip
Enhanced services
Food delivery platforms may offer restaurant operators enhanced services for fees exceeding 20% described above. Enhanced services must:
- Offer more than core delivery and ordering services
- Be agreed to by the restaurant operator
- Allow the restaurant operator to cancel and return to the lower 20% fee cap
Examples of enhanced services may include but are not limited to:
- Marketing promotions
- Data and analytics
- Lower customer fees
Under the Act, food delivery platforms may not reduce the compensation of food delivery drivers as a result of having to follow the Act.
Contact the Civil Resolution Tribunal online or by phone at 1-844-322-2292.