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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Stefani and Lowenthal</ns0:AuthorText>
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<ns0:Name>Stefani</ns0:Name>
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<ns0:Title> An act to add Chapter 22.4.5 (commencing with Section 22599.7) to Division 8 of the Business and Professions Code, relating to business practices. </ns0:Title>
<ns0:RelatingClause>business practices</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>California Restaurant Reservation AntiPiracy Act.</ns0:Subject>
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<html:p>Existing law regulates various businesses to preserve and regulate competition and prohibit unfair practices, among other purposes. Existing law imposes various business practice restrictions on a food delivery platform, defined as an online business that acts as an intermediary between consumers and multiple food facilities to submit food orders from a consumer to a participating food facility, and to arrange for the delivery of the order from the food facility to the consumer. Existing law prohibits a food delivery platform from arranging the delivery of an order from a food facility without first obtaining an agreement with the food facility expressly authorizing the platform to take orders and deliver meals, as prescribed.</html:p>
<html:p>This bill would prohibit a third-party restaurant reservation service, as defined, from listing,
advertising, promoting, or selling reservations for a food service establishment through the website, mobile application, or other platform of the third-party restaurant reservation service without a written agreement between that third-party restaurant reservation service and that food service establishment to include reservations at the food service establishment on that website, mobile application, or other platform.</html:p>
<html:p>The bill would authorize the Attorney General and a person who suffers harm for a violation of the act to recover specified civil penalties. The bill would also create in the State Treasury the California Restaurant Reservation AntiPiracy Act Fund into which any civil penalty recovered by the Attorney General pursuant to the act would be deposited and would make the moneys in the fund available, upon appropriation by the Legislature, for the purpose of the act. </html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Chapter 22.4.5 (commencing with Section 22599.7) is added to Division 8 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_13819572-8806-4DAA-9EB5-24AC6C8DE937" type="CHAPTER">
<ns0:Num>22.4.5.</ns0:Num>
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<ns0:LawHeadingText>California Restaurant Reservation AntiPiracy Act</ns0:LawHeadingText>
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<ns0:LawSection id="id_6D7194F6-616D-45BD-9F58-15F8D6435D0F">
<ns0:Num>22599.7.</ns0:Num>
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<html:p>This chapter shall be known, and may be cited, as the “California Restaurant Reservation AntiPiracy Act.”</html:p>
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<ns0:Num>22599.8.</ns0:Num>
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<html:p>For purposes of this chapter, the following definitions apply:</html:p>
<html:p>
(a)
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“Food service establishment” means a retail food establishment that prepares, serves, and vends food directly to the consumer.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Third-party restaurant reservation service” means any website, mobile application, or other internet service that both:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Offers or arranges for reserving on-premises service for a customer at a food service establishment.
</html:p>
<html:p>
(B)
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Is owned and operated by a person other than the person who owns that food service establishment.
</html:p>
<html:p>
(2)
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“Third-party restaurant reservation service” does not include a reservation distribution channel that is authorized to distribute reservations by way of a contractual relationship with either the applicable food service establishment or a contractual designee of the food service establishment who obtained reservation distribution rights directly from the food establishment.
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<ns0:LawSection id="id_15D7ADEA-9D2C-4480-88B6-53153F065B5E">
<ns0:Num>22599.9.</ns0:Num>
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(a)
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A third-party restaurant reservation service shall not list, advertise, promote, or sell reservations for a food service establishment through the website, mobile application, or other platform of the third-party restaurant reservation service without a written agreement between that third-party restaurant reservation service and that food service establishment to include reservations at the food service establishment on that website, mobile application, or other platform.
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<html:p>
(b)
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Any person who violates or causes another person to violate this chapter shall be subject to a civil penalty, as set forth in Section 22599.10.
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<ns0:LawSection id="id_DCED2851-50B9-4D19-B0EB-165D9D24C689">
<ns0:Num>22599.10.</ns0:Num>
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<html:p>
(a)
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The Attorney General may bring an action against any person who violates this chapter for all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A civil penalty not to exceed one thousand dollars ($1,000) for each violation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Injunctive or declaratory relief.
</html:p>
<html:p>
(3)
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Reasonable attorney’s fees.
</html:p>
<html:p>
(b)
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A person who suffers actual harm as a result of a violation of this chapter may also bring a civil action to recover all of the following:
</html:p>
<html:p>
(1)
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Actual damages.
</html:p>
<html:p>
(2)
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Reasonable attorney’s fees and costs.
</html:p>
<html:p>
(3)
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Injunctive or declaratory relief.
</html:p>
<html:p>
(4)
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Any other relief the court deems proper.
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<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of subdivision (b), a “person” includes a third-party restaurant reservation service that has an authorized contractual agreement with a food service establishment.
</html:p>
<html:p>
(2)
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A third-party restaurant reservation service, as described in paragraph (1), may bring an action for injunctive relief or monetary damages against unauthorized resellers or platforms facilitating unauthorized transactions in violation of this chapter, in accordance with subdivision (b).
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<ns0:LawSection id="id_EADF8F1D-18BB-40E0-B065-AA1C130FD9B3">
<ns0:Num>22599.11.</ns0:Num>
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<html:p>
(a)
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There is hereby created in the State Treasury the California Restaurant Reservation AntiPiracy Act Fund, into which any civil penalty recovered by the Attorney General pursuant to Section 22599.10 shall be deposited.
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<html:p>
(b)
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Moneys in the fund shall be available, only upon appropriation by the Legislature, for the purpose of administering this chapter.
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| Last Version Text Digest |
Existing law regulates various businesses to preserve and regulate competition and prohibit unfair practices, among other purposes. Existing law imposes various business practice restrictions on a food delivery platform, defined as an online business that acts as an intermediary between consumers and multiple food facilities to submit food orders from a consumer to a participating food facility, and to arrange for the delivery of the order from the food facility to the consumer. Existing law prohibits a food delivery platform from arranging the delivery of an order from a food facility without first obtaining an agreement with the food facility expressly authorizing the platform to take orders and deliver meals, as prescribed. This bill would prohibit a third-party restaurant reservation service, as defined, from listing, advertising, promoting, or selling reservations for a food service establishment through the website, mobile application, or other platform of the third-party restaurant reservation service without a written agreement between that third-party restaurant reservation service and that food service establishment to include reservations at the food service establishment on that website, mobile application, or other platform. The bill would authorize the Attorney General and a person who suffers harm for a violation of the act to recover specified civil penalties. The bill would also create in the State Treasury the California Restaurant Reservation AntiPiracy Act Fund into which any civil penalty recovered by the Attorney General pursuant to the act would be deposited and would make the moneys in the fund available, upon appropriation by the Legislature, for the purpose of the act. |