AB 1640

Introduced by Assembly Members Stefani and Lowenthal
(Coauthors: Assembly Members Pacheco, Michelle Rodriguez, and Blanca Rubio)
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.
business
California Restaurant Reservation AntiPiracy Act.
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 person from selling or transferring, or facilitating the sale or
			 transfer of, a reservation for a restaurant, as defined, for an amount higher than that person paid to acquire the reservation, except as specified.
The bill would authorize the Attorney General, any county counsel or city attorney, and an individual or entity who suffers actual harm as a result of a violation of the act to recover specified civil penalties. The bill would
			 require a civil penalty recovered by the Attorney General pursuant to the act to be deposited in the Public Rights Law Enforcement Special Fund.
The people of the State of California do enact as follows:
SECTION 1.
Chapter 22.4.5 (commencing with Section 22599.7) is added to Division 8 of the
Business and Professions Code
, to read:
22.4.5.
California Restaurant Reservation AntiPiracy Act
22599.7.
This chapter shall be known, and may be cited, as the California Restaurant Reservation AntiPiracy Act.
22599.8.
For purposes of this chapter, “restaurant” means a retail food establishment in this state that prepares, serves, and vends food directly to a customer.
22599.9.
A person shall not sell or transfer, or facilitate the sale or transfer of, a reservation for a restaurant for an amount higher than that person paid to acquire the reservation. This section shall not apply if the person has a written agreement with the restaurant that expressly authorizes the person to charge the higher amount.
22599.10.
(a) A person who violates or causes another person to violate this chapter shall be liable for the following, as applicable, in a civil action brought by the Attorney General, or any county counsel or city attorney, in a court of competent jurisdiction:
(1) A civil penalty not to exceed one thousand dollars ($1,000) for each violation.
(2) Injunctive or declaratory relief.
(3) Reasonable attorney’s fees.
(b) An individual or entity who suffers actual harm as a result of a
						  violation of this chapter may bring a civil action to recover all of the following:
(1) Actual damages.
(2) Reasonable attorney’s fees and costs.
(3) Injunctive or declaratory relief.
(4) Any other relief the court deems proper.
(c) A civil penalty recovered by the Attorney General pursuant to this section shall be deposited in the Public Rights Law Enforcement Special Fund established by Section 12530 of the Government Code.