A new California law, set to take effect on Thursday, will require DoorDash, Uber Eats, and other food delivery apps to start providing full cash refunds to users instead of partial credits in the new year.
The bill marks a huge win for customers who have expressed frustration over poor delivery service, resulting in missing or incorrect orders. In the case of a partial order, only a partial refund is required.
Under Assembly Bill 578, food delivery platforms must give full refunds, including tips and taxes, to the original payment method rather than app credits. They must also provide an itemized cost breakdown of each transaction and offer customers a way to speak with a human customer service representative. Human contact is required when the customer’s needs can’t be met by an automated system.
Additionally, the bill provides safeguards for possible fraud attempts when refund requests are made.
The new law adds to California’s existing Fair Food Delivery Act of 2020, which imposes numerous restrictions on food delivery platforms to address allegations of unfair business practices.
Gov. Gavin Newsom (D-CA) signed AB 578 into law in October. The measure was written by Democratic state Assemblywoman Rebecca Bauer-Kahan, whose frustrating experience in ordering 12 pizzas for her daughter’s bat mitzvah prompted her to draft the legislation.
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Newsom framed AB 578 as one example of consumer protection laws he signed simultaneously.
“California is hard at work to help make your life more affordable,” he said in a statement during the latest government shutdown. “While the Trump administration’s policies increase prices and make it more difficult to get by, California is passing laws to help eliminate unnecessary fees and add-ons cost time and money.”