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        <title><![CDATA[Food delivery apps already violating Big Apple fee cap]]></title>
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            <media:title type="html">Food delivery apps already violating Big Apple fee cap</media:title>
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        <content:encoded><![CDATA[<p>Lookout Grubhub and Uber Eats, you’re under scrutiny by NYC lawmakers &#8212; again.</p><p>The NYC Councilman <strong>behind a measure to limit the fees food delivery apps</strong> can charge restaurants during the pandemic is now demanding the city agency in charge of enforcing the law seek out violators and slap them with hefty fines.</p><p>The demand emerged Thursday when Christian Klossner, executive director of Mayor De Blasio’s Office of Special Enforcement, revealed at a hearing that it’s received at least two complaints about overcharges since the city cracked down on delivery fees in May.</p><p>Klossner said an unnamed delivery app appear to have charged one restaurant a 10-percent commission for a pickup food order &#8212; or more than twice the rate permitted by legislation intended to help struggling eateries survive the pandemic. In another instance, an app charged a credit card processing fees that exceeded what’s allowed.</p><p>“The company that charged 10 percent for a pick up has agreed to refund it,” Klossner said when asked what OSE was doing to rectify the first situation.</p><p>But that didn’t sit well with NYC Councilman Mark Gjonaj, who heads up the small business committee that drew up the legislation. He demanded OSE consider fining the offending company &#8212; and raised concerns that the practice might be widespread.</p><p>“If these companies have done it to one restaurant, it must be widespread,” Gjonai said at the hearing. “You would not know that this is a problem unless you are told by restaurants? How are you getting the word out to the thousands of businesses that they need to bring this to your attention?”</p><p>The hearing was called over plans to extend the legislation, which has capped at 5 percent the fees apps can charge Big Apple restaurants for pick-up orders made through their technology. Fees for food deliveries are limited to 15 percent.</p><p>Klossner’s testimony was followed by two restaurateurs &#8212; Andrew Ding of The Expat and George Constantinou of four restaurants including Bogota Latin Bistro &#8212; who said they continue to be charged fees for calls through Grubhub’s app that never resulted in orders, which is also banned.</p><p>Grubhub declined to comment but in written testimony its spokeswoman Amy Healy said Grubhub &#8212; which owns Seamless &#8212; has been unfairly penalized by the cap. Healy&#8217;s testimony also said the cap has also hurt restaurants through a 13-percent decrease in orders for independent restaurants.</p><p>Not so, said the four restaurant owners who testified, including Evan Franco of Brookyn Crepe &amp; Juice, who said that he has already saved $7,500 in fees from Grubhub.</p><p>“We need long term caps,” he said.</p>]]></content:encoded>
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