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AB116

Rules for Food Delivery Apps and Restaurants

Last scannedAug 22, 2026, 1:27 AM

In one sentence

This law requires restaurants to have a local business license before they can take online orders through delivery apps, and it sets fines if rules are broken.

What it does

  • Prohibits food delivery platforms from helping with an online order unless the restaurant has the required local business license for its address.
  • Prohibits restaurants from accepting online orders through these platforms without having the required business license.
  • Requires platforms to remove a restaurant if they receive specific, verifiable proof that the restaurant broke the rules or lied about its license.
  • Sets a fine of up to $100 for each illegal order taken by a restaurant.

Who it affects

  • Food delivery service platform providers, such as websites and mobile apps that arrange food pickup or delivery.
  • Food dispensing establishments, which are places like restaurants that prepare food for immediate eating.

Limits and unknowns

  • The law does not take effect until January 1, 2026.
  • Fines for platforms only start if they keep an unlicensed restaurant on their app more than 10 days after receiving proof of the violation.

Plain language

Terms to know

Food delivery service platform provider
A website, online service, or mobile app where users can buy food from many different restaurants and arrange for same-day pickup or delivery.
Food dispensing establishment
A business that prepares and serves food meant to be eaten right away, such as a restaurant or cafe.

Official record

Sources

Source attached

Official summary

Revises provisions relating to food delivery service platform providers. (BDR 52-898)