Third-Party Food Delivery Service Fee Cap
Adams County’s restaurants are part of the cultural fabric of our neighborhoods. They provide jobs and contribute to the tax base. The economic crisis caused by COVID-19 has been particularly devastating to many restaurants.
Due to COVID-19 restrictions, many restaurants use third-party services to support the delivery of their food to customers. These third-party delivery services charge customers and restaurants fees and commissions. However, some services are charging excessive fees and listing restaurants as members of their service without their knowledge. As a result, the Colorado Legislature passed House Bill 20B-1005 during the December 2020 special session granting new authorities to the governing bodies of municipalities and counties to limit the fee a third-party food delivery service may charge to a retail food establishment, as well as place other restrictions on delivery services by ordinance or resolution. The Adams County Board of Commissioners enacted a resolution regulating fees and increasing transparency of third-party food delivery platforms on December 15, 2020.
Beginning December 15, 2020, and expiring when the indoor capacity restrictions imposed on retail food establishments due to the COVID-19 pandemic are removed, retail food establishments located only within the unincorporated area of Adams County may submit a complaint via an online portal for any violation of the five areas defined in the resolution:
- Retail Food Establishment Consent - Third-party food delivery service cannot list a retail food establishment's information on their platform without written consent.
- Delivery Charges - Third-party food delivery services cannot assess a commission or fee of more than 15% of the total purchase price or menu price of an online order, excluding gratuities, taxes, and other fees.
- Delivery Wage Garnishment - Third-party food delivery services cannot garnish tips or lower the wages of a delivery person to compensate for any diminished revenues that result from the establishment of this resolution.
- Transparency of Transaction - Third-party food delivery services must provide to the end consumer an electronic or printed receipt that conveys in plain and simple language all fees for both the retail food establishment and the end consumer charged by the third-party food delivery service.
- Telephone Charges - Third-party delivery services cannot charge a retail food establishment any fee for phone calls made by customers through their platforms unless those calls result in an order.
Violations will subject the third-party delivery service to a possible civil penalty of $100 per violation plus any amount above the 15% fee cap that was charged.
If your retail food establishment feels you have experienced a violation, please use this online portal to file a complaint with the Community & Economic Development Department. If necessary, a member of the team will contact you via the email address you provide for more information. A summary of the findings of the investigation will also be shared.
Submit a Complaint |
Are You in Unincorporated Adams County?
- Visit our online public records and maps page.
- Click "I want to."
- Click "Search for Parcel by Address.”
- Enter the Street Number and Street Name.
- Click "Search."
- Click the 3 dots next to the Parcel #.
- Click "Zoom to Feature."
- The map will zoom in to the property.
- If the property is white, it is located within unincorporated Adams County.
- If the property is shaded another color, it is located within another jurisdiction.
Violation Process
Once a complaint is received, Adams County staff will conduct an investigation. If the complaint is determined to be valid, the third-party delivery service will receive a Courtesy Notice and be given 10 days to correct the violation. Documentation proving the violation has been corrected must be submitted to Adams County within the 10 days, and the violation will be closed. If the violation is not corrected, the third-party delivery service will receive a Notice of Violation and shall be subject to a civil penalty of one hundred dollars ($100) per violation instance, plus the amount of commission or fee the third-party food delivery service charged the retail food establishment that exceeds the 15% of the purchase price.