2021 -- S 0788

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS

     Introduced By: Senators Lombardi, Lombardo, Raptakis, Archambault, Picard, and
Ciccone

     Date Introduced: April 08, 2021

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL

REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 58

THIRD PARTY DELIVERY SYSTEMS

     6-58-1. Definitions.

     As used in this title, unless the context otherwise requires:

     (1) "Agreement" means a written contractual agreement between the merchant and the

third-party delivery service.

     (2) "Customer" means the person, business or other entity that places an order for merchant

products through the marketplace.

     (3) "Likeness" means identifiable symbols attributed and easily identified as belonging to

a specific merchant or retailer.

     (4) "Marketplace" means the third party’s proprietary online communication platform

where customers can view and search the menus of merchants and place an order for merchant

products via the third party’s website or mobile application for delivery or by the third-party

delivery service, or an independent contractor of the third-party delivery service, to the customer.

     (5) "Merchant" means a food service establishment as set forth in § 21-27-1(9) or other

retail entity.

     (6) "Third-party delivery service" means a company, organization, or entity, outside of the

operation of the merchant’s business that facilitates delivery or online ordering services to

customers.

     6-58-2. Third-Party use of merchant trademarks and likeness.

     A third-party delivery service may not use the likeness, registered trademark, or any

intellectual property belonging to the merchant to falsely suggest sponsorship or endorsement by,

or affiliation with the merchant.

     6-58-3. Merchant consent.

     A third-party delivery service may not take orders and arrange for the delivery of merchant

products through the third-party delivery service’s marketplace without obtaining the written

consent of the merchant.

     6-58-4. Indemnity Agreement Void.

     No agreement entered into in accordance with this chapter, shall include a provision, clause

or covenant that requires a merchant to indemnify a third-party delivery service, any independent

contractor or agent of the third-party delivery service, for any damages or harm caused by the third-

party delivery service or any independent contractor or agent of the third-party delivery service.

     6-58-5. Enforcement and Penalties.

     (a) Any merchant whose likeness was used by the third-party delivery service, or who

appears on a third-party delivery service’s marketplace, in violation of this chapter, may bring an

action in the superior court of the county in which the merchant or third-party delivery service is

found, or in the superior court of the county as is otherwise provided by law, to recover actual

damages or five thousand dollars ($5,000), whichever is greater. The court may, in its discretion,

and where the conduct involves reckless or callous indifference to statutorily protected rights,

award punitive damages and other equitable relief it deems appropriate.

     (b) Any third-party delivery service who violates this chapter shall pay to the state a civil

penalty of not more than one thousand dollars ($1,000) per violation. Each day a violation occurs

shall count as a separate violation.

     6-58-6. Uniformity.

     No municipality shall establish, mandate, or implement any law inconsistent with the

provisions of this chapter.

     SECTION 2. This act shall take effect ninety (90) days after passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS

***

     This act would prevent a third-party delivery service from using the likeness, registered

trademark, or any intellectual property belonging to a merchant to falsely suggest sponsorship or

endorsement by, or affiliation with said merchant without the merchant’s consent. Penalties for

violations of the provisions of the chapter would consist of the greater of actual damages or five

thousand dollars ($5,000) and punitive damages may be awarded in the court's discretion.

     This act would take effect ninety (90) days after passage.

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