| Chapter 380 |
| 2021 -- H 5346 SUBSTITUTE A Enacted 07/13/2021 |
| A N A C T |
| RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS |
Introduced By: Representative Robert E. Craven |
| Date Introduced: February 05, 2021 |
| 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 or that 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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| LC000962/SUB A |
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