House Bill 3

AN ACT TO PROVIDE DEFINITIONS RELATING TO THIRD-PARTY DELIVERY SERVICES THAT ADVERTISE, PROMOTE OR CONVEY ANY RELATIONSHIP WITH A MERCHANT OR USE THE NAME, LIKENESS, TRADEMARK, OR INTELLECTUAL PROPERTY BELONGING TO A MERCHANT ON THE THIRD-PARTY DELIVERY PLATFORM; TO PROHIBIT THIRD-PARTY DELIVERY SERVICES FROM USING THE NAME OR LIKENESS OR ANY INTELLECTUAL PROPERTY OF A MERCHANT WITHOUT AN AGREEMENT; TO PROHIBIT AN INDEMNITY CLAUSE IN SUCH AGREEMENT; TO PROVIDE A RIGHT TO BRING ACTION RELATING TO THIRD-PARTY DELIVERY SERVICES THAT USE THE NAME, LIKENESS, TRADEMARK, OR INTELLECTUAL PROPERTY OF A MERCHANT IN VIOLATION OF THIS ACT; TO PROVIDE PENALTIES RELATING TO THIRD-PARTY DELIVERY SERVICES THAT USE THE NAME, LIKENESS, TRADEMARK, OR INTELLECTUAL PROPERTY OF A MERCHANT IN VIOLATION OF THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. As used in this act, the following words and phrases have the following meanings, unless the context clearly indicates otherwise:

(a) "Agreement" means a written contractual agreement between the merchant and the third-party delivery service.

(b) "Consumer" means a person, business, or other entity that places an order for merchant products through the third-party delivery platform.

(c) "Likeness" means the logo, motto, or any identifiable symbols attributed and easily identified as belonging to a specific merchant.

(d) "Merchant" means a restaurant or other retail entity.

(e) "Third-party delivery platform" means the online communication platform of the third-party delivery service on which a consumer can view and search the menus of merchants and place an order for merchant products through internet-enabled technology and digital media, including websites and consumer applications accessible through smart phones and other mobile devices.

(f) "Third-party delivery service" means a company, organization, or other entity, other than a merchant, that is licensed to do business in this state and provides limited delivery services to a consumer.

SECTION 2. (1) In the absence of an agreement, a third-party delivery service shall not advertise, promote, or otherwise convey any relationship with a merchant or use the name, likeness, trademark, or intellectual property belonging to a merchant on the third-party delivery platform.

(2) An agreement executed in accordance with this act shall not include a provision, clause, or covenant that requires a merchant to indemnify a third-party delivery service, any independent contractor acting on behalf of the third-party delivery service, or any registered agent of the third-party delivery service, for any damages or harm that may occur after the merchant product leaves the place of business of the merchant.

(3) A merchant whose name, likeness, trademark, or intellectual property is used by a third-party delivery service in violation of this chapter shall have the right to bring an action in a court of competent jurisdiction.

(4) Upon a finding by a court of competent jurisdiction that a third-party delivery service used the name, likeness, trademark, or intellectual property of a merchant in violation of this act, the court may impose a civil penalty in an amount not to exceed five thousand dollars ($5,000.00), or the amount of the merchant's actual damages, whichever is greater. The court may, in its discretion, award attorney fees to the prevailing party.

SECTION 3. This act shall take effect and be in force from and after July 1, 2023.