MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Business and Financial Institutions

By: Senator(s) McMahan

Senate Bill 2218

(As Sent to Governor)

AN ACT TO PROVIDE DEFINITIONS RELATING TO THIRD-PARTY DELIVERY SERVICES THAT ADVERTISE, PROMOTE OR CONVEY ANY RELATIONSHIP WITH A RESTAURANT OR USE THE MENU, LOGO OR INTELLECTUAL PROPERTY BELONGING TO A RESTAURANT ON THE THIRD-PARTY DELIVERY PLATFORM; TO PROHIBIT THIRD-PARTY DELIVERY SERVICES FROM USING THE MENU, LOGO OR ANY INTELLECTUAL PROPERTY OF A RESTAURANT 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 MENU, LOGO OR INTELLECTUAL PROPERTY OF A RESTAURANT IN VIOLATION OF THIS ACT; TO PROVIDE PENALTIES RELATING TO THIRD-PARTY DELIVERY SERVICES THAT USE THE MENU, LOGO OR INTELLECTUAL PROPERTY OF A RESTAURANT 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 restaurant, the restaurant owner and the third-party delivery service.

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

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

          (d)  "Restaurant" means and includes a restaurant or entity with a food permit as listed with the Mississippi Department of Health.

          (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 restaurants and place an order for restaurant products through internet-enabled technology and digital media, including websites and consumer applications accessible through smartphones and other mobile devices.

          (f)  "Third-party delivery service" means a company, organization or other entity, other than a restaurant, 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 restaurant and restaurant owner, or use the menu, logo or intellectual property belonging to a restaurant and restaurant owner on the third-party delivery platform.

     (2)  A restaurant whose menu, logo or intellectual property is used by a third-party delivery service in violation of this act shall have the right to bring an action in a court of competent jurisdiction.

     (3)  Upon a finding by a court of competent jurisdiction that a third-party delivery service used the menu, logo or intellectual property of a restaurant and restaurant owner in violation of this act, the court may impose a civil penalty in an amount not to exceed Two Thousand Five Hundred Dollars ($2,500.00), or the amount of the restaurant's actual damages, whichever is greater.

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