Chapter 379
2021 -- S 0788
Enacted 07/13/2021

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

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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