It’s official. Food delivery apps operating in the Golden State would have to issue full refunds in cash, note the cash form, no credits. The new law is in full swing. Here’s the news story.
Cheers to this new California law
The implementation of the new regulation started last January 1st, requiring food delivery apps like Uber Eats and DoorDash, alongside others, to release full cash refunds, rather than in-app credits, whenever customers miss orders, or they order incorrectly. The goal of this law is to address long-standing customer complaints about partial reimbursements and limited customer service choices.
This sprang from consumers and consumer advocates criticizing food delivery apps for relying on app credits instead of the traditional cash refunds. But, isn’t it that the trend today is upon cashless or digital payments? Why would California then go back to the beginning?
Well, the critics are saying that cashless and digital payments expire, are limiting to customer choice, and pressure users to keep using a similar service despite the negative experiences. Supporters of the new regulation are delighted it came in full effect.
The bill is Assembly Bill 578, which mandates that food delivery platforms refund the full amount of orders, including taxes and tips, in cash, or the customer’s original payment method, when the delivery isn’t completed as desired. The partial refunds must be issued, too, but with lenient rules.
This law also champions integrity and customer service requirements. Delivery platforms are required to provide customers with itemized breakdowns of each transaction and offer access to a live human chat agent.
The bill also addresses fraud, allowing firms to investigate suspicious refund requests while still complying with the consumer protection standards of the law. You can access Ridesharing Forum’s previous report on the preview to the new regulation
Farewell to unfair business practices
This new law is a follow-through of the California’s Fair Food Delivery Act of 2020, which advocates against unfair business practices.
Controversial governor Gavin Newsom signed this into law last October with a push to strengthen consumer protections in the Golden State, or the state of California.
He pointed out that California is very diligent to help make lives more affordable, so these new laws reflect the state as a state “that protects workers, respects students, puts people before politics, and isn’t afraid to hold powerful interests accountable.”
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