On January 1, California established its Food Delivery Platforms Assembly Bill to ensure that customer service disclosures are plainly outlined.
The Assembly Bill, AB 578, aims to address nationwide consumer complaints, with California-based delivery companies such as DoorDash, Uber Eats, and Postmates now dominating the US food delivery market.
In a series of CX-related laws released in the new year at state level, these will allow customers access to clearer transparency in operational practices.
Acting as an update to the Fair Food Delivery Act, this assembly bill expects to further enhance customer service standards for food delivery platforms across the state.
Previously, customers have reported unfair customer experiences in food delivery services, often not receiving adequate help trying to resolve issues created by the company rather than the consumer.
Firstly, customers had been allegedly receiving in-app credits for late, missing, or incorrect deliveries, rather than the companies choosing to refund the order.
Furthermore, customers have reported experiencing these credits expiring after a certain period, and seeing limited choices on where to spend these credits. And when trying to contact support systems for resolutions, customers reported experiencing automation services that would frequently fail to provide valuable help.
Customers have also experienced unfair pricing, with food delivery systems allegedly withholding hidden or unclear costs from customers, misleading them about the accurate prices of their services.
This new bill aims to expand the previously established Fair Food Delivery Act 2020, a state law that focused on pricing and tipping with restaurants, leaving significant gaps in the delivery service sector.
Approved by California Governor Gavin Newsom in October, AB 578 rules that food delivery platforms must now operate in accordance with California’s new customer, restaurant, and delivery workers’ policies.
Customers: Food delivery platforms are now expected to handle customer issues more effectively, including providing full refunds to the original payment method if the customer is not at fault for the problem. Platforms can only deny refunds if they can provide evidence of the customer’s wrongdoing. During customer support, platforms are now expected to offer human customer support if an automated system cannot fulfill a request.
Restaurants: Platforms must now offer clear information around pricing, fees, and order handling to both restaurants and consumers, ensuring that responsibility for incorrect orders and order statuses can be distinguished. This will reduce both restaurant and consumer confusion, disputes, and financial uncertainty throughout the customer journey.
Delivery Workers: Having raised several concerns around the pay structure, delivery workers have been set new pay transparency rules. After each delivery, delivery workers should receive a breakdown of their earnings, including base pay, tips, and any additional bonuses. Platforms may not use tips to reduce the base pay, and must present earnings information clearly to show how their pay is calculated to reduce compensation confusion.
These changes limit platform discretion, ensuring that everyone involved in the customer journey understands the minimum expectations across the food delivery market. This aims to reduce conflict between these three groups and allow for clearer communication when needed to resolve these issues.
How Does This Improve Customer Experience Standards?
By instilling AB 578 into California’s customer services, the CX space becomes clearer on the standards it expects, ensuring full transparency around food delivery platforms.
