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HD 4004

An Act relative to third party delivery fees

194th Legislature (2025-2026) Introduced by Danny Ryan

Massachusetts bill to regulate third-party food delivery platform commission fees, capping charges to restaurants to improve their financial viability while potentially affecting service availability and consumer costs.

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WeVote Research Nonpartisan
Bill Summary · HD 4004

Legislative bill overview

HD 4004 aims to regulate fees charged by third-party food delivery platforms (such as DoorDash, Uber Eats, and Grubhub) in Massachusetts. The bill would likely impose caps on commission rates or require transparency in fee structures that delivery companies charge to restaurants. This addresses concerns that high delivery fees—sometimes 15-30% of order value—are unsustainable for restaurant operators.

Why is this important

Restaurants, particularly small and independent operators, have faced significant financial pressure from delivery platform commissions, especially during periods when dine-in service was restricted. High fees can force restaurants to raise menu prices, reduce quality, or exit delivery services entirely, affecting consumer choice and restaurant viability. The regulation could rebalance the economics between platforms, restaurants, and consumers.

Potential points of contention

  • Platform viability concerns: Delivery companies argue that commission rates fund driver pay, insurance, technology, and customer acquisition; caps could reduce service availability or driver compensation in less profitable areas
  • Business model clash: Platforms operate on razor-thin margins in competitive markets; fee restrictions might trigger service withdrawals from certain regions or restaurant types
  • Consumer impact uncertainty: While lower restaurant costs could mean lower prices, platforms might shift costs to consumers through higher delivery fees or service charges instead
  • Interstate commerce questions: Massachusetts-only regulations could create compliance complexity if delivery platforms operate across state lines with different rules

Compiled from official sources — confirm details with the bill’s official record.

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