Bill
H 4070
Platforms must clearly show whether a listed MA eatery is independent, a chain, a franchisee, or operates a ghost kitchen at the time of online ordering.
Date introduced: May 1, 2025
Status and timetable
- Current status: Hearing scheduled/adjusted for September 10, 2025, in Committee on Public Health (B-2) and virtually; end time updated.
- Legislative actions:
- 2025-05-01: Referred to the Public Health Committee.
- 2025-05-05: Senate concurred pending statewide process.
- Related bill: HD 3827 (replaces)
Overview
H.4070 would add a new provision to Chapter 94 of the Massachusetts General Laws to increase transparency in online food delivery by requiring third-party delivery platforms to disclose certain information about the establishments they list. The focus is on whether a covered restaurant or eating establishment is an independent business, part of a chain, a franchise, or operates a ghost kitchen, with additional disclosures when a ghost kitchen is tied to a franchisee or chain or when an independent uses a shared kitchen.
Key provisions and definitions
- New statutory section: Insertion of Section 305F into Chapter 94.
- Definitions (key terms to know):
- Covered establishment: a restaurant or other eating/drinking establishment offering same-day food or drinks for sale in a single transaction through any third-party platform.
- Chain restaurant: 4 or more restaurant or eating/drinking locations.
- Independent business: not owned/licensed/franchised by any other corporate entity and not part of a restaurant chain.
- Franchisee: a covered establishment under a contractual agreement to use a trade name, service mark, or related characteristic of another entity.
- Ghost kitchen: food preparation facilities not owned or leased solely by the covered establishment, used to produce food for solely same-day delivery or pickup.
- Online order: customer order placed via a third-party delivery platform for pickup or delivery in Massachusetts.
- Third-party delivery service company: an entity with 20+ separately owned and operated covered establishments in MA.
- Third-party delivery service platform: the online app/website/system used to facilitate sale and same-day delivery/pickup from covered establishments.
- Disclosure requirements on platforms:
- Platforms must display conspicuously on the user interface information indicating whether a covered establishment is independent, a chain restaurant, a franchisee, or operating a ghost kitchen.
- The disclosure may use words or symbols as long as they are easily understood by customers.
- Ghost kitchen disclosures:
- If a franchisee or chain restaurant operates a ghost kitchen, the platform must disclose the identity of the corporate parent entity.
- Independent kitchen disclosures:
- If an independent business uses a kitchen not solely owned or leased by itself, the platform must disclose that the kitchen is owned/operated by another entity.
Impact and implications
- Consumer transparency: Customers would be able to see, at the point of order, whether a listed establishment is independent, part of a chain, a franchise, or operating a ghost kitchen, and the corporate parent when relevant.
- Platform obligations: Third-party platforms would incur design/UX changes to prominently display these disclosures; potential ongoing compliance and monitoring requirements.
- Business impact: Franchisees, chains, independent operators, and ghost kitchens may experience branding and information changes on major platforms, potentially affecting consumer perception and ordering choices.
- Enforcement and scope: The provisions apply to platforms that serve 20+ covered establishments in Massachusetts and cater to same-day delivery/pickup, with a focus on online orders.
Notes
- The bill is framed as a public health/public transparency measure, aligning delivery transparency with consumer information standards.
- The text establishes precise definitions to distinguish between independent operators, chains, franchisees, and ghost kitchens, and to ensure accountability for parent entities in the case of ghost kitchens.
Compiled from official sources — confirm details with the bill’s official record.
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