Councilwoman Nirva LaFortune (Ward 3) will introduce an ordinance that calls for more transparency and better business practices by third-party food delivery services in the City of Providence at tonight’s City Council meeting. Additionally, she will introduce a series of resolutions asking the Governor and State officials to ensure the protection of Rhode Islanders during the current COVID-19 crisis.

The resolutions she is introducing request that State agencies ensure that Rhode Islanders, regardless of immigration status, have equitable access to relief funds; requests that the state provides adequate sanitary housing options for the homeless and those that are housing insecure; and requests that the Governor provides the residents of Rhode Island with an update on the state’s fiscal health and the recovery measures planned to address the looming financial Crisis this pandemic has caused.

“This Crisis has imposed significant challenges on our community, which will take time to recover,” stated Councilwoman Nirva LaFortune. “The impact is even more profound on residents, families, business owners with limited resources or safety nets, the homeless, immigrant residents, including those who are undocumented and other marginalized communities.”

The COVID-19 Pandemic has caused a massive disruption to our state and local economy, unlike anything since the Great Depression. The ordinance that Councilwoman LaFortune will introduce calls on third-party delivery services to be more transparent in their fees and billing structures for consumers, as well as for the restaurants and bars they service. This ordinance intends to protect the City of Providence’s local hospitality industry by providing a level of oversight in how third-party delivery services operate within the city.

Third-party delivery services will be required to:

• Disclose any commission, fee, or other monetary payment imposed by the third-party delivery service on local restaurants or bars before any final transaction occurs. If a local food establishment chooses, they may decline to disclose to customers the commission charged by a third-party delivery service.
• It shall be unlawful for third-party food delivery services to charge local restaurants or bars a fee per online order for the use of their services that totals more than 10% of the purchase price of the online order.
• Third-party delivery services are prohibited from charging a commission that originates from a telephone order that does not result in an actual transaction between the local restaurant or bar and a customer during the call, or that exceeds the established commission rate between the third-party delivery service and the local restaurant and bar.
• If a third-party delivery service violates the above, they can be punished by a fine of not less than one dollar ($1.00) nor more than five hundred dollars ($500.00) or by imprisonment of not less than one day nor more than thirty (30) days.

The ordinance requires two passages by the Council; it then would be sent to the Mayor for his signature or veto before it can take effect.

As a state and city with a large population of immigrants who are in various stages of the process to become naturalized United States citizens, Councilwoman LaFortune wants to ensure that vulnerable members of our community are not forgotten during this critical time.

Councilwoman LaFortune continued, “It is our responsibility to provide protections for all Rhode Islanders. It is also crucial that we understand, prepare for, and respond to the impact this pandemic will have on our economy moving forward.”

Individuals who are homeless or housing insecure are at higher risk of contracting the COVID-19 virus. Councilwoman LaFortune is working to ensure that every Rhode Islander, regardless of their housing status, has access to protection and care if they need it.

Councilwoman LaFortune also seeks to ensure that the public has an understanding of the potential impacts the COVID-19 pandemic will have on our state’s economic outlook.

Upon passage, the resolutions will be submitted to the Governor’s Office.