The law also bars delivery companies from using customer tips to offset drivers’ base pay, requiring tips to go directly to workers.
SACRAMENTO, Calif. — A new California law could put money back in the pockets of people who order food through delivery apps starting Jan 1.
Assembly Bill 578 focuses on platforms such as DoorDash and Uber Eats. Under the new law, if an order is missing, incorrect, or never arrives, customers must receive a full refund to their original payment method rather than credits. The law also requires companies to provide a way for customers to speak with a human customer service representative when requesting a refund.
Sacramento resident Amir Coleman, Jr. said the change is welcome.
“I think it is very beneficial for us,” Coleman said.
Jonathan Aguilar, another Sacramento resident, said refunds should be straightforward.
“I believe, in general, you should just get your money back instead of credit from the company,” Aguilar said.
Not everyone sees the law as a dramatic shift.
“Once we start using it and feeling our options, we will probably have better understanding of how it works,” said Sacramento resident Vicky Macias.
The bill’s author, Assembly Member Rebecca Bauer-Kahan, D-Orinda, said the idea stemmed from her own experience. During an Assembly Privacy and Consumer Protection committee hearing last March, she described ordering pizzas for her daughter’s bat mitzvah and paying for 12 pizzas, but receiving only one.
Bauer-Kahan said the financial impact of delayed refunds can be significant.
“It was $220 they owed me,” Bauer-Kahan said during the committee. “People are making it month-to-month right now. If you are keeping my $220 and not let me have that back, that could make a huge difference for someone.”
She said the law includes safeguards to protect against potential fraud, while still ensuring customers are not penalized for being infrequent users of delivery apps.
Some supporters point to the impact on students and others on tight budgets. Sacramento resident Emily Chacon said getting money back instead of credits matters.
“Getting your cash back and inserting that into something more valuable. I feel like that is perfect as a student,” Chacon said.
Others worry about unintended consequences. Sacramento resident Remick Diprosper said he supports the law but hopes it is not abused.
“I just hope people don’t abuse it because then that means the delivery prices are just going to get higher,” Diprosper said.
The law also bars delivery companies from using customer tips to offset drivers’ base pay, requiring tips to go directly to workers.