"Signed into law by Governor Gavin Newsom in October 2025, Assembly Bill 578 requires food delivery platforms to refund customers' money directly for incorrect or uncompleted deliveries, rather than offering in-app credits in lieu of a cash refund. Introduced by California State Assemblymember Rebecca Bauer-Kahan, AB 578 was aimed at strengthening California's existing Fair Food Delivery Act of 2020, which was spurred by the COVID-19 pandemic's detrimental effects on the restaurant industry."
"Food delivery platforms like Uber Eats and DoorDash are fast and easy to use, even if they usually cost more than ordering directly from the restaurant and picking up the order yourself. Although convenient, human error is still a large factor in the success of these sometimes-controversial food delivery platforms, and orders can often go wrong or arrive incomplete and missing items."
Assembly Bill 578, effective January 1, 2026 and signed by Governor Gavin Newsom in October 2025, mandates that food delivery platforms provide full cash refunds for incorrect or uncompleted deliveries, including taxes, commissions, fees, and gratuities. The bill prevents refunded gratuities from being clawed back from delivery drivers and requires platforms to offer access to a "natural person" via customer service when automated chatbots cannot quickly resolve issues. The measure, introduced by Assemblymember Rebecca Bauer-Kahan, strengthens the Fair Food Delivery Act of 2020, increases transparency around delivery compensation, and replaces the common practice of issuing in-app credits instead of direct refunds.
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