NEW YORK, NY\u2014 City officials announced a settlement exceeding $875,000 with HungryPanda to resolve violations of New York City\u2019s Third-Party Food Delivery Service Laws.<\/p>\n
The investigation found HungryPanda, a food delivery app, violated the city\u2019s Fee Cap Law, charging immigrant-owned restaurants thousands of dollars in illegal fees.<\/p>\n
It marks the first time DCWP has enforced the law against a delivery app company for harming business owners.<\/p>\n
“This settlement returns money to the businesses that were overcharged and makes clear that New York City will enforce the law to protect small business owners,” Mayor Zohran Mamdani said.<\/p>\n
HungryPanda, used predominantly in Asian immigrant communities, will pay more than $580,000 in restitution to over 380 restaurants citywide, along with more than $294,000 in civil penalties and fees. DCWP found the company bundled multiple fees, relabeled them frequently, and mischaracterized overcharges as \u201cpromotion deductions.\u201d<\/p>\n
HungryPanda did not respond to a request for comment prior to publication.<\/p>\n
\u201cWe are putting a warning to all delivery apps that we will not be defrauded, we will catch you, and we will make sure that you pay,” Council Member Shahana Hanif said. “Accountability in the city is front and center, and anyone trying to hurt our small businesses, our workers, will be in trouble.\u201d<\/p>\n
Under the settlement, HungryPanda must comply with the Fee Cap Law, provide clear fee disclosures, implement internal compliance training, and submit annual certifications attesting to compliance.<\/p>\n
The law caps fees at 15 percent for delivery services, 5 percent for basic services, 20 percent for enhanced services if a basic service is offered at or below 5 percent, and 3 percent for electronic payment processing with limited exceptions.<\/p>\n
Earlier this year, HungryPanda joined a $5 million settlement with Uber Eats and Fantuan to provide restitution and penalties for over 49,000 delivery workers for violating the city\u2019s Minimum Pay Rate.<\/p>\n
The case was handled by DCWP staff counsel under senior agency supervision.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK, NY\u2014 City officials announced a settlement exceeding $875,000 with HungryPanda to resolve violations of New York…\n","protected":false},"author":2,"featured_media":189866,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[9,24,55,54,56],"class_list":{"0":"post-189865","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york-city","8":"tag-new-york","9":"tag-new-york-city","10":"tag-new-york-city-headlines","11":"tag-new-york-city-news","12":"tag-ny"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/189865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=189865"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/189865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/189866"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=189865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=189865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=189865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}