Legal Overview of Food Delivery Platforms in European E-commerce
Author: Sonja Cekic
Image Source: istockphoto
Food delivery platforms have become an integral part of the modern economy, especially in the wake of global lockdowns and restaurant closures. These platforms have revolutionized the way people access restaurant food, bringing it directly to their front doors. However, the exponential growth of the food delivery economy has also attracted regulatory scrutiny, particularly in terms of the employment status of delivery riders and food safety regulations. In this article, we will provide a legal overview of food delivery platforms in European e-commerce, exploring the challenges they face and the potential regulatory actions that may impact their operations.
The Status of Delivery Riders
One of the key legal concerns surrounding food delivery platforms is the employment status of their delivery riders. In the United Kingdom, the Supreme Court ruled that a group of Uber drivers were considered workers, entitling them to basic employment rights such as minimum wage, pensions, holiday pay, and protection against discrimination. This decision has significant implications for other gig economy workers, including food delivery riders, who are awaiting clarification on their employment status.
While Uber has taken steps to extend worker protections to its drivers, other food delivery platforms such as Deliveroo and Just Eat have yet to follow suit. The lack of worker protections, particularly sick pay, is a significant concern for food delivery riders who face the risks of road accidents during their work. Platform companies may be compelled to provide sick pay for work-related injuries in response to increasing pressure from riders and legal developments.
Furthermore, the issue of employment status is not limited to the UK. Across Europe, there is a growing battle for the recognition of employment rights for gig workers. Italian riders have gone on strike, leading Italian courts to fine four platforms and demand the direct employment of thousands of riders. As courts increasingly protect the rights of gig workers, it is expected that employment legislation will be developed in various European countries, providing more clarity on the employment status of food delivery riders working for platforms.
Food Safety Regulations
In addition to the employment status of riders, food delivery platforms also face challenges related to food safety regulations. The rise of “dark kitchens” and delivery-only restaurants has highlighted the importance of food safety laws. One specific concern is the handling of allergens, as customers now have limited contact with the companies preparing their food, increasing the risk of errors.
While there has been a focus on allergen information on food packaging, this requirement does not currently extend to advertisements on third-party platforms. Customers ordering food from these platforms are not legally obligated to provide allergen information. Instead, many platforms shift the responsibility to the restaurants and advise customers with allergies to contact the restaurant directly. However, as the law evolves, it is expected that platforms will face regulatory requirements to provide allergen information and ensure compliance with food safety standards.
In the UK, food businesses are required to register with the Food Standards Agency (FSA) as Food Business Operators (FBOs). FBOs have various obligations, including providing essential pre-sale information to customers, ensuring food safety and hygiene, and withdrawing unsafe food from sale if necessary. However, it is unclear whether food delivery platforms fall under these requirements. The FSA has suggested that platforms should be treated as FBOs, but the classification of riders as employees or independent contractors plays a crucial role in determining the platform’s obligations.
Regulatory Measures and Voluntary Actions
While compliance gaps and regulatory uncertainty persist, food delivery platforms have taken voluntary actions to address some of the legal concerns. Many platforms have implemented measures such as ensuring partner restaurants are registered with the FSA, displaying official food hygiene ratings, removing low-rated restaurants from their platforms, and allowing customers to filter restaurants by hygiene rating. Some platforms have also established food hygiene and safety policies with their partner restaurants, providing information about their hygiene measures.
These voluntary actions have received praise from regulatory bodies such as the FSA and the Chartered Institute of Environmental Health. However, as regulations catch up with evolving business models, it is likely that some or all of these actions will become mandatory for food delivery platforms. Compliance with food hygiene standards and the provision of allergen information are expected to be key regulatory requirements in the future.
The Future of Food Delivery Platform Regulation
The fight for workers’ rights in the gig economy is expected to gain momentum, with strategic litigation playing a crucial role in driving change. Some food delivery platforms have set aside significant funds to defend legal battles related to workers’ rights. However, regulatory measures may soon be introduced to address these concerns. In the United Kingdom, an employment bill is expected to be published, providing further clarity on the employment status of gig workers. Additionally, the European Commission is working on a Directive that will regulate platform work across all EU member states.
The power of social movements and the increasing legal protection of gig workers have the potential to shape the future of food delivery platform regulation. The industry is likely to face tighter scrutiny, greater accountability, and enhanced protection for workers and consumers. As compliance gaps are addressed and regulations evolve, food delivery platforms will need to adapt their operations to ensure legal compliance and maintain consumer trust.
Conclusion
Food delivery platforms in European e-commerce face significant legal challenges, particularly regarding the employment status of delivery riders and food safety regulations. The recent ruling on worker status for gig economy workers in the UK has sparked debates and potential changes in employment legislation. Additionally, the application of food safety regulations to platform-initiated food supply chains raises concerns about compliance gaps and the need for greater accountability.
While some food delivery platforms have taken voluntary actions to address these legal concerns, regulatory measures are expected to be introduced to ensure consistent compliance across the industry. The future of food delivery platform regulation will likely involve clearer guidelines on the employment status of riders, mandatory provision of allergen information, and stricter adherence to food hygiene standards.
As the legal landscape evolves, food delivery platforms will need to adapt their operations, engage in strategic litigation, and comply with emerging regulations to maintain their market position and reputation. The power of social movements and the drive for worker rights are likely to shape the future of the industry, making it crucial for platforms to prioritize legal compliance and consumer trust.