California is continuing its push into consumer experience (CX) regulation, introducing a new law designed to heighten transparency and service recovery standards within the food delivery sector.
The legislation targets major players such as DoorDash and Uber Eats, requiring a fundamental shift in how these platforms handle service failures. Most notably, the law mandates that platforms provide full cash refunds to the original payment method rather than issuing partial app credits—a common pain point in the digital customer journey.
The bill, Assembly Bill 578, represents a significant victory for consumers navigating the frustrations of missing or incorrect orders. While partial refunds remain the standard for partially fulfilled orders, the law ensures that when a full refund is warranted, it includes the return of tips and taxes.
Prioritizing the Human Touch in CX
Beyond financial restitution, AB 578 places a heavy emphasis on the “human-in-the-loop” philosophy. Under the new requirements, delivery platforms must:
- Provide a clear, itemized cost breakdown for every transaction.
- Offer a direct pathway for customers to speak with a human customer service representative.
The mandate for human intervention is specifically triggered when a customer’s needs cannot be resolved through automated systems or AI chatbots, ensuring that complex service issues are escalated to live agents. To balance these consumer protections, the bill also includes safeguards to protect platforms against fraudulent refund requests.
A Legislative Response to Bad CX
The measure was authored by Democratic state Assemblywoman Rebecca Bauer-Kahan. The inspiration for the bill reportedly stemmed from a disappointing customer experience involving an order of 12 pizzas for her daughter’s bat mitzvah, which prompted her to seek legislative solutions for industry-wide transparency issues.
This new law builds upon the foundation laid by the Fair Food Delivery Act of 2020, which previously introduced restrictions on delivery platforms to curb unfair business practices.
Governor Gavin Newsom, who signed AB 578 into law in October, framed the move as part of a broader strategy to protect consumer interests and reduce hidden costs in the service economy.
California is hard at work to help make your life more affordable.
Governor Gavin Newsom
Delivery platforms will need to audit their CX workflows and contact center protocols to ensure compliance with these new transparency and human-access mandates.