You know that sinking feeling when your DoorDash order never shows up, and the app offers you a $30 credit that expires in three months instead of actual cash? That racket officially ends January 1, 2026, when AB 578 forces delivery platforms to refund real money to your original payment method. Governor Gavin Newsom signed the legislation in October, expanding California’s Fair Food Delivery Act to eliminate one of the industry’s most customer-hostile practices.
No more trapped credits. No more “store value” that disappears if you don’t order frequently enough. This addresses the core frustration that has plagued California’s delivery users—platforms keeping customer money for services they never delivered.
Full Refunds Mean Full Refunds
Platforms must return everything you paid, including taxes and tips.
The law covers the complete transaction when orders go wrong. Undelivered food, incorrect orders, or restaurant cancellations trigger mandatory refunds of the base cost plus all taxes, fees, commissions, and gratuities back to your credit card or bank account. For partial deliveries, you only pay for what actually arrived.
Delivery drivers get protection too. Platforms can’t deduct refunded tips from driver pay—a practice that essentially made customers subsidize corporate refund policies. The law also requires itemized pay breakdowns showing base wages separate from tips and bonuses, bringing transparency to an industry notorious for opaque compensation structures and tipping culture.
Actual Humans, Not Just Bots
Customer service must include real people when automation fails.
Ever been stuck in a chatbot hell loop trying to resolve a delivery disaster? AB 578 mandates that platforms provide access to “natural persons” when automated systems can’t handle your problem promptly. No more algorithmic runarounds designed to exhaust your patience until you give up and accept those worthless credits.
The legislation affects all major players:
- Uber Eats
- DoorDash
- Postmates
- Grubhub
This forces them to abandon the credit-trap model that kept customer money locked in their ecosystems like casino chips you can’t cash out. Authored by Assemblymember Rebecca Bauer-Kahan, the bill builds on California’s existing 2020 Fair Food Delivery Act, strengthening consumer protections in response to widespread complaints about platform practices.
This mirrors broader platform accountability trends, with California leading regulatory pushback against Silicon Valley’s customer-hostile practices. Other states are watching closely, potentially setting up a domino effect of consumer-friendly delivery laws nationwide.
Your next missing burrito order will actually cost the platform real money instead of funny-money credits. That’s the kind of accountability that changes behavior fast.
