Mamdani Administration Acts to Protect Immigrant Restaurant Owners From Delivery App Junk Fees

April 8, 2026

Watch the video here at https://www.youtube.com/watch?v=NlLQqdhJC0A

Mayor Mamdani, Commissioner Levine Secure Restitution for More Than 380 NYC Businesses Overcharged by HungryPanda

NEW YORK — Today, Mayor Zohran Kwame Mamdani, Deputy Mayor for Economic Justice Julie Su and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine announced a settlement of more than $875,000 with HungryPanda to resolve violations of the City's Third-Party Food Delivery Service Laws.

The investigation found HungryPanda violated New York City’s Fee Cap Law, in some cases charging immigrant-owned restaurants thousands of dollars in illegal junk fees. The action marks the first time DCWP has enforced the law against a delivery app company for harming business owners.

“Too many neighborhood restaurants are already navigating high costs and razor-thin margins,” said Mayor Mamdani. “They should not also have to contend with hidden, illegal fees from the apps they rely on to reach customers. 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.”

“HungryPanda counted on these restaurant owners being too small and too busy to fight back,” said Deputy Mayor for Economic Justice Julie Su. “They were wrong. This settlement puts money back in the pockets of hundreds of immigrant-owned businesses, and it's a clear message to every platform in this city: we are watching the fine print.”

“Restaurants are the heart of every New York City neighborhood, bringing people together, keeping us fed and creating a thriving economy,” said DCWP Commissioner Sam Levine. “The Fee Cap Law was enacted to protect these small businesses from predatory fees that make operating in New York City difficult. This settlement lets it be known that DCWP will not allow HungryPanda, or any other delivery app for that matter, to rip off consumers, workers, or small businesses.”

“New York City’s small restaurants—many of them immigrant-owned—define our neighborhoods and fuel our local economy. When delivery apps break the law and siphon off hard-earned revenue through illegal fees, it’s not just unfair—it undermines these businesses and the communities they serve. I commend Mayor Zohran Mamdani and Commissioner Samuel A.A. Levine for stepping in, enforcing the law and delivering real relief to hundreds of small businesses,” said Assembly Member Robert Carroll. “This enforcement action sends a clear message: New York will stand up for small businesses, enforce the law and work to build a local economy that works for all. I’m proud to stand with this administration and DCWP as we continue fighting to protect restaurants, workers and consumers across our city. Today we made it a little easier for everyone’s favorite neighborhood restaurant to stay in business.”

“It is incumbent on all of us in government to support those small businesses and protect them. And these large corporations are taking advantage of small businesses,” said Council Member Harvey Epstein. “I really applaud the effort of the DCWP team to bring this case, the fight that we're doing over junk fees across our city sends a clear message that if you take advantage of small businesses, you will be held accountable.”

“We 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,” said Council Member Shahana Hanif. “That accountability in the city is front and center, and anyone trying to hurt our small businesses, our workers, will be in trouble.”

HungryPanda, a third-party delivery platform used predominantly in New York’s Asian immigrant communities, will pay more than $580,000 in restitution to more than 380 restaurants citywide, along with more than $294,000 in civil penalties and fees.

DCWP found the company used a range of tactics to impose unlawful charges, including bundling multiple fees into a single line item, frequently relabeling fees and mischaracterizing illegal overcharges as “promotion deductions.”

Under the settlement, HungryPanda must comply with the Fee Cap Law, provide clear fee disclosures to restaurants, implement internal compliance policies and training and submit annual certifications attesting to compliance.

DCWP enforces New York City’s Third-Party Food Delivery Service Laws, which cap fees charged by delivery apps and protect restaurant owners. The caps are:

15% for delivery services
5% for basic services, including order processing and platform listing 20% for enhanced services (only if a basic service is offered at or below 5%)
3% for electronic payment processing (with limited exceptions if higher costs are documented)

Earlier this year, HungryPanda was part of a $5 million settlement alongside Uber Eats and Fantuan that secured restitution, penalties and damages for more than 49,000 delivery workers for violations of the City’s Minimum Pay Rate.

This case was handled by Staff Counsel Kyle Fowler, Staff Counsel Michael Hotz, under the supervision of Associate General Counsel James Sugarman, Deputy General Counsel Melissa Iachán, and General Counsel Michael Tiger.

“Food delivery from neighborhood restaurants has become a staple for New York consumers and businesses alike. But it must be done lawfully and fairly,” said Counsel to the NYC Hospitability Alliance Robert Bookman. “Sky high or hidden fees that violate the law cannot be tolerated as they only add cost to consumers and reduce the already thin profit margin for restaurants. We commend the Mayor and the Department for pursuing violators and upholding an important law.”

The NYC Department of Consumer and Worker Protection (DCWP) is the nation’s leading municipal enforcement agency charged with delivering economic justice. DCWP leverages its authority to bring New Yorkers real economic relief and protect them from predatory, deceptive, and unfair practices that violate their rights as consumers and workers. This includes pioneering cutting-edge protections, such as the City’s Consumer Protection Law, Protected Time Off Law, Fair Workweek Law, and Delivery Worker Laws, including the Minimum Pay Rate for delivery workers. Through licensing more than 45,000 businesses in over 45 industries, DCWP ensures fair competition and a level playing field for responsible small businesses that are integral to New York City’s vibrant communities. DCWP also provides essential services such as free tax preparation and financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures. DCWP is committed to making sure New York City is a fairer, more affordable place to live. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp, sign up for its newsletter, or follow on its social media sites, X, Facebook, Instagram, and YouTube.

Media Contact:
Department of Consumer and Worker Protection
press@dcwp.nyc.gov
(212) 436-0042