New law forces food delivery apps to give full refunds in this 1 state. Is nationwide change coming next?

While this law doesn’t apply nationwide, California’s move could have ripple effects, pressuring delivery apps to rethink refund policies across the country and encouraging other states to follow suit.

How California’s new food delivery law works

Starting January 1, 2026, if an order from a food delivery app, such as Uber Eats, DoorDash or Grubhub, is incorrect, never shows up or is only partially filled, people in California are entitled to receive a refund to their original payment method rather than in-app credit.

Named Assembly Bill 578, this new law also requires all food delivery apps operating in California to:

• Provide a transparent, itemized breakdown of prices and fees for customers and delivery workers
• Prohibit using tips or gratuities to offset the base pay of drivers
• Ensure customers can connect with a real human customer service agent when automated systems fail to address their concerns (1)

Currently, most major delivery apps route refund requests through automated in-app forms or chatbots. These systems often cap the number of refunds a customer can request and make it extremely difficult to speak with a real person, even when an order clearly goes wrong.

The implications of required refunds

These changes help protect people’s rights during a time when the cost-of-living crisis is really starting to bite and affect millions of households.

This is no longer a niche issue. Food delivery has shifted from an occasional convenience to a regular expense for many Americans. Yet when something goes wrong, customers are often offered credits that can expire or pressure them to keep using the same service after a negative experience. Combined with the difficulty of speaking to a real person, many people end up paying the price for mistakes they didn’t make.

Democratic Assemblywoman Rebecca Bauer-Kahan, who authored the legislation, said the idea stemmed from personal experience. During a committee hearing last year, Bauer-Kahan recalled ordering 12 pizzas for her child’s party and only receiving one of them (2).