Proposed Updates to Chicago's Retailer and Food Vendor Rules
The Department of Business and Consumer Affairs (BACP) has published proposed updates to the City of Chicago's Retailer Rules. The Department has also introduced certain rules for food vendors.
BACP is accepting public comments until February 26, 2024, regarding the proposed updates for Retailer Rules and introduced rules for food vendors. Please click here to learn how to make public comments or ask questions.
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Here is a consolidated list of proposed rules that the SBAC considers important for small businesses. However, please note that this is not an exhaustive list. For a comprehensive view, refer to both the Proposed Updates for Retailer Rules and the Proposed Rules for Food Vendors.
SBAC City of Chicago - Food & Retail Vendor Updates:
Definitions
- Added a 5th item to the section, Consumer commodities do not include ”prepared food and beverages (including liquor), intended for human consumption and which prepared at or consumed at a “restaurant” as defined in these rules.”
- Defines “food vendor” as any establishment required to be licensed whose sales of prepared food to order, or alcohol sold by the drink, or a combination of both comprise at least 90% of the establishment’s annual sales. This includes restaurants, bars/taverns, catering, and mobile food trucks.
- Defines “sale items” as merchandise sold for less than regular price.
- Defines “Sales dates” as the beginning and ending dates of any sales advertisement.
- Defines “Service fee” and “surcharge” as fees charged to pay for services related to the purchase of prepared food and beverages at a food vendor. The charge is typically added at the time of the transaction and covers services rendered to a consumer or administrative and/or processing costs of the food vendor.
Section I. APS – Certification
Rule 1 – Application for Certification
- Under A) added, “Each application must include samples of all the following: the establishment’s sales signs, shelf tags, receipts, return policies, check, debit card, and credit card policies, and media advertisements.”
Rule 9 – APS Certification Application Inspection Fees
- Fee amounts have been omitted. It is unclear if inspections are still subject to fees, and at what cost.
Section II APS – Pricing
Rule 13 – Receipt Requirements
- Adds “The receipt can be offered via paper or electronic methods. Examples of acceptable electronic delivery methods are email, text message, or smartphone applications.
Rule 15 – Shelf Labels
- Changes (A) from a label being required for all items offered for sale to “Unless an exception applies, all items offered for sale placed on a shelf must have a shelf label.”
Adds to Rule 15a: Acceptable shelf labeling includes the use of an “electronic screen” to display items for sale.
- Adds Rule 15d: Allows APS establishments offering non-consumer commodity merchandise (unpackaged fresh produce, very small and inexpensive items, prepared food, and prepared beverages) behind a counter to display a list of products and their prices in lieu of individual shelf tag labels. The sign must be clearly and legibly hand-printed, typewritten, computer-generated, or displayed on an electronic screen and include the name of the item and its selling price.
Rule 16 – Non-Shelved Item Signage
- A non-shelved, end cap, or other type of display sign is no longer excluded from shelf label and unit price requirements.
Section III APS – Inspection Procedures
21 – Inspections Pursuant to Application for Certification or Renewal of Certification
- Adds a new rule by adding a new letter, (B). (B) states, “An establishment must apply to the Commissioner by letter requesting that it be designated a specialty establishment under these rules and in that request must submit documentation sufficient to establish that the establishment’s annual sales of consumer commodities are 10% less of its annual sales.
Designation as a specialty establishment exempts a retail establishment from Rule 5 only.”
Section IV APS - Revocation of Certification; Other Actions
Section V – Non-APS Retailers
Rule 32 – Cash Registers and other non-APS devices
- Adds a new rule that allows for a receipt to be offered physically [paper] or electronically [through e-mail, text message, or smartphone application].
Section VII – BPA Rules
- Changed section title to exclude “(Bisphenol A)” and “regulations.”
Definitions
- Changed to exclude terms “BPA” (Bisphenol A) and “Child Container” and their respective
- Changed language to “BPA” free to include Section 7-28-637(a) of the Municipal Code of Chicago, which defines items that do not include Bisphenol A in their composition.
Rule 44 – Signage
- In (A) Changed to replace term “Child Container” with “Containers” and include Sectionv7-28-637(a) of the Municipal Code of Chicago.
- In i., changed to replace term “Child Container” with “Containers.”
- In ii., changed to replace term “Child Container” with “Containers.”
Section X – Penalties
Rule 50 – Penalties
- Changed to include “Chapters” to enhance concision and clarity.
Section XI – Fees for Inspecting and Sealing
Rule 51 – Fees *Rule 52 in previous version
- Fee for inspecting and sealing scales of a capacity of 6,000 pounds up to 24,000 pounds, each, has decreased from $25.00 to $15.00.
- Fee for inspecting and sealing scales of a capacity of 2,500 pounds up to 6,000 pounds, each, has decreased from $25.00 to $10.00.
- Fee for inspecting and sealing scales of a capacity up to 2,500 pounds, each, have decreased from$25.00 to $5.00.
- Fee for inspecting and sealing hopper scales of the capacity of 0 to 500 pounds, each, has increased from $0.00 to $6.00.
- Fee for inspecting and sealing hopper scales of the capacity of 501 pounds to 2,000 pounds, each, has increased from $0.00 to $14.00.
- Fee for inspecting and sealing hopper scales of the capacity of 2,001 to 10,000 pounds, each, has increased from $0.00 to $34.00.
- Fee for inspecting and sealing hopper scales of the capacity of 10,001 pounds and upwards, each, has increased from $0.00 to $75.00.
- Fee for inspecting and sealing two-bushel, one-bushel, and half-bushel measures, each, has increased from $0.00 to $1.50.
- Fee for inspecting and sealing any other dry measure, each, has increased from $0.00 to $1.50.
- Fee for inspecting and sealing every automatic weighing machine or other similar device of a capacity of less than three tons, used for weighing, each, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing liquids measures of a capacity up to and including five gallons, each, has increased from $0.00 to $2.00.
- Fee for inspecting and sealing liquids measures of a capacity over five gallons, for each five-gallon capacity or part thereof, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing any automatic machines used for measuring liquids, each unit, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing yard measures, each, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing any linear measure, for each three feet, has increased from $0.00to $2.00.
- Fee for inspecting and sealing any tape line exceeding 50 feet in length, has increased from$0.00 to $5.00.
- Fee for inspecting and sealing any automatic machine used for lineal measuring, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing any automatic pump used for measuring gasoline, oils, etc., each, has decreased from $41.00 to $7.00.
- Fee for measuring a quantity of coal or wood and issuing a certificate of approximate measure or weight of same has increased from $0.00 to $14.00.
- Fee for inspecting and sealing gasoline and fuel oil tank trucks, wagons, or trailers of a capacity of 1,000 gallons or less, has increased from $0.00 to $34.00.
- Fee for inspecting and sealing gasoline and fuel tank trucks, wagons, or trailers of a capacity of over 1,000 gallons, for each 500-gallon capacity or part thereof, has increased from $0.00 to $34.00.
- Fee for inspecting and sealing any meter used for measuring gasoline, oils, etc., each, has decreased from $41.00 to $34.00.
- Excluded previously mentioned re-inspection fee of $100.00 [per site], which would be charged in addition to above fees [per device] if any inspected or tested device is condemned or rejected.
Rule 52 – Calculation of Fees *Rule 53 in previous version
- Changed to clarify that Section 4-276-020(b) is a part of the Municipal Code of Chicago.
Section XII – Food Vendor Requirements *Added
Rule 53 – Disclosure of Food Vendor Prices, Service Fees, and Surcharges
- Added that item prices, service fees, and surcharges including credit card fees, split order or bill charge and large group charges must be clearly displayed at the beginning of a customer’s ordering or sales process. Service fees and surcharges must be displayed on all menus, including online menus, restaurant signage, mobile apps and payment.
Rule 54 – Intended use of Food Vendor Services Fees and Surcharges
- Added that wherever service fees and surcharges are listed, their intended use must also be listed and described. Food vendors must explain service fees, surcharges, and their purpose at the request of a consumer. Food vendors must indicate what percentage if any of a service fee or surcharge is a mandatory versus optional charge. Food vendors must indicate what percentage of any service fee or surcharge will be paid to employees in general or specifically waitstaff.
Rule 55 – Food Vendor Receipt Requirements
- Added that a food vendor must always give a customer a receipt. However, the food vendor may offer the customer the option to elect to receive a paper receipt, an electronic receipt, or no receipt at customer's request.
Rule 56 – Food Vendor Price Marking
- Added to include exemptions on food vendor price-marking, instead requiring that “to-go "sections and non-consumer commodity merchandise vendors offer clear and legible signage. Underlines use of hand printed, typewritten, computer-generated, or electronically displayed posting. At minimum, it must include the name of the item and selling price.