California AB 578: What Restaurants Need to Know
California Assembly Bill 578 changes how delivery platforms handle refund requests. For restaurants that lose money on disputed orders, this law creates new leverage - if you have proof.
What the Law Says
AB 578 requires delivery platforms to refund customers only when:
"...the food delivery platform determines that the customer was responsible for the nondelivery or finds evidence indicating the refund request may be fraudulent."
In plain language: platforms can no longer issue automatic refunds without reviewing evidence first.
What This Changes
| Before AB 578 | After AB 578 |
|---|---|
| Customer claims "didn't receive" - automatic refund | Platform must check for evidence of fraud or customer fault |
| Restaurant denial means nothing without proof | Evidence gives restaurants legal standing |
| Platforms default to customer | Platforms have legal pressure to review claims |
The law doesn't guarantee restaurants win disputes. But it requires platforms to actually look at evidence before siding with the customer.
Why This Matters for Restaurants
Right now, a two-word claim like "didn't receive" can cost you the order, the commission, and an error charge. A $25 order can become a -$1.79 payout.
Platforms side with customers by default because it's faster. There's no requirement to investigate.
AB 578 changes the calculus. Platforms now face legal risk if they refund without reviewing evidence. That means your proof actually matters.
But only if you have it.
How to Prepare
The restaurants that benefit from AB 578 will be the ones with documentation ready when disputes come in.
- Timestamped video of order contents before bagging
- Photo of sealed bag at handoff
- Order details matched to the recording
- Records that can't be edited after the fact
- Your word against the customer's
- Screenshots that could be edited
- Memories of what you packed
The law creates the opening. Proof walks through it.
How BagProof Helps
BagProof is a mobile app that helps restaurants document every delivery order in 15 seconds.
- Open the app on any phone
- Record video of items before bagging
- Photo the sealed bag
- Everything merges into one timestamped record
When a dispute comes in, you pull the proof link and send it to the platform. No hours in chat. No begging. Just evidence.
AB 578 gives platforms a reason to look at your proof. BagProof gives you proof worth looking at.
Get Ready Before January 2026
BagProof is currently in early access. Join the waitlist to be ready when the law takes effect.
Join the WaitlistRead the Full Bill
For the complete legal text, see the official California Legislative Information page:
AB 578 Full Text