City takes bite out of delivery issues

Shanghai will require companies that offer food ordering and delivery through online platforms to sign a contract committing to unified standards of service.

The commitment, drawn up by the Shanghai food market watchdog, requires vendors to display their latest food operating license and prepare food safely. The watchdog will keep a copy of the signed agreements to hold members to account, according to the draft of the Shanghai Food Safety Law and Regulations that was recently submitted to the municipal legislative body for discussion.

"It will be the first time that the rapidly developing online food ordering market has been brought under control through legislation in Shanghai," said Gu Zhenhua, deputy director of the Shanghai Municipal Food and Drug Administration. "All the vendors must register with their real name with the platforms and the platforms need to verify the qualifications of the vendors."

Gu said those who do not cooperate or who fail to live up to expectations will face consequences.

"Once a platform finds a vendor has violated the terms, it must suspend cooperation with the vendor and report the incident to the watchdog. Otherwise, the platform will also be held accountable."

Food ordering and delivery apps have been booming in recent years. Statistics from Analysys International, a Beijing-based internet consultancy company, show the country's online food ordering and delivery transactions were worth more than 45 billion yuan ($7 billion) in 2015, which was three times higher than in the previous year. The largest players — Ele.me, Meituan Takeout, and Baidu Takeout — are backed respectively by the country's internet leaders Alibaba, Tencent Holdings Ltd and Baidu Inc.

Meanwhile, complaints are rising. Statistics from the Shanghai Consumer Rights Protection Council show that, in the first half of last year, 200 complaints were received about the sector, which was a year-on-year increase of 138 percent. The complaints mainly centered on problematic food quality, delayed delivery and false advertising.

Liu Jiaxiu, a deputy to the municipal legislative body, said the sector is sorely in need of more control.

"There's so much to do with online food ordering and delivery," Liu said. "A law was unveiled in 2011 but the sector has experienced major strides since and nearly 90 percent of the terms in the law are in need of revision."

Under the draft, sellers without qualified cold-chain logistics networks will be banned from delivering cold dishes, uncooked food, pastries, cakes, and sushi that require cold storage.

The local food market watchdog earlier this year established a team specializing in overseeing online food ordering and delivery platforms and the vendors that sell food through the platforms. More than 33,000 unlicensed active vendors were driven out of the online market.

Ele.me, which offers online food ordering and delivery in more than 30 cities nationwide, said it has already launched offline verification for all the vendors that have joined the platform.

"We promise to assist consumers in safeguarding their rights," said Liu Yaliang, a public relations officer with Ele.me. "In the near future, we plan to unveil a compensation policy in which we'll compensate consumers first, before the vendor verifies the problem reported by the consumer took place, in case consumers encounter food safety problems when making a purchase on our platform."

Distinctive rules in food safety laws in different provinces and municipalities

1 Yunnan

Highly toxic farm chemicals are prohibited from being sold and used in tea plantations, scenic spots, nature reserves, wildlife habitats and other key areas specified by the provincial government.

2 Chongqing

Those who hold family banquets in rural regions must report information, including the time of the meal, number of participants, condition of the venue, list of the dishes, and the chef's health status to the village government at least two days ahead of the banquet. The organizer of the banquet must then keep a sample of each dish in a refrigerator for at least 48 hours after the event.

3 Zhejiang

Small workshops are prohibited from manufacturing food products, including dairy products, canned food, jelly, and those designed for special groups, such as infants, young children, the elderly and pregnant women.