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Actually it’s possible that if people are swapping food and not selling it, then that would be fine. But I also see that they allow people to charge for their items. For most items that would definitely be illegal. If you sold your sushi on there and got caught by the health dept, then you would be guilty. But yes, if this app became big enough, someone would probably shut them down.

I looked at their site a little more and see that they also want their platform to be used by professional chefs and food businesses, in which case it would be legal. But they have a FAQ on there that’s very misleading, where they say you don’t need to use a commercial kitchen. I think they know it’s illegal but they’re avoiding that reality for now, much like StubHub ignored the fact that ticket scalping was illegal.

I saw your Twitter post and I should point out that Santa Clara county is by far the least friendly to cottage food operations in CA. Since they don’t like legal CFOs, I can only imagine what they’d think of illegal businesses. Most counties would give you a warning but they’d probably give you a fine.

Thanks for your fast answer David. I’ve also talked with them via direct message on twitter and i think they know it’s illegal but doesn’t accept the truth for now as you sad. Should i warn them or contact with health dept about this app ?

He launched the app only 3 weeks ago, and at this point, I don’t think the health dept will care. I considered emailing him but it looks like he knows what he’s doing.

My friend and I started a very similar business for the cottage food industry (but a legal one), and since then I’ve been in touch with a number of entrepreneurs that have tried tackling this industry with an online marketplace. Suffice it to say that all of them have had virtually no growth. Quite frankly, it’s very very unlikely that this business will take off and if it does, then kudos to him.