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I hadn’t heard of that. I do know the US passed a law allowing restaurants to donate unused food at the end of the day without fear of lawsuits.
https://www.usda.gov/media/blog/2020/08/13/good-samaritan-act-provides-liability-protection-food-donations
Also there’s a new app where restaurants can sell food at the end of the day at a discount rather than throwing it away called “too good to go”.
I’m lucky to live in a southern city where we have citywide composting as well. I wish more places would do that. It’s a waste to simply landfill food scraps when you could funnel it all to the farming industry as fertilizer.
That's great (re the citywide composting)! Companies cite fear of a lawsuit as an excuse not to donate food. Of course the reality is that they're just protecting profits, no one has ever been sued from donating food as far as I know, and as you mention there is a law specifically prohibiting doing so.
I've heard of many places where it's illegal to give food out to people.
Where I live there is no composting, the city barely recycles even.