USA | New York has become the first US state to pass legislation in order to protect online restaurant reservations.
The New York State Legislature has passed the Restaurant Reservation Anti-Piracy Act and has become the first state in the nation to pass legislation intending to combat the trend of predatory software flooding the online restaurant reservation marketplace. Now, the bill awaits Governor Hochul's signature to become state law.
"Today is a major victory for the hospitality industry in New York, setting a precedent for the nation. Our members work hard each day to create a desirable dining experience. Now, when diners do have the ability to dine out, they will no longer have to compete with predatory bots capturing reservations and reselling them at exorbitant prices. And restaurants will no longer be left with empty seats from unauthorised third-party reserved tables," said Melissa Fleischut, President and CEO of the New York State Restaurant Association.
"This legislation supports restaurants, diners and the legitimate apps uplifting the hospitality industry. We hope the Restaurant Reservation Anti-Piracy Act inspires other states to push back against bad actors taking advantage of restaurants' hard work and consumers. Thank you, Assemblymember Bores and State Senator Fernandez, for championing this issue swiftly through the legislature and delivering for restaurants across New York State."
There has been a drastic increase in predatory software flooding the online restaurant reservation marketplace, forcing some consumers to turn to an unauthorised market that takes advantage of restaurants. The Restaurant Reservation Anti-Piracy Act aims to address this rapidly growing problem by requiring third-party online reservation platforms to enter into a written agreement with restaurants before being able to list reservations on their website, mobile application or other platform. This legislation is the first of its kind in the nation to be passed at the state level.
State Senator Nathalia Fernandez said the rampant exploitation of online restaurant reservations by predatory third-party platforms has inflicted undue hardships on consumers and small businesses for long enough.
"Between charging exorbitant rates for a reservation, to double-booking reservations, to phantom reservations leaving diners with less options and restaurants with empty tables—the onus is on us in the Legislature to take action. The essence of this legislation is simple: empower business owners and restaurantgoers alike. Through this bill, we are taking a stand against these detrimental practices and promoting fairness in the restaurant reservation marketplace. I'm happy to stand alongside Assemblymember Bores and the New York State Restaurant Association to pass this piece of legislation," said Fernandez.
Debby Soo, CEO of OpenTable, said the passage of this bill was a meaningful one for restaurants and will help protect their bottom lines by reducing the 'no shows' caused by fraudulent reservations.
"We are pleased to see New York take a strong stance to support its restaurants."
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