New York Passes Law to Combat Illegal Restaurant Reservations
Background
ALBANY, N.Y. (NEXSTAR) — Gov. Kathy Hochul signed a bill on December 19 targeting the illegal resale of restaurant reservations in New York. The law will take effect 60 days after signing, around February 17.
The Problem
S9365A/A10215 aims to give restaurants relief from reservation fraud and to give New Yorkers a fairer dining system, Hochul said. It bans third-party platforms from arranging reservations without explicit permission, protecting diners and small businesses from scams. Fines cost as much as $1,000 per unauthorized listing, increasing daily for repeat offenders.
The Impact
The Restaurant Reservation Anti-Piracy Act identifies a growing problem where third-party platforms—a "leech industry" according to the bill’s sponsor, Democratic Assemblymember Alex Bores—use bots to reserve tables and resell them at inflated prices. The law makes those platforms sign written agreements with restaurants to keep the system fair and limit scalping.
The Solution
Restaurants and customers alike frequently get burned by last-minute cancellations or no-shows from phantom bookings. Staff lost tips and hours, owners couldn’t buy or prep the right volume of food, and diners were turned away from popular spots with limited seating but empty tables.
Industry Reaction
This first-in-the-nation law mirrors state and city efforts to regulate food delivery apps in 2021. "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," said Melissa Fleischut, President of the New York State Restaurant Association.
Conclusion
The new law aims to give restaurants and customers a fairer dining system by banning third-party platforms from arranging reservations without explicit permission. With fines increasing daily for repeat offenders, this law is expected to bring relief to small businesses and diners alike.
Frequently Asked Questions
Q: What is the purpose of the Restaurant Reservation Anti-Piracy Act?
A: The law aims to give restaurants relief from reservation fraud and to give New Yorkers a fairer dining system.
Q: What are the fines for unauthorized listing of restaurant reservations?
A: Fines cost as much as $1,000 per unauthorized listing, increasing daily for repeat offenders.
Q: What is the expected impact of the law?
A: The law aims to bring relief to small businesses and diners alike by limiting scalping and phantom bookings.
Q: Will this law inspire other states to regulate food delivery apps?
A: Yes, the law mirrors state and city efforts to regulate food delivery apps in 2021 and is expected to inspire other states to take similar action.
