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New York Cracks Down on Restaurant Reservation Resellers
In a move that aims to protect local restaurants and guests, New York lawmakers have announced the Restaurant Reservation Anti-Piracy Act. This legislation, which took effect in February 2025, mandates third-party food service reservation apps to obtain permission from food service establishments before they can market or sell reservations on their behalf [2][3].
Third-party reservation platforms face direct repercussions, as they are now prohibited from listing, advertising, promoting, or selling reservations without consent. This regulation is intended to combat reservation fraud, which often involves bots snatching seats for resale, as well as encouraging transparency between restaurants and guests [4].
Some key players in the industry have expressed support for similar legislation, highlighting the need for a fairer reservation system to combat unauthorized sales and reduce no-shows caused by unauthorized resales [1]. The act is part of a broader trend, with other states like Florida, California, and Illinois also considering or implementing similar regulations in response to the growing issue of reservation fraud [3][4].
Notable companies like Resy and Tock have voiced support for the New York legislation, illustrating the industry's call for action. The legislation's purpose is clear and straightforward: "Require online third-party food service reservation apps to obtain consent from a food service establishment prior to such app marketing or making a seating reservation at such food service establishment" [3].
This act comes after incidents similar to those experienced with third-party delivery platforms, when they added restaurants to their marketplace without permission or consent from the venues. Some platforms would create URLs containing the names of restaurant brands, further complicating the situation [5].
Despite facing criticism for causing increased cancellations and no-shows, third-party reservation platforms argue that they provide convenience and speed for guests. Nonetheless, restaurants maintain that having control over their reservations is crucial in ensuring a smooth dining experience [6].
The enforcement of the New York Restaurant Reservation Anti-Piracy Act is expected to strengthen fairness and transparency in the restaurant industry, paving the way for a more collaborative future between restaurants and reservation platforms.
[1] "Resy CEO Collaborates With Lawmakers To Build National Solutions For Reservation Fraud," Forbes, [2] "New York State Senate Bill S7814A," New York State Senate, [3] "The Restaurant Reservation Anti-Piracy Act," The National Restaurant Association, [4] "Florida Senate Bill 952," Florida Senate, [5] "The Impact of Third-Party Delivery Platforms on Restaurants and Guests," Branded Hospitality Ventures, [6] "Reservations: A Growing Challenge for Restaurants," Restaurant Business, [Accessed 27 July 2023].
- The New York Restaurant Reservation Anti-Piracy Act is a legislative move to protect local restaurants and guests, aiming to combat reservation fraud.
- Third-party food service reservation apps are now required to obtain permission from food service establishments before marketing or selling reservations.
- The legislation is not just local, with other states like Florida, California, and Illinois considering or implementing similar regulations.
- Key players in the hospitality technology industry, such as Resy and Tock, have voiced support for the New York legislation.
- The act is part of a broader trend in investing in education-and-self-development, lifestyle, business, general-news, sports, and entertainment sectors to create a fairer reservation system.
- Despite argument from third-party reservation platforms about providing convenience and speed for guests, restaurants maintain control over their reservations is crucial for a smooth dining experience.
- The enforcement of the act is expected to strengthen fairness and transparency in the restaurant tech industry, paving the way for a more collaborative future between restaurants and reservation platforms.
