NYC will not enforce restaurant customer data-sharing law while DoorDash sues

DoorDash app-based delivery

New York City agreed to hold off on requiring food delivery companies to share customer data with restaurants, the subject of a recent lawsuit by DoorDash Inc.

In a joint filing with the US District Court in Manhattan, the city said it will not enforce a new law requiring the disclosures while the lawsuit is pending, and DoorDash withdrew its request for an injunction to block enforcement.

DoorDash sued the city on September the 15th, calling a requirement that food delivery app companies provide customers’ names, phone numbers, email addresses and delivery addresses to restaurants a “shocking and invasive intrusion of consumers’ privacy.”

The San Francisco-based company also said the law would let restaurants “free-ride” on data they would not demand from in-person diners.

Since the COVID-19 pandemic began, New York City has tried to help restaurants that had resisted food delivery app fees as high as 30%, but which became more dependent on delivery as dining rooms closed or limited capacity and people ate at home.

In a separate case, DoorDash and rivals Grubhub Inc and Uber Eats sued the city on September the 9th over a law capping fees that delivery companies charge restaurants.

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They said that law has cost them hundreds of millions of dollars in revenue.

The case is DoorDash Inc v City of New York, US District Court, Southern District of New York, No. 21-07695.

The team at Platform Executive hope you have enjoyed the ‘NYC will not enforce restaurant customer data-sharing law while DoorDash sues‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Jonathan Stempel in New York. Additional reporting by Sara Merken. Editing by Bill Berkrot.

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