NYC's COVID-Era Food Delivery Data Law Ruled Unconstitutional

NYC's Food Delivery Data Law Declared Unconstitutional

A New York City law requiring food delivery companies to share customer data with restaurants has been declared unconstitutional by a federal judge. The law, passed during the COVID-19 pandemic, was intended to help restaurants recover from the economic downturn. However, a federal judge ruled on Tuesday that it violated the First Amendment by improperly regulating commercial speech.

The ruling is a victory for Uber Eats, Grubhub, and DoorDash, the three major food delivery companies that filed the lawsuit. They argued that the law was exploitative, threatening their customers' privacy and data security. Additionally, they claimed that the law harmed their business, allowing restaurants to use the data for marketing and to "poach customers away."

The law required food delivery companies to provide restaurants with customers’ names, delivery addresses, contact information, and order contents. While the law was not enforced during the litigation, the judge determined that the city never demonstrated a substantial interest in helping restaurants collect the data from the delivery companies. The judge noted that there were less intrusive ways to help, like giving customers the option to share their data or offering financial incentives for the delivery companies to share their data.

The ruling has been met with mixed reactions. The New York City Hospitality Alliance, a non-profit representing restaurants and nightlife establishments, strongly supports the law and is advocating for an appeal. They believe the decision "hurts small businesses and consumers." Doordash, on the other hand, celebrated the ruling, stating that it “rightly recognized how this law would have violated bedrock First Amendment rights of how we protect New Yorkers’ data.”

The city's Law Department is currently reviewing the ruling.