DoorDash Challenges NYC Law Requiring Sharing of Consumer Information with Restaurants

DoorDash, Inc., a popular food delivery service, has challenged a New York City law that requires food delivery app services, such as DoorDash and UberEats, to share the personal information of customers that have used their delivery app services after they complete orders.

DoorDash Challenges NYC Law Against Sharing Personal Customer Information

Despite what many consumers and privacy advocates may believe, most food service apps have privacy policies that protect the privacy of consumers when they use the apps.  Typically, the apps do not share the customers’ personal information with the restaurants they order from, without charging fees, even though they are using the app as a middleman to order.

Food delivery services apps have argued that complying with the law is burdensome and that the law will cripple their bottom line because restaurants will lose the incentive to advertise and partner with such apps. Currently, the law requires food delivery apps to pass along customer information to the restaurants, when requested, on a monthly basis.

Restaurants For NYC Law Want Consumer Information from Food Delivery Apps

In response to the challenge by DoorDash of the NYC law, restaurants have argued that COVID-19 has severely impacted the industry and such sharing could allow restaurants to rebound. Similarly, restaurants have argued that access to customers’ personal information will allow them to directly market to customers that are already ordering their food.  

As such, restaurants have claimed that the New York City law actually benefits customers, especially as it allows customers to opt-out from marketing, a routine that most consumers are arguably used to by now.

DoorDash Wins Injunction Against NYC Law

In the end, while the court determines the validity of DoorDash’s arguments, the law will still go into effect in December for the other food delivery service apps.  In the meantime, DoorDash has successfully won an injunction that prohibits New York City from requiring DoorDash to share its customer information restaurants based on arguments that its lists qualify as trade secrets and that the New York City law is unconstitutional.

Key Takeaways On DoorDash’s Challenge of NYC Law Requiring Sharing of Consumer Information

Restaurants and food delivery service apps are at war in New York City over a law that requires such apps share customers’ personal information with restaurants, when requested, on a monthly basis because:

• Food delivery apps typically charge fees for the sharing of such information;

• Food delivery apps typically have privacy policies that protect the privacy of its customers; and

• Restaurants have argued that customers can simply opt-out of such marketing lists.

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