DoorDash sues New York City over new data sharing law

DoorDash sues New York City over new data sharing law

DoorDash filed a lawsuit against New York City on Wednesday over a new law that requires delivery companies to share more customer data with their restaurants.

City council approved a bill earlier this summer that would require delivery companies to share customer data, such as names, phone numbers, emails, and delivery addresses, with restaurants filling orders, unless a client withdraws. Do not do it

The law is due to come into force in December.

DoorDash vehemently rejected the bill, calling it unconstitutional and invading the privacy of New York residents. The company argued in the lawsuit that “there are no restrictions on what restaurants can actually do with this data,” nor guidelines on data protection.

“In an era of growing concerns about data privacy and identity theft, this forced disclosure is a shocking and aggressive intrusion on consumer privacy,” DoorDash said in the complaint.

The company also argued that restaurants could use their trade secrets to compete directly with DoorDash. According to the lawsuit, this would require the company to “change its services in a way that results in fewer resources available to restaurants, less income opportunities for delivery people and fewer options for New Town customers. York “. Will be.”

Some restaurants have tapped app-based delivery companies, such as DoorDash, Grubhub, and Uber Eats, to share more customer data so their reliance on the platform isn’t as strong. Restaurants can market directly to customers and they won’t have to feel locked in to use a service.

Wednesday’s trial is the latest in a string of complaints between food delivery platforms and regulators. Last week, DoorDash, Grubhub and Uber Eats sued New York over a bill that would make the emergency delivery fee cap established during the pandemic permanent.

The companies say the law is unconstitutional because “it interferes with freely negotiated contracts between platforms and restaurants by changing and setting the economic conditions under which a vibrant industry operates.”

Likewise, DoorDash and Grubhub are suing San Francisco, which also introduced a permanent 15% cap on delivery charges.

The New York mayor’s office did not immediately respond to a request for comment.

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