financetom
Business
financetom
/
Business
/
Judge declares NYC law on sharing food delivery customers' data unconstitutional
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Judge declares NYC law on sharing food delivery customers' data unconstitutional
Oct 3, 2024 1:20 AM

NEW YORK (Reuters) -A federal judge on Tuesday declared unconstitutional a New York City law requiring food delivery companies to share customer data with restaurants.

U.S. District Judge Analisa Torres in Manhattan ruled in favor of DoorDash, Grubhub and Uber Eats, saying the law violated the First Amendment by improperly regulating commercial speech.

New York City adopted the law in the summer of 2021, one of multiple measures to help its thousands of restaurants recover from the COVID-19 pandemic.

Delivery companies were required to provide restaurants with customers' names, delivery addresses, email addresses and phone numbers, as well as order contents.

Though the city said the requirements protected restaurants from delivery companies' "exploitive practices," it agreed not to enforce the law while the companies sued.

The companies argued that the law violated the privacy rights of customers and threatened their data security.

They also said it harmed their own businesses because restaurants could use the data for marketing and "poach customers away."

Nicholas Paolucci, a spokesman for the city's law department, said: "We are carefully reviewing the court's ruling."

Torres said the city did not demonstrate it had a substantial interest in helping restaurants collect customer data from the delivery companies, and said it had less intrusive means to achieve that goal.

She said these means included letting customers decide whether to share data, offering financial incentives for the companies to share data, and subsidizing online ordering platforms for individual restaurants.

DoorDash said the decision "rightly recognized how this law would have violated bedrock First Amendment rights of how we protect New Yorkers' data," while Grubhub said it "reinforces the privacy protections that New Yorkers deserve."

UberEats and its lawyers did not respond to requests for comment.

The law had drawn support from the New York City Hospitality Alliance, a restaurant and nightlife industry trade group.

Its executive director Andrew Rigie said Torres' decision "hurts small businesses and consumers. We urge the city to appeal."

The cases in the U.S. District Court, Southern District of New York, are DoorDash Inc v. City of New York, No. 21-07695; Portier LLC v, City of New York, No. 21-10347, and Grubhub Inc v. City of New York, No. 21-10602.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Once India's biggest startup, Byju's faces insolvency proceedings
Once India's biggest startup, Byju's faces insolvency proceedings
Jul 16, 2024
BENGALURU/NEW DELHI (Reuters) -Edtech company Byju's, once India's biggest startup valued at $22 billion, will face insolvency proceedings for failure to pay $19 million in dues to the country's cricket board, a tribunal said on Tuesday. Byju's has suffered numerous setbacks in recent years, including boardroom exits and a tussle with investors who accused CEO Byju Raveendran of corporate governance lapses, job cuts...
Exclusive-PwC weighs halving of China financial services audit staff, say sources
Exclusive-PwC weighs halving of China financial services audit staff, say sources
Jul 16, 2024
(This July 16 story has been corrected to fix the revenue year to 2022, not last year, in paragraph 16) By Julie Zhu HONG KONG (Reuters) - PricewaterhouseCoopers (PwC) is considering slashing up to half its financial services auditing staff in China, two people with knowledge of the matter said, as a regulatory investigation and an exodus of clients darken...
Pernod Ricard to sell bulk of wine portfolio to Accolade Wine owners
Pernod Ricard to sell bulk of wine portfolio to Accolade Wine owners
Jul 16, 2024
LONDON (Reuters) -Pernod Ricard said on Wednesday it agreed to sell the majority of its wine portfolio to the owners of Australia's Accolade Wines, disposing of a dragging division to focus on its core business of spirits. The world's No.2 Western spirits maker plans to sell its wine brands from Australia, New Zealand and Spain, including well-known labels like Jacobs...
EXPLAINER-How India's Byju's went from startup star to facing insolvency
EXPLAINER-How India's Byju's went from startup star to facing insolvency
Jul 16, 2024
BENGALURU/MUMBAI, July 16 (Reuters) - Indian edtech company Byju's was staring at insolvency proceedings on Tuesday following a tribunal order, deepening a crisis that has seen the one-time market darling's valuation plunge from about $22 billion to less than $2 billion. Here is an overview of Byju's and its troubles: WHAT TRIGGERED THE INSOLVENCY? The Indian cricket board last year...
Copyright 2023-2026 - www.financetom.com All Rights Reserved