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

by Mike Robinson

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© Reuters. FILE PHOTO – A DoorDash sign was pictured in a New York City restaurant on December 9, 2020, the day that they held their IPO. REUTERS/Carlo Allegri/File Photo

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Jonathan Stempel

NEW YORK (Reuters] – New York City has decided to stop requiring delivery companies to share customers’ data with restaurants. The matter of a recent suit by DoorDash Inc. The city filed a joint file Monday with the U.S. District Court of Manhattan, stating that it would not enforce the new law which requires disclosures during the litigation. DoorDashwithdrew their request for an interim injunction to prevent enforcement.

DoorDash sued San Francisco on September 15, claiming that the requirement that delivery companies give customers names, addresses, and phone numbers to food service apps was an “invasive and shocking intrusion” into consumer privacy.

San Francisco-based firm also stated that restaurants would be able to use the law without having to pay for data from customers.

New York City tried to assist restaurants who had previously refused food delivery apps fees up to 30% but became increasingly dependent upon delivery due the closure of dining rooms or reduced capacity, and increased consumption at home.

DoorDash (NYSE:) Eats and its rivals Grubhub Inc. sued the city Sept. 9, over a law that limits delivery fees for restaurants.

According to them, law has cost them hundreds and millions of dollars in revenues.

DoorDash Inc. v. City of New York. 21-07695

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