Judge rules NYC food delivery data law unconstitutional

Delivery companies in NYC argued that sharing customer data threatened privacy and harmed their business.
The court decision in New York found the law violated First Amendment rights by improperly regulating commercial speech.

A federal judge has ruled that New York City’s law requiring food delivery companies to share customer data with restaurants is unconstitutional. The decision, handed down by US District Judge Analisa Torres, found the law violated the First Amendment by regulating commercial speech inappropriately.

The law, introduced in 2021 to support local restaurants recovering from the COVID-19 pandemic, required delivery platforms like DoorDash and UberEats to share customer details. Delivery companies in US argued that the law threatened both customer privacy and their business by allowing restaurants to use the data for their own marketing purposes.

Judge Torres stated that New York City failed to prove the law was necessary and suggested alternative methods to support restaurants, such as letting customers opt-in to share their data or providing financial incentives. City officials are reviewing the ruling, while delivery companies hailed it as a victory for data protection.

The New York City Hospitality Alliance expressed disappointment, claiming the ruling hurts small businesses and calling for the city to appeal the decision.