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DoorDash sues New York City over law that requires it to share customer data with restaurants

Food delivery company DoorDash has filed yet another lawsuit against New York City, calling a new law forcing delivery companies to share customer data with restaurants “a shocking and invasive intrusion of consumer privacy.” .

Under the law approved in July, third-party food delivery services in the city are expected to share customer names, phone numbers, emails, and delivery addresses with a restaurant that fulfills a DoorDash order, unless the client does not withdraw. In its complaint, DoorDash argues that customers entrust DoorDash with sensitive data, “which they would not entrust to small businesses that do not have a similar robust security and data security protocol.”

The company added that in-person diners generally don’t expect to disclose sensitive personal information to restaurants. “In addition, the presumption of the ordinance according to which each customer consents to share their personal data, unless they specifically opt out by order, goes against the best practices in force in matters of confidentiality”, indicates the trial. And there is no guarantee that restaurants would be able to store customer data in a way that both complies with privacy laws and prevents unauthorized access, DoorDash argues.

New York City Councilor Keith Powers introduced the bill earlier this year. “After such a devastating year for our city’s restaurant industry, this precedent-setting law is giving restaurants much-needed relief to restaurants to have better access to customer data and provide strong life protections. private, “Powers wrote in an email to The edge. “Restaurants are the lifeblood of New York’s economy and culture, and I’m proud that city council has supported our local establishments and our New York diners. I encourage DoorDash to drop this lawsuit immediately.

The Electronic Frontier Foundation (EFF) wrote in a July letter to New York City Council that it “sympathizes[d] with the aim of establishing a more level playing field for all businesses, especially after the year we have all been faced with, ”but opposed the measure:“ confidentiality should be the top priority. default value of any transaction, and consumers should be asked to register for sharing their information whenever it might be transferred to a new entity.

In addition, the EFF said, the ordinance “establishes a ripe target for hackers and data thieves who want to exploit [the customers’] information.

Restaurants that relied on deliveries to stay open during last year’s pandemic have fallen out with online delivery platforms like DoorDash over some of their business practices. A pizza restaurant owner who bought his own inventory from DoorDash at a profit last year highlighted how delivery companies seemed willing to waste money on deliveries to add more restaurants to their ecosystems. DoorDash rival Grubhub has been caught creating websites that masquerade as restaurants and lists restaurants on its platform without their knowledge or permission.

Last week, DoorDash, Grubhub and Uber Eats filed a lawsuit against New York City over another new law that caps the amount of fees delivery companies can collect from restaurants. The city temporarily capped delivery costs last June, limiting the delivery platform to a maximum of 23% per order, which breaks down into 15% for delivery, 5% for the restaurant’s listing on its app and 3% for credit. card processing fee. The platforms, however, have been accused of adding other unclear charges on top of their delivery charges.

In the lawsuit it filed on Wednesday, DoorDash is seeking an injunction against the application of the new customer data rule, unspecified damages and a jury trial. The law is currently expected to come into force in December, barring any legal action.

Update September 15 at 1:41 p.m. ET: Added statement from Keith Powers.

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