A DoorDash poster is displayed in a restaurant on the day they go public in New York on December 9, 2020.
Carlo Allegri | Reuters
DoorDash filed a lawsuit Wednesday against New York City over a new law that forces delivery companies to share more customer data with their restaurants.
Earlier this summer, the City Council passed a bill requiring delivery companies to provide customer details, such as names, phone numbers, emails and delivery addresses, to restaurants that fulfill the order. , unless a customer chooses.
The law will come into force in December.
DoorDash has disallowed the bill as unconstitutional and undermined the privacy of New York City residents. The company argued in the lawsuit that “there are virtually no restrictions on what restaurants can do with this data” or data security guidelines.
“In an era of intense concerns about data privacy and identity theft, this forced disclosure is a shocking and invasive intrusion into consumer privacy,” DoorDash said in the complaint.
The company also argued that restaurants will be able to use their trade secrets to compete directly with DoorDash. According to the lawsuit, this would force the company to “modify its services so that fewer resources are offered in restaurants, fewer profit opportunities for delivery couriers, and fewer options for New York City customers. ”.
Some restaurants have asked app-based delivery companies, such as DoorDash, Grubhub and Uber Eats, to share more customer data so that their reliance isn’t as strong on platforms. Restaurants could be marketed directly to customers and should not feel closed to the use of a service.
Wednesday’s lawsuit is the latest in a series of complaints between food delivery platforms and regulators. Last week, DoorDash, Grubhub, and Uber Eats filed a lawsuit against New York City over a bill that would allow them to install emergency delivery spending limits during the pandemic permanently.
Companies claim the law is unconstitutional because it “interferes with freely negotiated contracts between platforms and restaurants by changing and dictating the economic terms on which a dynamic industry operates.”
Similarly, DoorDash and Grubhub are suing San Francisco, which has also introduced a 15% permanent delivery spending limit.
The New York mayor did not immediately respond to a request for comment.
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