DoorDash Sues New York City Over Customer Data Law, Second Lawsuit in Week

DoorDash sued New York Metropolis on Wednesday over a brand new regulation requiring meals supply firms to share buyer information with eating places, saying it violates buyer privateness and lets eating places compete unfairly.

The lawsuit is the newest battle in a collection of authorized clashes between meals supply app firms and cities.

It was filed in federal court docket in Manhattan six days after DoorDash, Grubhub, and Uber Eats sued the US’ most populous metropolis over a separate regulation capping charges that supply firms cost eating places.

“The regulation places shoppers first,” Nicholas Paolucci, a spokesman for town’s regulation division, mentioned in an e mail. “It places them in command of their info after they place orders by way of these apps.”

New York Metropolis has tried because the coronavirus pandemic started to assist eating places that had complained about meals supply app charges as excessive as 30 p.c, however which grew to become extra depending on supply as eating rooms closed or restricted capability.

About 90,000 eating places nationwide have closed briefly or completely throughout the pandemic, costing 1.5 million jobs, the Nationwide Restaurant Affiliation mentioned in June.

In Wednesday’s lawsuit, San Francisco-based DoorDash mentioned town exhibited “bare animus” by requiring meals supply app firms to offer prospects’ names, cellphone numbers, e mail addresses, and supply addresses to eating places.

DoorDash mentioned this is able to let eating places “free-ride” on information they’d not demand from in-person diners, in a “surprising and invasive intrusion of shoppers’ privateness.”

It additionally mentioned “extra susceptible populations, particularly undocumented prospects” might be harmed if information have been mishandled, and shared with immigration authorities or hate teams.

Quickly after the pandemic started, New York Metropolis imposed momentary 5 p.c and 15 p.c price caps on meals supply apps, which the businesses hoped would finish as eating places resumed extra regular operations.

The caps value DoorDash, Grubhub, and Uber Eats a whole lot of tens of millions of {dollars} of income by way of July, the businesses mentioned.

DoorDash and Grubhub sued San Francisco in July over price caps there. Chicago sued these firms final month, saying their misleading practices misled prospects and harm eating places. DoorDash and Grubhub rejected Chicago’s claims.

The case is DoorDash Inc v Metropolis of New York, U.S. District Court docket, Southern District of New York, No. 21-07695.

© Thomson Reuters 2021

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