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

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Distribution platform says law raises customers’ privacy concerns

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

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Under a law approved in July, third-party food delivery services in the city must share customers’ names, phone numbers, emails and delivery addresses with a restaurant that fulfills DoorDash orders, unless the customer opts out. does not. In its complaint, DoorDash argues that customers entrust DoorDash with sensitive data, “that they would not hand over to smaller businesses that do not have the same robust data protection and security protocols.”

The company said in-person diners are generally not expected to disclose sensitive personal information to restaurants. In addition, the ordinance stipulates that each customer consents to the sharing of their personal data – unless they specifically opt out on a per-order basis – in accordance with prevailing privacy best practices. ,” the lawsuit states. And there’s no guarantee that restaurants will be able to store customer data in a way that both complies with privacy laws and prevents unauthorized access, DoorDash argues.

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New York City Counselor Keith Powers, who introduced the law Earlier this year, Wednesday did not immediately respond to a request for comment on the lawsuit.

Electronic Frontier Foundation (EFF) wrote in a letter to the New York City Council in July that this “sympathy”[d] with the goal of setting a more level playing field for all businesses, especially after the year we all faced,” but it opposed the measure: “Privacy should be the default of any transaction, And consumers should be asked to opt-in. Sharing your information every time you transfer it to a new entity. ”

In addition, the EFF said, the ordinance “sets a mature target for hackers and data thieves who seek to exploit [the customers’] Information.

Last year restaurants that relied on delivery to stay open during the pandemic have tangled with online delivery platforms like DoorDash over some of their business practices. One owner of a pizzeria, which bought its inventory from DoorDash at a profit last year, highlighted how delivery companies were willing to lose money on delivery to add more restaurants to their ecosystem. DoorDash rival Grubhub has been caught creating a website that impersonates and listing restaurants on its platform without their knowledge or permission.

Last week, DoorDash, Grubhub and Uber Eats sued New York City over another new law that limits the amount of fees delivery companies can collect from restaurants. The city imposed a temporary cap on delivery charges last June, limiting delivery platforms to a maximum per order fee of 23 percent, which is 15 percent for deliveries, 5 percent for restaurants listed on its app, and credits. breaks down as 3 percent. Card processing fee. platforms have been Allegations of adding other obscure charges However, on top of their delivery fees.

In the lawsuit filed Wednesday, DoorDash is seeking an injunction against enforcing the new customer data rule, unspecified monetary damages and a jury trial. The law is currently due to take effect in December, barring any court action.

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