DoorDash sues New York City over new customer data sharing law
By Shubhangi on Sep 16, 2021 | 04:36 AM IST
DoorDash
filed a lawsuit against New York City on Wednesday over a new law requiring
delivery companies to share more customer data with restaurants.
Earlier
this summer, the City Council approved a bill, which would take effect in
December, saying delivery companies will have to provide more customer data to
restaurants including name of the customer, phone numbers and delivery
addresses unless the customer chooses against it.
DoorDash
argued that the new bill compromises its customer’s privacy said that there’s
“virtually no restrictions on what restaurants may do with that data,” nor
guidelines on data security.
“In an era of heightened concerns about data privacy and
identity theft, this compelled disclosure is a shocking and invasive intrusion
of consumers’ privacy,” DoorDash said in the complaint.
DoorDash also says that sharing information with restaurants
would enable them to use its trade secrets to compete with the company. It
added that the company would therefore be forced to “modify its services in a
way that will result in fewer resources being offered to restaurants, fewer
earnings opportunities for delivery couriers, and fewer choices for New York
City customers.”
Similar to the latest complaint by food delivery companies,
DoorDash, Grubhub and Uber Eats filed a lawsuit against New York City last week
over a bill making the emergency delivery fee caps permanent.
The companies argue that the law “interferes with freely
negotiated contracts between platforms and restaurants by changing and
dictating the economic terms on which a dynamic industry operates.”
(With
inputs from CNBC)
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Credits: Reuters