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DoorDash sues New York City over new customer data sharing law

PUBLISHED ON 2021-09-16 03:29:00 EST Shubhangi

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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)

Picture Credits: Reuters

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