Door Dash Has Filed a Lawsuit Against the City of New York For Violating the City's Food Delivery Data Legislation
Door Dash, Inc. filed a case in the Southern District of New York, alleging that a new ordinance breaches consumer privacy.
Food delivery apps must share consumer data with restaurants, according to a law introduced by the New York City Council in May. On August 29, the bill went into force. Customers can opt out of data sharing, and delivery providers are not required to share data with restaurants unless the establishment specifically asks it.
Door Dash claims that the legislation is "an unlawful coercion of speech in violation of the First Amendment," "an unconstitutional seizure of Door Dash's valuable business information," and "an unconstitutional impairment of private parties' contractual agreements," according to its complaint.
Small companies, according to Door Dash, do not have the same level of data protection as delivery services when it comes to protecting client phone numbers, email addresses, and delivery addresses. The firm claims in its complaint that the bill will put illegal consumers at risk, citing worries from the New York City Hispanic Chamber of Commerce and the Haitian American caucus.
The bill's sponsor, Council Member Keith Powers, described it as an attempt to find the appropriate balance and equality between those who possess information and those who offer products and services. The COVID-19 epidemic had a detrimental impact on numerous eateries, according to Powers.
Door Dash launched a revised pricing system in April after getting complaints for excessive prices during the epidemic. Door Dash now charges restaurants a 15 to 30 percent fee, depending on the payment plan selected by the restaurant. High commission programs expose restaurants to a bigger number of consumers and allow them to serve a wider delivery region. For all pick-up orders, the firm now charges a 6% fee.