Legislation sponsored by Assemblyman William Sampson, Assemblywoman Katie Brennan, and Assemblyman Clinton Calabrese to protect restaurants and patrons from unauthorized third-party reservation services was signed into law today.
Bill A3318 will prohibit third-party restaurant reservation services from advertising, listing, promoting, or selling reservations for a food service establishment without a written agreement from the establishment. The measure is intended to prevent outside services from profiting off restaurants without consent or transparency.
“Restaurants should have control over how their business is represented and how reservations are sold,” said Assemblyman Sampson (D-Hudson). “This bill protects small businesses from deceptive practices and ensures customers know they are dealing with authorized reservation services.”
Under the bill, violations will be subject to civil penalties of up to $500 per violation, with penalties accruing daily for each affected food service establishment. Restaurants and consumers harmed by unauthorized listings will also be able to seek injunctive relief and damages in Superior Court.
“Our local restaurants work hard to build relationships with their customers, and they shouldn’t have to worry about outside companies using their business without permission,” said Assemblywoman Brennan (D-Hudson). “Through this bill, we’re making sure these owners remain in control of how their business is represented online while giving customers peace of mind that the reservations they are booking are legitimate.”
“When someone makes a dining reservation, they are placing their trust in the restaurant and in whoever facilitates that booking that their table will be available. But when an unauthorized third party makes promises it has no obligation to honor, it is the patron who is left without a table, and the restaurant that is left to manage a situation entirely outside of its control,” said Assemblyman Calabrese (D-Bergen, Passaic). “This bill would ensure that businesses are not left holding the bag for promises they didn’t make. Instead, the legislation would put the responsibility on whoever arranged the booking.”