Third-Party Delivery Regulation (Customer Data)
The NYC Hospitality Alliance led the fight for to regulate third-party delivery companies and create a fairer and more equitable marketplace for our city’s restaurants with the most supportive reform in industry anywhere in the country. One of these reforms is:
This law requires third-party delivery companies to provide restaurants, upon request, with all customer data of people who order from their restaurants through such platforms. Data includes email address and order history. The customer data must be provided in a machine-readable format, disaggregated by customer, on an at least monthly basis. Restaurants may use this data for their own marketing outside the third-party website, however, they may not the sell data to another party. The customer will have the option to opt out of the data share and request and receive deletion of their data from a restaurant. This legislation will allow restaurants to better own and manage their customer relationships while driving profitable direct delivery and on-premises dining business. Importantly, it will reduce the leverage huge third-party delivery companies have over restaurants when they do not share with restaurants their own customer data. This allows them to be gatekeepers and ensure orders are driven through their channels where they extract hefty fees, especially when it’s not incremental business the third-party delivery company is generating. By not sharing data, it makes it difficult for restaurants to leave third-party delivery platforms because then they lose access to their customers, and then the platforms continue to use their customer data to promote competitor restaurants that stay on their platform. The legislation empowers restaurants to leave exploitative platforms if they choose because they will now have access to their customer data and can market to them directly. Read legislation.