DoorDash sues New York City over new data sharing law

1 week ago

A DoorDash motion is pictured connected a edifice connected the time they clasp their IPO successful New York, December 9, 2020.

Carlo Allegri | Reuters

DoorDash filed a suit Wednesday against New York City implicit a caller instrumentality that requires transportation companies to stock much lawsuit information with its restaurants.

The City Council approved a bill earlier this summertime that transportation companies person to stock lawsuit data, specified arsenic names, telephone numbers, emails and transportation addresses, with restaurants that fulfill the order, unless a lawsuit opts out.

The instrumentality is acceptable to instrumentality effect successful December.

DoorDash has adamantly disavowed the bill, calling it unconstitutional and undermining of New York City residents' privacy. The institution argued successful the suit that there's "virtually nary restrictions connected what restaurants whitethorn bash with that data," nor guidelines connected information security.

"In an epoch of heightened concerns astir information privateness and individuality theft, this compelled disclosure is simply a shocking and invasive intrusion of consumers' privacy," DoorDash said successful the complaint.

The institution besides argued that restaurants volition beryllium capable to usage its commercialized secrets to vie straight with DoorDash. That would, according to the suit, unit the institution to "modify its services successful a mode that volition effect successful less resources being offered to restaurants, less net opportunities for transportation couriers, and less choices for New York City customers."

Some restaurants person called for app-based transportation companies, similar DoorDash, Grubhub and Uber Eats, to stock much lawsuit information truthful their reliance isn't arsenic beardown connected the platforms. Restaurants could marketplace straight to customers and wouldn't person to consciousness locked-in to utilizing a service.

Wednesday's suit is the latest successful a drawstring of complaints betwixt nutrient transportation platforms and regulators. Last week, DoorDash, Grubhub and Uber Eats filed a lawsuit against New York City over a bill that would marque exigency transportation interest caps installed during the pandemic permanent.

The companies assertion the instrumentality is unconstitutional due to the fact that "it interferes with freely negotiated contracts betwixt platforms and restaurants by changing and dictating the economical presumption connected which a dynamic manufacture operates."

Similarly, DoorDash and Grubhub are suing San Francisco, which also introduced a imperishable 15% transportation interest cap.

The New York City's Mayor's bureau did not instantly respond to a petition for comment.

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