Doordash sues NYC over data-sharing law

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Doordash is suing New York City over a controversial law enacted this summer that forces food delivery app companies to share customer data with restaurants, according to a complaint filed Wednesday.

Doordash and other delivery apps, including GrubHub and UberEats, fought against the bill before it was approved by the New York City Council on July 29, arguing that it raised serious consumer privacy concerns.

Some restaurants and consumer groups, including the New York Hispanic Chamber of Commerce, Tech: NYC and the National Gay and Lesbian Chamber of Commerce, also spoke out against the law citing privacy concerns.

The law requires app companies to share customers’ names, phone numbers, delivery and mailing addresses and purchase histories with restaurants that request this data. But Doordash argues that it “does not mandate any data-security requirements once the customer data is transferred to restaurants,” according to the complaint filed in federal district court in Manhattan.

A sign in a window stating that a restaurant delivers with Doordash.
Some restaurants and consumer groups are opposed to the NYC law that requires delivery companies to hand over customer data to restaurants.
REUTERS

The law requires the app companies to allow customers to opt-out of data sharing but if the customer does not opt-out when placing an order, consent is assumed.

The complaint is the second lawsuit against the Big Apple by the food delivery industry, which sued the city over another law capping the fees they charge restaurants for their services. Doordash, GrubHub and UberEats also sued the city of San Francisco over the same fee cap issue.

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