ALBANY, N.Y. — Booking dinner reservations can be difficult for some people, and not just because trendy and high-profiles restaurants are known for quality dishes and ambiance.
Reservation fraud has been on the rise in New York City and nationwide, and on Thursday, the New York State Legislature passed what's known as the Restaurant Reservation Anti-Piracy Act.
The bill aims to eliminate predatory software found on the online restaurant reservation marketplace, which lead consumers to pay marked-up prices to dine. It also protects businesses from being left with empty tables when those reservations go unused.
The bill, which lawmakers said is the first of its kind in the nation, will be sent to Gov. Kathy Hochul's office to sign into law.
"Today is a major victory for the hospitality industry in New York, setting a precedent for the nation," Melissa Fleischut, president and CEO of the New York State Restaurant Association, said Thursday in a statement.
"Our members work hard each day to create a desirable dining experience. Now, when diners do have the ability to dine out, they will no longer have to compete with predatory bots capturing reservations and reselling them at exorbitant prices. And restaurants will no longer be left with empty seats from unauthorized third-party reserved tables."
The language of Senate Bill S9365 said the legislation "prohibits third-party restaurant reservation services from arranging unauthorized restaurant reservations with food service establishments."
The bill also allows for fines for people who use phony emails and numbers to book reservations, only to resell them through various sites for a hefty payday.
The CEOs of both OpenTable and Resy both applauded the legislation, calling a strong show of support to restaurants and the people who work there.
“The passage of this bill is a meaningful one for restaurants and will help protect their bottom lines by reducing the no-shows caused by fraudulent reservations. We are pleased to see New York take a strong stance to support its restaurants," Debby Soo, CEO of OpenTable, said in a statement.
Added Pablo Rivero, the Resy CEO: "This important legislation is a significant step forward to protect restaurants and diners from reservation fraud."
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