“DoorDash sues New York City over rights to customer data”, 15 Sep 2021

DoorDash is suing New York City over a new law that requires delivery companies to share customer data with restaurants.

The lawsuit … is the latest in a string of legal tussles between the delivery companies and local governments, reflecting unease over the phenomenal growth of delivery and its impact on restaurants…

In its new lawsuit, DoorDash says an ordinance passed by the New York City Council in late July is unconstitutional and violates customer privacy … Customers can opt out and keep their information private, but only on an order-by-order basis.

In an era of heightened concerns about data privacy and identity theft, this compelled disclosure is a shocking and invasive intrusion of consumers’ privacy …

But many restaurants … supported the bill … [saying] the bill reduces the leverage delivery companies have over restaurants … It also gives them a chance to market directly to customers.

Delivery companies saw big sales gains over the last year as pandemic lockdowns closed restaurant dining rooms and more people ate at home…

… But their commission fees, which can be as high as 30% per order, have cut into the already thin margins of restaurant owners in an unprecedented era …

That relationship between delivery companies got more scrutiny from local lawmakers as the pandemic wore on. Dozens of cities [have] passed temporary fee caps. [In addition, some states] … sued [delivery companies] claiming … illegally high fees …[and] deceptive business practices…