DoorDash suing NYC over customer data rights
DoorDash claims a recently passed bill will 'jeopardize the safety and privacy of New Yorkers'
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DoorDash is suing New York City over a recent law requiring delivery companies to share customer data with restaurants.
In the lawsuit, filed Wednesday, the delivery company argues that the ordinance passed by the New York City Council in July is unconstitutional and violates customer privacy.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DASH | DOORDASH INC. | 126.45 | -3.65 | -2.80% |
| UBER | UBER TECHNOLOGIES INC. | 69.16 | -2.15 | -3.01% |
Under the law, third-party food delivery services like DoorDash, GrubHub and UberEats, are required to share customer data including names, addresses, phone numbers and order contents to any restaurant that requests that information. Customers can opt out and keep their information private, but only on an order-by-order basis.
A door-dash delivery driver waits near a restaurant on December 30, 2020 in New York City. ( Alexi Rosenfeld/Getty Images / Getty Images)
DoorDash claims that the City Council passed the legislation despite "concerns of more than 5,400 New Yorkers who wrote to them in opposition."
This includes various civil rights, immigration, business and privacy advocacy groups, according to DoorDash.
"When the City Council proposed legislation that would jeopardize the safety and privacy of New Yorkers, we spoke out in opposition, highlighting the risks that this law would pose to vulnerable populations in particular, New Yorkers broadly, and our own business," DoorDash said in a statement.
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The delivery company added that it was "left with no choice" but to take legal action.
In its court filing, the company noted that "this compelled disclosure is a shocking and invasive intrusion of consumers’ privacy" especially during a time of "heightened concerns about data privacy and identity theft."
The company pointed out that in-person diners would never be asked to share the same information with restaurants.
"Part of serving our community is ensuring trust between merchants, customers, and Dashers," DoorDash's statement continued.
The delivery company says the City Council’s legislation, N.Y.C. Int. No. 2311-A "would not only destroy that trust by forcing delivery platforms to disclose sensitive, personal customer data to restaurants without any protections for that data, but would also open the door for sensitive information" to be "misused, spammed, and available without any protection because of how poorly the bill was drafted."
However, many other restaurants, including NYC Hospitality Alliance, which represents bars and restaurants in New York, supported the bill.
The alliance claims it reduces the leverage delivery companies have over restaurants because it ensures they won’t lose access to their customers if they decide to leave a delivery platform. It also gives them a chance to market directly to customers.
The Associated Press contributed to this report.