Bon appetit! Hochul signs legislation cracking down on 'black market' for restaurant reservations

Legislation S.9365A/A.10215A prohibits third-party restaurant reservation services from arranging unauthorized reservations

Submitted by the Office of Gov. Kathy Hochul

Gov. Kathy Hochul has signed legislation to crack down on the “black market” for restaurant reservations. The bill prohibits third-party restaurant reservation services from arranging unauthorized reservations, putting an end to a predatory marketplace that placed a cost on consumers before they even entered a restaurant, and made dining inaccessible to those who refused to pay.

“We’re putting an end to the predatory black market for restaurant reservations – protecting consumers and businesses, and giving everyone a chance to get a seat at the dinner table,” Hochul said. “New York is home to some of the best restaurants in the world, and whether you’re returning to your favorite local spot or trying out the latest in fine dining, you deserve a fair system.”

Legislation S.9365A/A.10215A prohibits third-party restaurant reservation services from arranging unauthorized restaurant reservations with food service establishments.

State Sen. Nathalia Fernandez said, “This legislation protects New York's restaurant owners and their customers by putting an end to predatory practices that exploit the reservation process. This law targets unauthorized resellers who cause chaos for restaurants with last-minute cancellations and no-shows, leaving tables empty and hardworking staff without tips. For New York’s vibrant dining scene and small business owners, this measure ensures fairness and reliability, allowing them to serve their guests without disruption.”

Assembly member Alex Bores said, “Thank you, Gov. Hochul, for signing the Restaurant Reservation Anti-Piracy Act, which outlaws the predatory practice of scooping up and selling restaurant reservations. In a time where cost of living is front of mind, this leech industry of reservation-stealing has had negative effects on small businesses, waitstaff and consumers alike. I am proud to contribute to lowering the cost of living for families celebrating big occasions or trying to enjoy a well-deserved night out.”

New York State Restaurant Association President and CEO Melissa Fleischut said, “Restaurant owners and their teams put in countless hours to craft exceptional dining experiences, and for many, their commitment has resulted in high-demand tables and packed houses every night. Unfortunately, AI bots have exploited their hard work by hoarding these coveted reservations and selling them for a profit, all without the knowledge of the restaurant. This has led to increasing ‘no-show’ rates at many establishments, which has a cascading impact on restaurants. Food and beverage orders, employee schedules, and many other aspects of a restaurant rely on accurately predicting how many customers will show on a given night. These ‘bots’ have wreaked havoc on operations, and I am proud to say that New York is the first state in the country to take meaningful action to address this problem. We are grateful to Gov. Hochul for signing this important bill and thankful to Assembly member Bores and Sen. Fernandez for championing this issue and understanding that this is a problem that needed to be addressed.”

NYC Hospitality Alliance Executive Director Andrew Rigie said, “Restaurant reservation scalping deprives businesses and workers of needed money when the seats don’t sell and the table goes empty, and it creates a barrier between them and their customers when unknown guests show up. Reservations are not a hustle for unauthorized third parties to sell for profit. Big thanks to Assembly member Alex Bores and Sen. Nathalia Fernandez for passing their legislation, and thank you, Gov. Hochul, for signing it into law to help stop reservation scalping.”