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New York Bans Black Market Restaurant Reservation Sales

Legislation signed by Governor Kathy Hochul aims to curb AI-driven scalping and protect diners and restaurants from exploitative practices.

  • New York's Restaurant Reservation Anti-Piracy Act prohibits unauthorized third-party services from selling restaurant reservations without consent.
  • The law targets AI bots and scalpers who hoard reservations and resell them at inflated prices, often charging hundreds or thousands of dollars per spot.
  • Restaurants have faced operational challenges due to reservation scalping, including increased no-shows, double bookings, and financial losses for staff relying on tips.
  • Violators of the law, which takes effect in mid-February, face daily civil penalties of up to $1,000 per violation.
  • While legitimate platforms like Resy and SevenRooms remain unaffected, critics argue the law may not fully address inequities in accessing high-demand dining spots.
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