Hochul signs law to stop restaurant scalpers

ALBANY, N.Y. (NEXSTAR) — Gov. Kathy Hochul signed a bill on December 19 targeting the illegal resale of restaurant reservations in New York. The law will take effect 60 days after signing, around February 17.

S9365A/A10215 aims to give restaurants relief from reservation fraud and to give New Yorkers a fairer dining system, Hochul said. It bans third-party platforms from arranging reservations without explicit permission, protecting diners and small businesses from scams. Fines cost as much as $1,000 per unauthorized listing, increasing daily for repeat offenders.

“We’re putting an end to the predatory black market for restaurant reservations,” Hochul said. "And giving everyone a chance to get a seat at the dinner table."

The Restaurant Reservation Anti-Piracy Act identifies a growing problem where third-party platforms—a "leech industry" according to the bill's sponsor, Democratic Assemblymember Alex Bores—use bots to reserve tables and resell them at inflated prices. The law makes those platforms sign written agreements with restaurants to keep the system fair and limit scalping.

Restaurants and customers alike frequently get burned by last-minute cancellations or no-shows from phantom bookings. Staff lost tips and hours, owners couldn’t buy or prep the right volume of food, and diners were turned away from popular spots with limited seating but empty tables.

This first-in-the-nation law mirrors state and city efforts to regulate food delivery apps in 2021. "We hope the Restaurant Reservation Anti-Piracy Act inspires other states to push back against bad actors taking advantage of restaurants’ hard work and consumers," said Melissa Fleischut, President of the New York State Restaurant Association.