NYC won’t implement restaurant buyer data-sharing regulation whereas DoorDash sues

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NEW YORK, Oct 5 (Reuters) – New York City agreed to carry off on requiring meals supply corporations to share buyer information with eating places, the topic of a latest lawsuit by DoorDash Inc (DASH.N).

In a joint submitting on Monday with the U.S. District Court in Manhattan, town mentioned it won’t implement a brand new regulation requiring the disclosures whereas the lawsuit is pending, and DoorDash withdrew its request for an injunction to dam enforcement.

DoorDash sued town on Sept. 15, calling a requirement that meals supply app corporations present prospects’ names, cellphone numbers, e mail addresses and supply addresses to eating places a “shocking and invasive intrusion of consumers’ privacy.”

The San Francisco-based firm additionally mentioned the regulation would let eating places “free-ride” on information they’d not demand from in-person diners.

Since the COVID-19 pandemic started, New York City has tried to assist eating places that had resisted meals supply app charges as excessive as 30%, however which turned extra depending on supply as eating rooms closed or restricted capability and other people ate at dwelling.

In a separate case, DoorDash and rivals Grubhub Inc and Uber Eats (UBER.N) sued town on Sept. 9 over a regulation capping charges that supply corporations cost eating places.

They mentioned that regulation has value them tons of of tens of millions of {dollars} in income.

The case is DoorDash Inc v City of New York, U.S. District Court, Southern District of New York, No. 21-07695.

Reporting by Jonathan Stempel in New York; Additional reporting by Sara Merken; Editing by Bill Berkrot

A DoorDash sign on a restaurant on the day they hold their IPO in the Manhattan borough of New York City, New York, U.S., December 9, 2020. REUTERS/Carlo Allegri

A DoorDash delivery person is pictured on the day they hold their IPO in the Manhattan borough of New York City, New York, U.S., December 9, 2020. REUTERS/Carlo Allegri/File Photo

A DoorDash sign is pictured on a restaurant in the Manhattan borough of New York City, New York, U.S., December 9, 2020. REUTERS/Carlo Allegri/File Photo