New York City

Gov. Hochul Signs Landmark Bill to End Reservation Scalping in New York's Dining Scene

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Published on December 19, 2024
Gov. Hochul Signs Landmark Bill to End Reservation Scalping in New York's Dining SceneSource: Wikipedia/This image or media was taken or created by Matt H. Wade. To see his entire portfolio, click here.@thatmattwade This image is protected by copyright! If you would like to use it, please read this first., CC BY 3.0, via Wikimedia Commons

In a significant step to combat the growing underground market of restaurant reservation scalping, Governor Kathy Hochul has signed a new legislation into law. As reported by Eater, the Restaurant Reservation Anti-Piracy Act takes aim at third-party services that have been capitalizing on New York’s dining scene by securing and reselling reservations at marked-up prices.

Effective today, this law directly addresses the high-stakes booking process driven by platforms like Resy and Opentable. At upscale restaurants, diners struggled with bots and resellers turning simple reservations into expensive commodities. As a result, restaurants and legitimate patrons often faced empty seats and lost revenue.

The crackdown on unauthorized reservation sales, according to a statement from the Governor's office obtained by the official Governor's website, “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.” This legislative action has garnered support from both the New York State Restaurant Association and the NYC Hospitality Alliance, signaling a united front among industry leaders against this predatory practice.

With Governor Hochul's signature, gone are the days when getting into highly sought-after restaurants meant engaging with shady middlemen. As Assemblymember Alex Bores articulated, “With this legislation, we are ensuring that families can celebrate a graduation, anniversary, or birthday without a $250, $500, or even $1,000 cover charge. We also protect restaurants from increased cancellations and protect workers from lost tips. A true win-win-win,” as mentioned in Eater. Adding weight to the bill are the real consequences it holds for unauthorized services – not only disrupting industry operations but directly hitting restaurant staff who count on filled seats for their livelihoods.