Second Circuit Court blocks NYC law forcing delivery apps to share customer data

A Second Circuit three-judge panel upheld a district court’s finding that New York City’s 2021 ordinance compelling third-party food-delivery services to share patron data with restaurants violates the First Amendment. The judges noted that the law forces customers to opt out on a per-order basis, creating a marketing list that users cannot permanently escape and offering no less intrusive alternatives. DoorDash, GrubHub and Uber Eats sued to block the rule, contending that the disclosure of names, phone numbers, email addresses, delivery locations and order contents could be used to lure away their customers and intrude on privacy.

The appellate opinion emphasized that the required information pertains to individual users rather than the marketplace itself, and that the city failed to demonstrate a compelling interest beyond vague economic support for restaurants. Judge Michael Park added that the regulation amounts to compelled speech for the sake of economic favoritism. The New York City Law Department said it is reviewing the decision, while restaurant groups had defended the law as a remedy to the data monopoly held by delivery platforms.