In an opinion Wednesday, Judge Torres held unconstitutional a New York City law mandating that online food delivery platforms like Door Dash share customer data (e.g., name, address, email, phone) directly with the restaurants from which customers order their food. The aim of the law was to allow the restaurants to tilt the balance of marketing power away from the online platforms and back to the restaurants.
Judge Torres first concluded that the law implicated speech (not conduct) under the First Amendment: “The Customer Data Law directly regulates what Plaintiffs can (indeed, must) ‘say’ to the restaurants that use their services. In other words, regulation of speech is the object—not an incidental byproduct—of the law.”
She next concluded that the law failed “intermediate” scrutiny because there was only a thin connection between the government interests at stake and the speech burden used to address the interest. The City argued that the law addressed “exploitative” practices like the platforms using data about one restaurant’s customers to pitch to those customers competitor restaurants or restaurants that pay higher fees. But Judge Torres found that the law did little to actually remedy those issues and reflected instead, a “mere preference for one industry over another”:Continue Reading Judge Torres: City Law Compelling Food Delivery Platforms to Share Customer Data With Restaurants Is Unconstitutional Compelled Speech