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NYC will not enforce restaurant customer data-sharing law while DoorDash sues

| Oct 05, 2021 02:50 PM EDT

A DoorDash sign is pictured on a restaurant on the day they hold their IPO in the Manhattan borough of New York City, New York, U.S.,

New York City agreed to hold off on requiring food delivery companies to share customer data with restaurants, the subject of a recent lawsuit by DoorDash Inc. In a joint filing on Monday with the U.S. District Court inManhattan, the city said it will not enforce a new law requiringthe disclosures while the lawsuit is pending, and DoorDashwithdrew its request for an injunction to block enforcement.

DoorDash sued the city on Sept. 15, calling a requirement that food delivery app companies provide customers' names, phone numbers, email addresses and delivery addresses to restaurants a "shocking and invasive intrusion of consumers' privacy."

The San Francisco-based company also said the law would let restaurants "free-ride" on data they would not demand from in-person diners.

Since the COVID-19 pandemic began, New York City has tried to help restaurants that had resisted food delivery app fees as high as 30%, but which became more dependent on delivery as dining rooms closed or limited capacity and people ate at home.

In a separate case, DoorDash and rivals Grubhub Inc and Uber Eats sued the city on Sept. 9 over a law capping fees that delivery companies charge restaurants.

They said that law has cost them hundreds of millions of dollars in revenue.

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

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