SACRAMENTO, CA – Assemblymember Catherine Stefani (D-San Francisco) introduced Assembly Bill 1245, the California Restaurant Reservation Anti-Piracy Act. The bill would prohibit third-party reservation services from arranging unauthorized reservations, putting an end to a predatory marketplace that exploits customers and harms small businesses.
“Online reservation systems should be fair, transparent, and support our small businesses.” said Assemblymember Stefani. “AB 1245 will crack down on the predatory practice of reservation scalping, which not only deceives consumers but also exploits our local restaurants who are still struggling to recover from the pandemic. By protecting these businesses from fraud and unfair competition, we are ensuring they can focus on what truly matters—serving their customers, creating jobs, and driving our economic recovery.”
Similar to a recent law passed in New York, the California Restaurant Reservation Anti-Piracy Act aims to combat bots that book up several reservations at a time and resells them in a black market. This has created a dining culture where only those who can pay the extra fees are able to secure highly coveted reservations at popular establishments, leaving many individuals and families with no opportunity to simply book a reservation once slots have been released by the restaurant. Fraudulent reservations often result in no-shows, confusion from customers, and are generally damaging to small businesses.
“I am proud to stand with Assemblymember Stefani, and with my fellow restaurant owners against the parasites who unethically profit off the demand we’ve worked so hard to build.” said Assemblymember Josh Lowenthal, joint author of the bill. “This booking arbitrage loophole needs to end, as restaurants employ 10% of the state’s workforce but struggle to keep the lights on in the current financial climate. We will not stand idly by while consumers, and business owners alike fall victim to exploitation by these bad actors. We need to stand with our restaurants today and every day.”
“This bill is truly meaningful for California restaurants and will help protect their bottom lines by reducing the ‘no shows’ caused by fraudulent reservations.” said Debby Soo, CEO of OpenTable. “We’re happy to see the state take a powerful stance to support its restaurants.”
“The California Restaurant Association is happy to support AB 1245 because it’s a commonsense bill that will benefit consumers and restaurants alike.” said Matt Sutton, Senior Vice President of Government Affairs and Public Policy of the California Restaurant Association. “AB 1245 will ensure middlemen don’t rack up the cost for reservations so families can afford to visit their desired dining experience and restaurants are not hit with fake reservations.”
“Resy proudly supports this bill and California restaurants as they work to end reservation fraud.” said Pablo Rivero, CEO of Resy and Head of American Express Global Dining. ”This legislation will protect restaurants from losing revenue to no shows and fraud, while restoring the integrity of the reservation process for diners.”
AB 1245 would prohibit a third-party reservation service from selling reservations for restaurants online without a written agreement. Additionally, this bill would authorize the Attorney General and a victim of false reservations to recover specified civil penalties, which would then be deposited into the State Treasury to support the purpose of the Act.
AB 1245 will be heard in Assembly policy committees during the spring.
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