Sponsors (3)
Requires written agreements before third‑party reservation services list or sell restaurant reservations and voids indemnity clauses that shift platform liability; violations enforceable by the FTC.
The bill gives restaurants stronger control and consumer protections around reservation listings and reduces legal exposure for venues, but shifts compliance costs and regulatory burdens onto reservation platforms (and potentially restaurants and consumers) and risks excluding smaller vendors from third-party services.
Restaurants and food-service businesses can control who lists and sells their reservations, reducing unauthorized listings and potential revenue loss.
Consumers who book reservations gain stronger protection from deceptive or unauthorized reservation listings because the FTC can treat violations as unfair or deceptive practices and enforce penalties.
Bars, restaurants, and similar establishments are protected from being forced to indemnify reservation platforms for harms the platforms cause, lowering legal and financial risk for small venues.
Third-party reservation platforms and services will face higher compliance costs and restrictions on listings, which may reduce available services or lead platforms to pass costs onto restaurants and consumers via higher fees or prices.
Smaller or informal food vendors (e.g., food trucks, carts) may be excluded from third-party platforms if they lack capacity to negotiate agreements, reducing their market access and consumer choice—especially in rural communities.
Expanding FTC enforcement into this marketplace could increase paperwork, regulatory burden, and litigation risk for platforms and establishments as parties dispute compliance and contractual obligations.
Based on analysis of 2 sections of legislative text.
Official title: To prohibit third-party restaurant reservation services from offering or arranging unauthorized reservations for food service establishments, and for other purposes.
Introduced May 14, 2025 by Nancy Mace · Last progress May 14, 2025
Requires third-party restaurant reservation services to have a written agreement with a food service establishment (or its authorized designee) before listing, selling, promoting, or otherwise offering reservations for that establishment. Violations are treated as unfair or deceptive acts and enforceable by the Federal Trade Commission; the law also voids contract clauses that force restaurants to indemnify reservation platforms for harms the platforms cause. The rule takes effect 180 days after enactment.