Proposed Illinois law would fine apps for unauthorized restaurant reservations

The Illinois House passed a bill on April 7 that would outlaw unauthorized restaurant reservations from third-party services and bots.

The bill was filed by Illinois Rep. Margaret Croke in February and amended twice before passing through the House on Monday.

Here’s what to know about the bill.

What is the bill targeting?

HB 2456, also known as the Restaurant Reservation Anti-Piracy Act, would prevent third-party services from listing, advertising, promoting or selling restaurant reservations through their website, mobile app or other platform without a written agreement.

Any person who violates the bill would be subject to a $1,000 civil penalty, with each day of unauthorized distribution warranting a separate violation.

Which restaurant reservation sites would the HB 2456 affect?

Sites that are authorized to distribute reservations through existing agreements with restaurants will not be affected by the bill. Examples include services like OpenTable and Resy.

Services without authorization would be prohibited from distributing reservations. An example is Appointment Trader, which uses bots to snag reservations before reselling them at exorbitant prices.

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Alice Wozniak, the manager of Raoul’s Restaurant in New York, told The Wall Street Journal that services like this can "preclude the average diner from getting in the door." She also said unsold reservations can cause the restaurant to lose out on revenue and tips, while reservation trading can prevent the restaurant from knowing vital information, such as a diner’s preferences and allergies.

What happens now?

Now that the bill has passed through the first chamber of the Illinois House, it must pass the second chamber and be sent to the governor within 30 days.

The bill will then become a law if the governor signs it or fails to take action within 60 days. If the governor vetoes the bill, the chambers can either override the veto or amend the bill as requested by the governor.