Illinois House Passes "Restaurant Reservation Anti-Piracy Act" to Thwart Unauthorized Resale of Dining Spots

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Illinois advances a bill to outlaw unauthorized sales of restaurant reservations, aiming to protect consumers and restaurants from inflated resale prices and lost revenue.

In the ongoing battle against bots and third-party profiteers in the restaurant reservation arena, Illinois is taking legislative action with a bill that aims to protect consumers and eateries alike. The "Restaurant Reservation Anti-Piracy Act," which sailed through the Illinois House, targets unauthorized resellers who have been scooping up coveted dining spots and selling them at a premium.State Rep.

Margaret Croke, a Democrat from Illinois, was spurred into action after repeatedly failing to secure reservations at popular local restaurants. In her quest to understand why, she found that these hard-to-get spots were often nabbed by companies and then resold at inflated prices. As reported by FOX 32 Chicago, Rep.



Croke was astonished to discover reservations for places like Armitage Ale House up for grabs at around $400 for a Friday night.The bill, HB 2456, is designed to make it illegal for any party without a written agreement with a restaurant to list, sell, or advertise reservations on any platform. The proposed legislation comes with steep penalties for violators—a $1,000 civil penalty for each day of unauthorized selling, as outlined by the Chicago Sun-Times.

The issue extends beyond just the frustrations of diners being outbid for reservations; it also impacts the restaurants themselves. Alice Wozniak, a New York restaurant manager, explained to The Wall Street Journal that unauthorized reservation selling can result in lost revenue and tips for restaurants, and it precludes the restaurant from adequately preparing for guests' needs, such as dietary restrictions.Yet, Jonas Frey, founder of Appointment Trader, one of the third-party services under scrutiny, maintains that his company is simply operating under the laws of supply and demand.

In a counterargument rife with controversy, Frey stated to FOX 32 Chicago, "That argument that because of Appoint Trader you can't get a reservation is absolutely bogus." He contends that his platform is consumer-driven and that they take measures to prevent bot and scalper activity..