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DoorDash is really making the state of NY sweatINTL

DoorDash is really making the state of NY sweat

DoorDash (DASH) is going to court to stick up for the privacy rights of its customers. Last Wednesday, the company filed a lawsuit against New York City over a new law that requires food delivery companies to share customer data with restaurants.

Under the legislation passed in July of this year, delivery companies must share names, addresses, phone numbers, and order contents to any restaurants that request the information. Customers can choose to opt out, but only on an order-by-order basis.

DoorDash claims the law is unconstitutional and violates customer privacy rights. However, there’s always two sides to a story. The NYC Hospitality Alliance, which supports the law, claims that companies like DoorDash want to withhold the customer information in order to “control the market and extract more fees from small businesses.”

why it matters

DoorDash and New York are going to get used to seeing each other in court. The company, along with Uber Eats (UBER) and Grubhub, filed a seperate lawsuit last week over another bill that puts a cap on delivery fees these companies can charge to restaurants.