The Supporting Equal Access to Tables (SEAT) Act of 2024, introduced by Representative Anthony D’Esposito (NY-04) and Representative Josh Gottheimer (NJ-5) on September 16, 2024 addresses the growing problem of unauthorized third-party reservation services that list, promote, or sell restaurant reservations without the consent of independent restaurants and bars. This practice disrupts operations, frustrates customers, and unfairly burdens small business owners with liabilities caused by actions outside their control.

Independent restaurants across the country are suffering as third-party platforms use automated bots to secure reservations and resell them at inflated prices. Customers unknowingly make reservations through these unauthorized channels, only to face confusion or additional fees upon arrival, leading to frustration for both diners and restaurant staff. 

The SEAT Act provides a much-needed safeguard against these deceptive practices and ensures that the dining experience is transparent, seamless, and fair for restaurant owners, staff, and diners.

 Key Components of the SEAT Act of 2024

• Prohibition on Unauthorized Reservations: The SEAT Act would prohibit third-party reservation services from listing, promoting, or selling reservations without a clear, written agreement with the restaurant. This provision would ensure that independent restaurants maintain control over their booking systems, eliminating the confusion caused by unauthorized reservations. restaurants would better manage their seating and ensure a smoother dining experience for customers.
• Enforcement by the Federal Trade Commission (FTC): The SEAT Act would treat violations as unfair or deceptive acts under the Federal Trade Commission (FTC) Act. The FTC would be responsible for ensuring compliance with the SEAT Act, giving restaurants a path for recourse if unauthorized reservations occur. This provision would guarantee federal oversight and enforcement, holding third-party services accountable for their actions.
• Prohibition of Indemnification Clauses: Many third-party services include indemnification clauses in their contracts, which shift liability onto restaurants for any damages or issues caused by the service provider. The SEAT Act would prohibit these clauses, ensuring that restaurants cannot be held financially responsible for problems created by third-party platforms. This protection is especially critical for independent establishments that operate with thin margins and limited legal resources.

 Why the SEAT Act Matters to Independent Restaurants and Bars

• Protecting Business Autonomy: The SEAT Act would allow independent restaurant operators to decide which services can sell or promote their reservations. This would ensure that only authorized platforms have access to the restaurant’s booking system, safeguarding against third-party manipulation.
• Reducing Customer Confusion: Unauthorized reservations can lead to miscommunication between customers and restaurants. The SEAT Act aims to eliminate this confusion, helping restaurants provide a consistent and reliable experience to their patrons.
• Limiting Liability: By prohibiting indemnification clauses, the SEAT Act would shield independent restaurants from financial and legal risks caused by unauthorized third-party services. This protection helps preserve the financial health of small businesses and ensures that accountability rests with those responsible.

The SEAT Act of 2024 is essential for independent restaurants and bars across the United States. By ensuring that third-party reservation services cannot operate without consent and by protecting businesses from unwarranted liability, this legislation restores fairness and transparency to the reservation process. The Independent Restaurant Coalition strongly urges Congress to pass the SEAT Act and protect the autonomy, integrity, and financial well-being of independent restaurants and bars.