The Independent Restaurant Coalition is advocating for legislation that stops predatory reservation platforms from exploiting small businesses and misleading diners.
Unauthorized reservation services profit by exploiting small businesses, misleading diners, and siphoning off revenue that should go to restaurant owners and their staff. The Supporting Equal Access to Tables (SEAT) Act is a common-sense solution to protect independent restaurants, safeguard local jobs, and restore trust for customers across the country.
The bipartisan SEAT Act, co-sponsored by Representative Nancy Mace (SC-01) and Representative Cleo Fields (LA-06), 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 bill’s reintroduction in the 119th Congress demonstrates continued bipartisan commitment to protecting independent restaurants from predatory reservation schemes. This practice disrupts operations, frustrates customers, and unfairly burdens small business owners with liabilities caused by actions outside their control.
The problem has only intensified since the bill's initial introduction in previous sessions. In 2024, reports of unauthorized reservation schemes increased by an estimated 40%, with platforms using sophisticated bot networks to capture premium reservation slots and resell them at markups of 200-500%.
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. The legislation's scope is comprehensive, covering traditional restaurants, mobile food vendors such as food trucks, bars and lounges, tasting rooms, and establishments located within larger facilities such as hotels, airports, stadiums, and entertainment venues.
Key Components of the SEAT Act:
- 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.