SEAT Act of 2024 Supporting Equal Access to Tables Act of 2024
Impact
The SEAT Act will have significant implications for both food service establishments and third-party reservation platforms. Under the enforcement provisions established by the bill, violations will be treated as unfair or deceptive practices, leading to potential penalties enforced by the Federal Trade Commission (FTC). This empowerment of the FTC enhances consumer protection against practices that could harm both restaurant operators and diners. The act's enforcement mechanisms are designed to create accountability among third-party services, ensuring that only authorized reservations are made, and thereby safeguarding the business interests of food establishments.
Summary
House Bill 9601, also known as the Supporting Equal Access to Tables Act of 2024 (SEAT Act), primarily aims to regulate third-party restaurant reservation services by requiring that such services can only list, promote, or create reservations for food establishments with which they have a formal agreement. This legislation seeks to address the rise in unauthorized reservations made through these services, which can lead to confusion and potential losses for restaurants. By imposing a requirement for explicit consent between food establishments and reservation services, the bill attempts to provide a more balanced and equitable environment for restaurants and consumers alike.
Contention
Debate surrounding HB 9601 is expected to revolve around issues of market fair play and consumer rights. Supporters argue that requiring explicit agreements will prevent exploitative practices by reservation services that can adversely affect restaurant operation and consumer experience. Conversely, critics may express concerns regarding the potential for stifling competition and innovation among small reservation service providers who may struggle to secure agreements with widespread restaurant chains. Additionally, the bill's definitions and enforcement measures may be scrutinized for being too vague or stringent, leading to potential conflicts within the industry.