Key takeaways: New York City is restricting data sharing through grocery delivery apps | Fox Rothschild LLP

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New York City has passed a law restricting the exchange of data through grocery delivery apps and hospitality businesses.

What does that mean?

Here are some key takeaways:

  • A third-party grocery delivery service may not disclose customer information that applies to an online order if that customer requests that such information not be disclosed in relation to such an online order.
  • It is presumed that the customer has consented to the disclosure of this customer data for all online orders, unless this customer has made such a request in relation to a specific online order.
  • The third-party grocery delivery service must provide a conspicuous way on its website for a customer to make such a request and clearly disclose to the customer the customer data that may be shared with the grocery provider and identify the food service company that the Executes online order of the customer as recipient of this data.
  • Third-party grocery delivery services that share customer data must provide the data at least monthly in a machine-readable format, broken down by customer.
  • Catering establishments that receive customer data may not sell, rent or pass on this customer data to third parties for financial benefit, except with the express consent of the customer from whom the customer data was collected. They must also enable the customers to withdraw their consent to the use of the data by the catering establishment and must enable the customers to request and obtain the deletion of their customer data.
  • This does not apply to telephone orders.

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