Philly is trying to crack down on reservation scalpers
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Illustration: Aïda Amer/Axios
Philly lawmakers are serving up what some consider just desserts: a ban on so-called reservation scalpers.
Why it matters: The new digital hustle has made it harder for weary diners to get tables at some of the city's hottest restaurants.
- The push comes as the Michelin Guide is set to release its star ratings of city restaurants later this month.
The big picture: Some cities have already taken steps to curb online scalpers that have created a lucrative black market by snapping up reservations and reselling them online at hiked-up prices.
- Dining and hospitality advocates argue that restaurants are seeing more empty tables and losing revenue because some reservations aren't selling or diners are no-showing the bookings.
State of play: Councilmember Isaiah Thomas introduced the bill last month, saying the city had to do something to protect restaurants from the "predatory" practice.
- The proposal advanced out of committee Wednesday, and will go before the full council next week.
- Lawmakers must vote to formally adopt the bill before sending it to Mayor Cherelle Parker's desk.
Zoom in: The bill, modeled after New York's law, would require reservation scalpers to seek explicit permission from restaurants before listing their reservations for sale.
- Restaurants would have to report potential violations to the city's Department of Licenses and Inspections, Philly's director of zoning and legislation, Sarah Adamo, said during Wednesday's hearing.
- They'd face a $1,000 fine for each violation. Adamo recommended strengthening the law by also fining resellers for failing to maintain records on the transactions.
What they're saying: Many restaurants aren't notified about the third-party bookings, causing chaos and confusion that can impact the eateries' reputations, local chef and restaurateur Chris D'Ambro told lawmakers at the hearing.
- The legislation "gives a small business back control of their operations" before the problem worsens, Ben Fileccia of the Pennsylvania Restaurant & Lodging Association said at the hearing.
The other side: Resellers like Appointment Trader have argued bans like the proposed one in Philly needlessly target their businesses.
- The platform told the Inquirer it already limits the number of reservations that can be uploaded to its site and shuts down accounts if they're unable to sell at least half their reservations.
What we're watching: Thomas' office tells Axios it's hopeful the law will be approved before next year's busy slate of events, including the World Cup and MLB All-Star game.