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The basics:

• NJ bans unauthorized restaurant reservation resales
• Third-party sellers now need restaurant approval
• Violators face fines up to $500 per violation
• Law targets reservation scalping before World Cup 2026

New Jersey is taking steps to protect restaurants and customers from the unauthorized selling of reservations by third-party services.

Under the new law, reservations cannot be advertised, listed or sold unless there’s a written agreement with a restaurant. Gov. Mikie Sherrill signed the bill May 7.

The legislation also establishes civil penalties of up to $500 per violation. Penalties accrue daily for each affected food service establishment. According to the law, restaurants and consumers harmed by unauthorized listings will also be able to seek injunctive relief and damages in Superior Court.

The bipartisan measure aims to prevent outside services from profiting off restaurants without consent or transparency, sponsors said.

On the third-party reservation marketplace, patrons can book tables and resell them without a restaurant’s permission. This can often result in inflated prices for consumers during peak-demand times. It can also lead to high no-show or last-minute cancellation rates, which leave eateries with empty seats and lost revenue.

Several states, including New York, Illinois and California, passed laws targeting reservation “scalping.”

State Sen. Kristin Corrado, R-40th District, shared, “We’ve seen reservation scalping during major sporting events around the country and as New Jersey prepares to host the World Cup, we’re taking action to prevent that from occurring here in the Garden State.”

“Third-party reservation brokers have sold tables that they do not own for outrageous prices, often without the knowledge of a restaurant or small business. This new law protects patrons from price-gouging and ensures that the benefit of major events goes to our local businesses, not opportunistic middlemen,” she said.

We’ve seen reservation scalping during major sporting events around the country and as New Jersey prepares to host the World Cup, we’re taking action to prevent that from occurring here in the Garden State.
—State Sen. Kristin Corrado, R-40th District

Off the menu

The measure passed unanimously in the state Assembly and Senate at the end of March. A broad coalition of restaurant, retail and business groups also backed the legislation. Supporters include New Jersey Restaurant & Hospitality Association, New Jersey Food Council and New Jersey Business & Industry Association.

Assemblywoman Katie Brennan, D-32nd District, added, “Our local restaurants work hard to build relationships with their customers, and they shouldn’t have to worry about outside companies using their business without permission. Through this bill, we’re making sure these owners remain in control of how their business is represented online while giving customers peace of mind that the reservations they are booking are legitimate.”

Assemblyman Clinton Calabrese, D-36th District, stated, “When someone makes a dining reservation, they are placing their trust in the restaurant and in whoever facilitates that booking that their table will be available. But when an unauthorized third party makes promises it has no obligation to honor, it is the patron who is left without a table, and the restaurant that is left to manage a situation entirely outside of its control.”

“This bill would ensure that businesses are not left holding the bag for promises they didn’t make. Instead, the legislation would put the responsibility on whoever arranged the booking,” he said.

Sen. Joseph Lagana, D-38th District, and Assemblyman William Sampson, D-31st District, joined Brennan, Corrado and Calabrese as bill sponsors.