California State Assembly Passes Bill to Crack Down on Black Market for Restaurant Reservations

SACRAMENTO - The California State Assembly passed AB 1640, the California Restaurant Reservation Anti-Piracy Act, authored by Assemblymember Catherine Stefani (D-San Francisco), to crack down on the growing black market for restaurant reservations.

The bill prohibits the unauthorized sale or transfer of restaurant reservations for profit without the restaurant's consent. Sponsored by the California Restaurant Association, AB 1640 protects diners from deceptive markups and gives restaurants new tools to fight fake bookings, no-shows, and lost revenue.

"No one should have to pay a scalper for a dinner reservation that was meant to be free," said Assemblymember Catherine Stefani. "Bad actors are using bots and online marketplaces to scoop up reservations, create artificial scarcity, and sell access to restaurants without their knowledge or consent. That hurts diners, it hurts small businesses, and it hurts the workers who depend on full dining rooms."

AB 1640 builds on Assemblymember Stefani's AB 1245, introduced last year, which first sought to address the rise of reservation scalping in California. This year's bill continues that work with a targeted enforcement framework to stop unauthorized reservation reselling and protect the integrity of the dining experience.

In recent years, third-party resellers have used bots and other tactics to secure hard-to-get reservations at popular restaurants, then resell them online at inflated prices. These schemes often happen without the restaurant's knowledge, leaving diners confused and restaurants dealing with empty tables, duplicate bookings, and last-minute cancellations.

"AB 1640 is a sensible measure that protects restaurants from operational disruptions (resulting from restaurant reservation piracy), lost sales, and deceptive practices while, at the same time, removing artificial financial barriers for entry and providing equal access to all members of the community," said Matt Sutton, Senior Vice President of Government Affairs & Public Policy for the California Restaurant Association. "The CRA appreciates Assemblywoman Stefani's partnership in ending this practice and bringing transparency and consent to the table."

Restaurants already operate on thin margins. A single empty table can mean lost revenue for the business and lost tips for workers. When reservations are hoarded, resold, or abandoned, restaurants are left to absorb the cost.

"OpenTable is proud to support this bill to help safeguard California restaurants from the harmful impacts of reservation fraud," said Debby Soo, CEO of OpenTable. "We commend the bill's sponsors and the Assembly for taking decisive action on an issue critical to the integrity of the restaurant ecosystem."

AB 1640 authorizes the Attorney General to bring enforcement actions against unauthorized reservation resellers and seek civil penalties of up to $1,000 for each illegal booking.

"Resy proudly supports this legislation created to help combat reservation fraud and protect restaurants from abusive booking practices," said Pablo Rivero, CEO of Resy and Head of American Express Global Dining. "This bill represents an important step toward preserving the integrity of the reservation process and creating a more reliable experience for both restaurants and diners."

AB 1640 now heads to the California State Senate.

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