Overview

Title

To prohibit third-party restaurant reservation services from offering or arranging unauthorized reservations for food service establishments, and for other purposes.

ELI5 AI

The SEAT Act of 2024 is a new rule that says companies helping people make restaurant reservations must get permission from the restaurant first. If they don’t follow this rule, the government can step in and say that isn’t fair.

Summary AI

H.R. 9601, also known as the “Supporting Equal Access to Tables Act of 2024” or the “SEAT Act of 2024,” aims to regulate third-party restaurant reservation services. This bill mandates that such services can only offer reservations for food service establishments if they have a written agreement with those establishments. The Federal Trade Commission will enforce violations of this act as unfair or deceptive practices, applying the same regulations and penalties as under the existing Federal Trade Commission Act. Additionally, the bill prohibits agreements that require restaurants to indemnify reservation services for damages caused by those services, deeming such clauses void and unenforceable.

Published

2024-09-16
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-09-16
Package ID: BILLS-118hr9601ih

Bill Statistics

Size

Sections:
2
Words:
787
Pages:
4
Sentences:
19

Language

Nouns: 267
Verbs: 66
Adjectives: 53
Adverbs: 4
Numbers: 18
Entities: 34

Complexity

Average Token Length:
4.54
Average Sentence Length:
41.42
Token Entropy:
5.00
Readability (ARI):
24.16

AnalysisAI

The Supporting Equal Access to Tables Act of 2024 (SEAT Act of 2024) seeks to regulate the practices of third-party restaurant reservation services. The bill prohibits these services from listing or promoting restaurant reservations without a formal agreement with the food service establishment. It empowers the Federal Trade Commission (FTC) to enforce these rules, applying them 180 days after the bill's enactment. The legislation aims to ensure that all reservations made through such services are authorized by the establishments themselves, thereby enhancing transparency and fairness in the dining industry.

Summary of Significant Issues

One of the primary concerns is the reliance on the Federal Trade Commission for enforcement, which may not be specifically equipped to handle the unique challenges posed by third-party reservation services. This could lead to ineffective oversight and inconsistent application of the law. Additionally, the bill does not specify penalties for violators, further complicating enforcement efforts.

Another critical issue is the broad definition of "food service establishment," which encompasses a wide range of entities, including potentially unintended ones like temporary event vendors. This broad scope could lead to legal disputes and regulatory overreach. Furthermore, the bill lacks clarity on what constitutes a proper "written agreement" between third-party services and establishments, introducing potential compliance challenges.

The 180-day compliance window may also be unrealistic for some service providers, who might struggle to renegotiate agreements with all their listed establishments, possibly resulting in operational disruptions. Lastly, the bill does not address jurisdictional conflicts that could arise if a service operates across state lines, posing regulatory challenges.

Potential Impact on the Public

For the general public, the bill seeks to guarantee that all reservations made through third-party services are legitimate and authorized by the restaurants themselves. This could lead to a more straightforward and trustworthy reservation process for diners, potentially reducing instances of overbooking or unrecognized reservations at establishments.

Impact on Stakeholders

For restaurants and food service establishments, the bill could ensure greater control over their reservations, preventing unauthorized listings that might mislead customers or cause operational hiccups. However, smaller establishments might face challenges in negotiating agreements with third-party services, particularly if they lack legal expertise.

For third-party reservation services, the bill introduces compliance burdens, as they will need to secure formal agreements with every establishment they list. This could require significant administrative efforts, particularly for smaller services with limited resources. The absence of clear guidelines on penalties and cross-jurisdictional operations could create additional complications.

For customers, the legislation promises increased reliability and legitimacy in reservation systems but may result in fewer available options if some third-party services find compliance overly burdensome and reduce their listings.

Overall, while the SEAT Act of 2024 aims to foster fairness and transparency in the restaurant reservation industry, its broad definitions and enforcement mechanisms may pose challenges that could affect various stakeholders differently. The details of enforcement and compliance clarity will be crucial in determining the effectiveness of the bill in practice.

Issues

  • The reliance on the Federal Trade Commission Act for enforcement may be insufficiently tailored to address the specific nuances of third-party restaurant reservation services, potentially causing ineffective regulation and enforcement inconsistencies. (Section 2(b))

  • The definition of 'food service establishment' is overly broad and might unintentionally include entities not intended to be covered, such as temporary event vendors or private dining clubs, leading to potential overreach and legal disputes. (Section 2(e)(2))

  • The section lacks specificity on what constitutes a 'written agreement' between third-party services and food service establishments, which may result in legal ambiguities and compliance challenges. (Section 2(a))

  • The bill does not clarify the specific penalties for violations, possibly leading to inconsistent or insufficient enforcement measures against non-compliant third-party reservation services. (Section 2(b)(2))

  • The lead time of 180 days for compliance might be insufficient for some providers to renegotiate agreements with all listed establishments, potentially causing operational challenges and compliance failures. (Section 2(c))

  • Possible jurisdictional conflicts are not addressed, which may arise if a third-party reservation service operates across state lines, leading to regulatory complications. (General issue related to Section 2)

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of the Act states that the official name of this legislation is the "Supporting Equal Access to Tables Act of 2024," or simply the "SEAT Act of 2024."

2. Limitation on third-party restaurant reservation services Read Opens in new tab

Summary AI

A third-party restaurant reservation service can only list or promote reservations for a food service establishment if they have a written agreement with the establishment. This rule is enforced by the Federal Trade Commission, treating violations as unfair or deceptive acts, and applies 180 days after the law is enacted. Any clause in the agreement that makes the food service indemnify the reservation service for damages is not allowed.