California lawmakers are taking aim at a growing problem in the restaurant industry: unauthorized reservation resales. Assembly Bill 1245, introduced by Assembly Member Catherine Stefani (D-San Francisco), seeks to ban third-party platforms from selling restaurant reservations without permission. The proposed law is designed to prevent fraudulent resales that leave restaurants dealing with no-shows and frustrated customers.
“AB 1245 will crack down on the predatory practice of reservation scalping, which not only deceives consumers but also exploits our local restaurants who are still struggling to recover from the pandemic,” Stefani stated.
If passed, California would join other states, like New York, in cracking down on reservation scalping, which has increasingly become a concern for restaurant owners.
The Problem with Reservation Resales
In recent years, reservation scalping has created chaos in the dining industry. Bots and individuals quickly secure high-demand reservations at popular restaurants, only to resell them at a premium on unauthorized websites. Customers who unknowingly purchase these reservations may arrive at a restaurant only to find their booking doesn’t exist or has been canceled.
For restaurant owners, these fraudulent reservations often result in empty tables and lost revenue. When people don’t show up for bookings they never made directly, it throws off operations and leads to financial losses.
Stefani and other supporters of AB 1245 argue that reservation scalping not only misleads customers but also adds unnecessary stress to an industry that is still recovering from the pandemic.
A Nationwide Push for Change
California is not the first state to address this issue. In December, New York enacted a similar law prohibiting third-party websites from reselling restaurant reservations without permission. The push for regulation has been largely backed by major reservation platforms such as OpenTable, Resy, and Tock, which work directly with restaurants to manage bookings.
These companies have also played a role in advocating for similar legislation in other states, including Florida, Illinois, Hawaii, and Nevada. Their goal is to protect restaurant owners from fraudulent bookings and ensure a fair system for customers seeking reservations.
“This bill is truly meaningful for California restaurants and will help protect their bottom lines by reducing the ‘no shows’ caused by fraudulent reservations,” said OpenTable CEO Debby Soo. “We’re happy to see the state take a powerful stance to support its restaurants.”
The California Restaurant Association and the Golden Gate Restaurant Association, which represents San Francisco’s dining establishments, have also expressed strong support for the bill.
“Restaurants should have the right to offer reservations in the manner they choose, whether it is over the phone, directly on their website, or through a reservation platform,” the Golden Gate Restaurant Association stated. “We think that this sensible legislation will be embraced by our restaurant community.”
How the Law Would Work
If AB 1245 is enacted, enforcement would be primarily complaint-driven. Restaurant owners, customers, and state officials would have the authority to take action against unauthorized reservation resellers.
The bill would allow the California Attorney General to impose penalties of up to $1,000 per violation, with collected fines deposited into the State Treasury to support enforcement efforts. Individuals who purchase fraudulent reservations or restaurant owners affected by these scams could also take legal action.
Assembly Member Josh Lowenthal (D-Long Beach) has co-authored the bill, which is scheduled to be reviewed in Assembly policy committees later this spring.
A Step Toward Fairness in Dining
For many restaurant owners, the passage of AB 1245 would be a welcome relief. Unauthorized reservation resales disrupt operations, create financial uncertainty, and lead to negative customer experiences. By giving restaurants more control over their bookings, the bill aims to create a fairer, more transparent system.
With growing momentum behind efforts to curb reservation scalping nationwide, California’s proposed legislation could set a precedent for other states considering similar measures. If passed, the law would ensure that restaurant reservations remain a fair and accessible process for both businesses and diners alike.
