<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0vbluF_1GZJtYcR00" alt="https://img.particlenews.com/image.php?url=0vbluF_1GZJtYcR00" width="1600" height="655" ></figure>On September 27, 2026, Governor Newsom signed Assembly Bill 1640, the California Restaurant Reservation Anti-Piracy Act, which was sponsored by the California Restaurant Association. The bill was passed with strong bipartisan support. It passed the California State Assembly and State Senate unanimously.The law takes effect on January 1, 2027 and prohibits a person from selling a restaurant reservation for more than the amount they paid, unless they have express written authorization from the restaurant. It gives restaurants a legal basis to stop third parties from profiting off their dining rooms, and a path to recover damages and attorney’s fees when they do.AB 1640 adds Chapter 22.4.5 to the Business and Professions Code. Section 22599.9 prohibits any person from selling or transferring a restaurant reservation, or facilitating a sale or transfer, for more than the person paid to obtain it. The single exception applies when the seller holds a written agreement with the restaurant that “expressly authorizes the person to charge the higher amount.”The prohibition reaches anyone who sells, transfers, or facilitates an unauthorized restaurant reservation at a higher price than the seller paid. That language gives restaurants a basis to pursue resale marketplaces, and the individual operators and “concierges” who list on them.Section 22599.8 defines a “restaurant” as retail food establishment in California that prepares, serves, and vends food directly to customers. Under the written agreement exception, a restaurant may partner with a platform or concierge service and authorize premium pricing, provided the agreement expressly permits the higher price. Restaurants may also continue to sell their own tables through deposits, prepaid tasting menus, or ticketed seatings. The law regulates resale above cost, and the original sale remains up to the discretion of the restaurant to price.Section 22599.10 provides two tracks for enforcement: public and private. In terms of public enforcement, the state Attorney General’s office, a county counsel, or a city attorney may sue for civil penalties of up to $1,000 per violation, plus injunctive relief and attorney’s fees. Additionally, any person or entity that suffers actual harm may sue for actual damages, attorney’s fees and costs, and injunctive or declaratory relief. The fee-shifting component is significant, but a plaintiff would only recover that after prevailing at trial. Notably, New York previously enacted its own Restaurant Reservation Anti-Piracy Act, effective February 17, 2025. The New York law takes a stricter approach. It prohibits third parties from listing or selling a restaurant’s reservations at all without a written agreement, regardless of price, and imposes penalties of up to $1,000 per violation per day. Other jurisdictions may follow with similar legislation.<img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=3aQ4g4_1GZJtYcR00" alt="https://img.particlenews.com/image.php?url=3aQ4g4_1GZJtYcR00" width="650" height="650" ><h2>Pooja S. Nair</h2>A partner at Ervin Cohen &amp; Jessup LLP, Pooja S. Nair is a business litigator and problem solver with a focus on the food and beverage sector. She advises food and beverage clients, startups and other businesses on a comprehensive range of issues, including employment, trade secrets, partnership disputes, contract negotiations and intellectual property.Nair focuses on finding creative, long-term solutions to the business problems affecting companies of all sizes, from startups to publicly traded entities. She combines litigation experience with a strategic perspective, so that legal decisions make sense on a business level.Prior to joining ECJ, Nair practiced at TroyGould, where she was the head of the Food and Beverage practice group. She also spent five years at Foley &amp; Lardner focused on white collar criminal defense and internal investigations.</div></body>

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On September 27, 2026, Governor Newsom signed Assembly Bill 1640, the California Restaurant Reservation Anti-Piracy Act, which was sponsored by the California Restaurant Association. The bill was passed with strong bipartisan support. It passed the California State Assembly and State Senate unanimously. The law takes effect on January 1, 2027...

California Targets Scalping with Reservation Anti-Piracy Act

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On September 27, 2026, Governor Newsom signed Assembly Bill 1640, the California Restaurant Reservation Anti-Piracy Act, which was sponsored by the Califor

California Targets Scalping with Reservation Anti-Piracy Act

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