Congress moves to curb restaurant reservation platform power
H.R. 3403 — SEAT Act of 2025 · Filed by Nancy Mace (R-SC) · 2 cosponsors · Introduced May 14, 2025 · Referred to committee
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What it does
This bill requires third-party restaurant reservation platforms (like OpenTable, Resy, etc.) to obtain written permission from restaurants before listing or selling their reservations. It treats violations as unfair trade practices enforceable by the FTC, and voids any contract clause forcing restaurants to indemnify the reservation service for the service's own negligence or misconduct. The bill takes effect 180 days after enactment.
Why we flagged it
The bill's operative mechanism is a licensing/authorization requirement for third-party reservation platforms, coupled with liability shield for restaurants. It is fundamentally a regulatory constraint on platform business models, not a consumer protection or public-safety measure, despite the framing around 'equal access.'
What the text implies
- Platforms may respond by requiring exclusive contracts or higher commission rates from restaurants to justify the cost of obtaining authorization, potentially raising consumer prices.
- Small restaurants with limited negotiating power may face pressure to accept unfavorable terms from dominant platforms or lose online visibility.
The full analysis lists 4 implications of this text.
Who stands to gain
Independent and regional restaurant groups; Restaurant industry associations; Smaller restaurant chains with negotiating leverage