June 23, 2021 (WASHINGTON): In response to the New York City Council’s announced intention to pass Int. 2311 – Personal Data on orders placed through third-party food delivery services – tomorrow, Connected Commerce Council (3C) President Jake Ward released the following statement.
“Int. 2311 is a terrible idea executed poorly. American small business owners know better than anyone the importance of respecting your customers and keeping your word. Forcing the delivery service platforms that saved tens of thousands of New York City restaurants during the pandemic to change their privacy policies and expose their customers’ data to restaurants that don’t know how to secure it is bad policy, creates risks for those restaurants that far outweigh the gains, and goes against everything small businesses stand for.”
On behalf of 3C and its members, Ward recently participated in a working group of data privacy experts and consumer advocates to consider Int. 2311’s implications. That group released its report today highlighting the damage Int. 2311 would do to consumer privacy, the threat of legal and regulatory liability for small businesses, and acute risk for minority-owned small businesses at greater risk of being put out of business by a data breach.
“Only 14% of small businesses are trained to protect data, and 60% of small businesses close within six months of a hack. The risks are even higher for minority businesses, as a United States Black Chambers study found, 98% of black businesses close their doors after being hacked. Passing laws that give independent neighborhood restaurants access to personal consumer data, regardless of whether or not they are capable of securing it, will benefit Russian hackers far more than New York City restaurants.”