New Jersey lawmakers move to ban resale of restaurant reservations without permission

TRENTON, N.J. (WPVI) -- Scoring a reservation at a popular restaurant could soon become simpler and cheaper in New Jersey.

State lawmakers have unanimously passed a bill aimed at stopping third-party websites from reselling restaurant reservations without permission, a practice supporters say drives up costs for diners and hurts small businesses.

"We want to make sure you're able to safely get the accommodations you deserve to get, and those are not being frauded out of extra money," said state Assemblywoman Carol Murphy.

Murphy says that is happening on websites where users can buy and sell restaurant reservations, doctor appointments, concert tickets and other bookings.

Under the bill, reselling restaurant reservations without a restaurant's consent would be prohibited. Those who violate the law could face $500 fines per day, per listing. The measure also allows restaurants and customers to sue.

Daniel Klim, president and CEO of the New Jersey Restaurant and Hospitality Association, said the practice can leave restaurants with empty tables during peak hours.

"And so what happens is, if you have one of these companies who come in and take the reservation, and it doesn't sell it, or it doesn't get the price it wants for it, well, that table is now open in the restaurant, and that small business or that restaurateur may lose out on that seating, or having that seat filled at that time," Klim said. "And that time could be a popular Friday or Saturday night spot."

The New Jersey Restaurant and Hospitality Association says the issue is especially important as the state prepares to welcome visitors for America's 250th birthday.

The bill now heads to Gov. Sherill's desk for consideration.