Senate Commerce Committee Statement to Senate Committee Substitute, Nos. 1193 and 1197 (March 16, 2026)

Summary

A Senate Commerce Committee statement to the Senate on the Senate Committee Substitute for Senate Bill Nos. 1193 and 1197, State of New Jersey, dated March 16, 2026, reporting the substitute favorably. The substitute prohibits a third-party restaurant reservation service from advertising, listing, promoting or selling reservations for a food service establishment without a written agreement with that establishment. Violations carry a civil penalty not to exceed $500 for each violation, accruing daily for each establishment. Persons charged fees and affected food service establishments may bring a civil action in the Superior Court for injunctive relief, actual damages, attorney's fees and costs, within one year after the alleged violation. The statement says the substitute is modeled after legislation enacted by Illinois.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE
FOR

SENATE, Nos.
1193 and 1197

STATE
OF NEW JERSEY

DATED: MARCH
16, 2026

The Senate Commerce Committee reports favorably Senate
Committee Substitute for Senate Bill Nos. 1193 and 1197.

This substitute prohibits the unauthorized arrangement
by a third-party restaurant reservation service to advertise, list, promote, or
sell reservations for a food service establishment without a written agreement
between the third-party restaurant reservation service and the food service
establishment. The substitute defines “food service establishment” as a place
where food is provided for individual portion service directly to the consumer
whether that food is provided free of charge or sold, and whether consumption
occurs on or off the premises or is provided from a pushcart, stand, or
vehicle. “Third-party restaurant reservation service” is defined as a website,
mobile application, or other internet service that: offers or arranges for
reserving on-premises service for a customer at a food service establishment;
and that is owned and operated by a person other than the person who owns the
food service establishment.

The substitute provides that any person who violates
its provisions is subject to a civil penalty that will not exceed $500 for each
violation, and that a violation by a third-party restaurant reservation service
will accrue on a daily basis for each day and for each food service
establishment with respect to which a violation of the substitute was
committed. Any person charged fees by a third-party restaurant reservation
service for a reservation advertised, listed, promoted, or sold in violation of
the substitute, or food service establishment which a third-party restaurant
reservation service advertised, listed, promoted, or sold a reservation in
violation of the substitute’s provisions, may bring a civil action in the
Superior Court for:

(1) injunctive relief to restrain or enjoin any
activity in violation of the substitute;

(2) in the case of a person, actual damages not to
exceed the total fees collected by the third-party restaurant reservation
service in violation of the bill or, in the case of a food service
establishment, actual damages as a result of reservations made by the
third-party reservation service that remained unfilled;

(3) attorney's fees and costs; and

(4) any other remedy as the court may deem
appropriate.

The substitute provides that any action alleging a
violation is required to be brought within one year after the alleged violation
of the substitute occurs.

This substitute is modeled after legislation enacted
by Illinois prohibiting a third-party restaurant reservation service from
listing, advertising, promoting, or selling reservations for a food service
establishment without a written agreement between the third-party restaurant
reservation service and the food service establishment.

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