On February 10, 2025, the Hawaii Senate introduced SB102, a legislative bill aimed at regulating third-party restaurant reservation services. This bill seeks to address growing concerns among local restaurants regarding unauthorized reservations and the associated fees charged by these services without the restaurants' consent.

The primary provision of SB102 prohibits third-party reservation platforms from listing or selling reservations for restaurants unless there is a written agreement from the restaurant. This measure is designed to empower restaurants, ensuring they have control over their reservation systems and the fees they incur. Additionally, the bill stipulates that any agreement cannot require restaurants to indemnify these services for any harm caused by their actions, thereby protecting restaurants from potential liabilities.

A significant aspect of the bill is its enforcement mechanism. It allows individuals charged fees by unauthorized reservation services to file civil actions for injunctive relief, actual damages, and recovery of attorneys' fees. This provision aims to deter third-party services from operating without proper authorization and provides a clear path for restaurants and consumers to seek justice.

The introduction of SB102 has sparked debates among stakeholders. Supporters argue that it levels the playing field for local restaurants, many of which struggle against larger, established reservation platforms that often operate without transparency. Critics, however, express concerns about the potential impact on consumer choice and the operational challenges that may arise for third-party services that rely on a broader market reach.

Economically, the bill could have significant implications for the restaurant industry in Hawaii. By regulating third-party services, it may help local establishments retain more revenue and foster a more equitable business environment. However, it could also lead to increased operational costs for these services, which may ultimately be passed on to consumers.

As the bill progresses through the legislative process, its future remains uncertain. Experts suggest that if passed, SB102 could set a precedent for similar regulations in other states, reflecting a growing trend of local governments seeking to protect small businesses from the influence of larger digital platforms. The bill is set to take effect on July 1, 2050, allowing time for stakeholders to adapt to the new regulations and for further discussions to unfold.

In summary, SB102 represents a significant step towards regulating the relationship between restaurants and third-party reservation services, with potential long-term effects on the industry and consumer practices in Hawaii. As discussions continue, the outcome of this bill will be closely watched by both supporters and opponents alike.