- Potential benefitGives restaurants control over who can list and sell their reservations, reducing unauthorized bookings.
- Potential benefitProhibits indemnity clauses shifting liability to restaurants for third-party-initiated harms, protecting restaurants'…
- Federal agenciesCreates an FTC enforcement pathway, enabling civil penalties and federal oversight against noncompliant services.
SEAT Act of 2025
Referred to the House Committee on Energy and Commerce.
The bill (SEAT Act of 2025) requires third-party restaurant reservation services to have a written agreement with a food service establishment or its contractual designee before listing, promoting, selling, or otherwise making reservations available. Violations are deemed unfair or deceptive practices enforceable by the Federal Trade Commission with the same powers and penalties under the FTC Act.
Liberals emphasize protecting small businesses and banning one-sided clauses
Relative to its intended legislative type, this bill is a focused substantive regulatory change that is generally well-structured: it sets a clear prohibition, supplies definitions, voids certain contractual provisions, and delegates enforcement to the FTC under the FTC Act with a 180-day delayed effective date.
The bill (SEAT Act of 2025) requires third-party restaurant reservation services to have a written agreement with a food service establishment or its contractual designee before listing, promoting, selling, or otherwise making reservations available.
Violations are deemed unfair or deceptive practices enforceable by the Federal Trade Commission with the same powers and penalties under the FTC Act.
The law forbids contract provisions that force restaurants to indemnify reservation services for harms caused by the service.
Targeted, administrable reform with modest fiscal footprint but strong platform stakeholders and litigation risk lower enactment probability.
Relative to its intended legislative type, this bill is a focused substantive regulatory change that is generally well-structured: it sets a clear prohibition, supplies definitions, voids certain contractual provisions, and delegates enforcement to the FTC under the FTC Act with a 180-day delayed effective date.
Liberals emphasize protecting small businesses and banning one-sided clauses
Who stands to gain, and who may push back.
These are examples from the analysis, not a ranked list of the most-affected groups.
- ConsumersCould reduce consumer convenience by restricting consolidated search across multiple reservation sources.
- Potential burdenMay increase compliance costs for reservation platforms, especially startups, raising regulatory burden.
- Potential burdenCould decrease competition and innovation in reservation services if agreements favor incumbent platforms.
Why the argument around this bill splits.
Liberals emphasize protecting small businesses and banning one-sided clauses
Generally favorable: sees the bill as protecting small and independent restaurants from platform overreach and nonconsensual listings.
Views the FTC enforcement and prohibition of indemnification as necessary consumer and business protections.
Might still want clearer provisions protecting consumers and workers from unintended harms.
Cautiously supportive: appreciates clarifying contractual rights and preventing exploitative platform practices.
Wants to balance restaurant control with consumer convenience and minimize regulatory complexity.
Seeks implementation details and phased compliance to limit small business burdens.
Mixed to mildly supportive: favors protecting restaurants' control over reservations and limiting platform freeloading.
Worries about expanding FTC enforcement authority and federal interference in private contracts.
Concerned that banning indemnities and imposing federal rules may hinder voluntary private contracting and innovation.
The path through Congress.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Targeted, administrable reform with modest fiscal footprint but strong platform stakeholders and litigation risk lower enactment probability.
- No cost estimate or CBO score provided
- Potential litigation over what constitutes a valid 'written agreement'
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
Go deeper than the headline read.
Liberals emphasize protecting small businesses and banning one-sided clauses
Targeted, administrable reform with modest fiscal footprint but strong platform stakeholders and litigation risk lower enactment probabilit…
Relative to its intended legislative type, this bill is a focused substantive regulatory change that is generally well-structured: it sets a clear prohibition, supplies definitions, voids certain contractual provisions,…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.