California reservation resale law: a 2027 checklist

What happened

On September 27, 2026, the governor approved California Assembly Bill 1640, the California Restaurant Reservation Anti-Piracy Act. The Secretary of State chaptered it the same day as Chapter 475, Statutes of 2026, according to the CalMatters Digital Democracy bill record. The bill had passed the Senate in late August, and on August 28 the Assembly approved the Senate's amendments 78 to 0.

The California Restaurant Association sponsored the bill, and Assemblymember Catherine Stefani (D-San Francisco) wrote it. When it cleared the Assembly in May, Stefani said: "No one should have to pay a scalper for a dinner reservation that was meant to be free." Matt Sutton of the CRA called it "a sensible measure that protects restaurants from operational disruptions."

In its October 2 roundup of signed bills, the California Employment Law Report says new laws on its list take effect January 1, 2027 unless it notes otherwise. It notes no different date for AB 1640. It also suggests restaurants update their online booking terms before that date and train hosts to document suspected resales.

What the enacted law actually says

The final version differs from the Assembly version. The May press release described the bill as a ban on reselling reservations "for profit without the restaurant's consent." The Digital Democracy summary of the enacted bill describes a price-based rule:

• The prohibition: a person may not sell or transfer a restaurant reservation, or facilitate its sale or transfer, for more than the person paid to acquire it.
• The exception: the rule does not apply when the person has a written agreement with the restaurant that expressly authorizes the higher price.
• Public enforcement: the Attorney General, a county counsel or a city attorney can sue for a civil penalty of up to $1,000 per violation, plus injunctive or declaratory relief and reasonable attorney's fees.
• Private enforcement: a person or entity that suffers actual harm can sue for actual damages, attorney's fees and costs, injunctive or declaratory relief, and other relief the court finds proper.
• Who counts as a restaurant: a retail food establishment in California that prepares, serves and sells food directly to customers.

The Senate analysis quoted in the same record says resales at the original cost remain allowed. It also gives the scale of the problem: for one Sacramento restaurant, a resale site showed a suggested bid of $574 and a "hot zone" of $1,003 to $3,933. According to the analysis, New York passed a similar law in 2024, and Florida, Illinois, Louisiana and Nevada passed similar laws in 2025.

The "more than you paid" test, with worked examples

The enacted rule turns on one comparison: the resale price against the amount the seller paid to get the reservation. This table applies it to common booking setups. It is a plain-English reading of the bill summary, not legal advice. Ask your own counsel about edge cases.

Under this rule, any paid resale of a free reservation exceeds what the seller paid. For most restaurants that take free online bookings, the practical question is not whether a resale is legal but whether you can spot one and document it.

Here is how the penalty adds up. The cap is up to $1,000 per violation, so a reseller that listed ten of your Saturday tables could face up to $10,000 in civil penalties if a court counted each listing as one violation. Civil penalties go to the government, not to the restaurant; penalties recovered by the Attorney General are deposited in the state's Public Rights Law Enforcement Special Fund. Any money a restaurant recovers comes through the separate private claim, which requires actual harm. For that claim, your records of empty tables, wasted prep and lost covers become evidence.

What to do before January 1, 2027

1. Update your booking terms

• Add a short line to your online booking confirmation and terms page saying that reservations may not be resold above their cost under California law, and naming the act.
• State your own transfer policy: whether guests may hand a booking to someone else, and whether a name change requires contacting you. The law sets a minimum; your own policy can be clearer.
• For prepaid or deposit bookings, show the amount paid on the confirmation. That number becomes the ceiling in the price test, so it should be easy to prove.

2. Sort out your written agreements

• List every channel that can sell or price your tables above cost: ticketed events, prepaid experiences, concierge services, priority-access programs.
• For each one, check whether a written agreement expressly authorizes the higher price. If it is only a handshake or an email thread, put it in a signed document. The exception depends on the agreement being written and express.
• Keep copies with your other vendor contracts so you can produce them quickly.

3. Build a resale evidence log at the host stand

The Employment Law Report suggests training hosts to document suspected resales. A simple log works if it is filled in every time:

• Date and time of the booking, party size, and the name it was made under.
• Name and phone number of the guest who arrived, and whether they differ from the booking.
• Whether the guest mentions paying a third party, plus a screenshot of any listing staff find.
• The outcome: seated, no-show, or turned away. For a no-show, record the covers lost.

Hosts should record what the guest says, not accuse them. The arriving guest may have been charged by a reseller and may also count as a harmed party under the law.

4. Tighten the booking patterns resellers use

• Watch for the same phone number or email booking several prime slots across different names.
• Use reconfirmation messages for your hardest-to-get slots, so a booking held by someone who never plans to show up gets released back to real guests.
• For high-demand nights, consider a modest deposit. Besides discouraging no-shows, it puts a clear "amount paid" on record for the price test.

If you operate outside California

The legislative analysis says several other states have passed similar laws, but the rules differ from state to state. California's version is a price test with a written-agreement exception. The analysis notes only that New York passed its law in 2024 (it took effect in 2025) and that four other states followed in 2025; it does not say whether their rules match California's. If you run locations in more than one state, read each state's law separately rather than assuming one checklist covers them all.

The short version

From January 1, 2027, a California reservation cannot be resold for more than the seller paid for it unless the restaurant has authorized the higher price in writing. Before then, put the rule in your booking terms, sign written agreements with any partner that prices tables above cost, show deposit amounts on confirmations, and give hosts a simple log for suspected resales.

Frequently asked questions

When does California's restaurant reservation resale law take effect?

AB 1640 was approved and chaptered on September 27, 2026. A California Employment Law Report roundup of signed bills says the laws on its list take effect January 1, 2027 unless noted, and it notes no different date for AB 1640.

Can a guest give their reservation to a friend?

Under the enacted rule, a transfer is banned only when the price is above what the person paid. A free handoff, or a deposit booking passed on at the original deposit amount, does not exceed that cost. Your own booking policy can still require guests to tell you about a name change.

Does this ban restaurants from charging deposits or selling prepaid tickets?

The law is aimed at third parties reselling reservations for more than they paid; the committee analyses describe it as letting restaurants decide whether and on what terms to work with resellers. Nothing in the analyses suggests it is meant to stop a restaurant from charging its own deposits or selling its own prepaid experiences, but confirm with counsel. A third party that prices your tables above cost needs a written agreement with you that expressly authorizes the higher price. A third party that prices your tables above cost needs a written agreement with you that expressly authorizes the higher price.

What are the penalties?

The Attorney General, a county counsel or a city attorney can seek a civil penalty of up to $1,000 per violation, plus injunctive or declaratory relief and attorney's fees. A person or business that suffers actual harm can sue for actual damages, fees and costs, and other relief.

What should my hosts record if they suspect a resold booking?

Record the booking name, the arriving guest's name, the party size and time, anything the guest says about paying a third party, any screenshots of listings, and the outcome, including lost covers for no-shows. Hosts should note facts rather than accuse the guest.

Sources

• AB 1640 - California Restaurant Reservation Anti-Piracy Act (bill record, analyses, votes), CalMatters Digital Democracy, 2026-09-27
• California's New Employment Laws for 2027: What Newsom Signed, What He Vetoed, and Your To-Do List, California Employment Law Report (Anthony Zaller), 2026-10-02
• California State Assembly Passes Bill to Crack Down on Black Market for Restaurant Reservations, California Restaurant Association, 2026-05-28

Checked November 3, 2026. Photo: khezez | خزاز / Pexels.