I Ain't Afraid of No Ghost…Kitchen! A New Realm of Consumer Protection After the INFORM Consumers Act

Authors

Johanna Silva

First Page

153

Abstract

The effects of the COVID-19 pandemic were pervasive, sparing none from its impact. However, the restaurant industry bore an even greater change and a heavier burden than most. At the height of the pandemic, some 110,000 restaurants shut down. QR codes replaced paper menus, street parking transformed into outdoor dining sheds, and Friday night dinners at the “great spot on the corner” became takeout orders from the couch. Reopening was an unpredictable gamble for restaurant owners, fraught with tiered plans and inconsistent regulations on safe and unsafe dining practices. The desperate search for creative solutions to stay in business propelled the ‘ghost kitchen’ phenomenon, a market predicted to be worth one trillion dollars by 2030. The rapid growth of the ghost kitchen industry illustrates two critical points. First, public distrust of this new business model highlights the growing need for government regulation to protect consumer interests. Second, traditional regulatory frameworks are ill-prepared to protect consumers amid the growth of e-commerce transactions through marketplace platforms. This Note argues for regulating third-party delivery apps as market platforms under the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act. Additionally, it advocates for directly regulating ghost kitchens under the ‘unfairness’ prong of the Federal Trade Commission’s consumer protection authority. Ultimately, this Note is a call to action. Our consumer protection framework has historically evolved in response to subsequent waves of public agitation against unfair commercial practices. Now is the time to renew public demand for regulations that prioritize consumer interests as e-commerce transactions proliferate across all sectors.

Recommended Citation

Johanna Silva, I Ain't Afraid of No Ghost…Kitchen! A New Realm of Consumer Protection After the INFORM Consumers Act, 19 Brook. J. Corp. Fin. & Com. L. 153 (2024).
Available at: https://brooklynworks.brooklaw.edu/bjcfcl/vol19/iss1/7