What's happening
This bill prohibits rideshare companies in New York from using surge pricing and imposes a penalty for each violation.
Why it matters
Directly impacts how rideshare drivers and companies set fares. by prohibiting surge pricing, the bill removes a key tool companies use to balance demand and supply, which could affect driver availability during busy times and alter the financial incentives for both drivers and companies.
Potentially benefits consumers by stabilizing prices. riders would no longer face unexpectedly high fares during peak demand (like rush hour or bad weather), making costs more predictable, though this could also lead to fewer available cars when demand spikes.
Introduces new regulatory enforcement and penalties. each violation of the surge pricing ban would result in a $250 civil penalty, creating a significant compliance obligation for rideshare companies and possibly leading to increased oversight or legal disputes.
May affect broader transportation dynamics in New York. by limiting pricing flexibility for rideshare services, the legislation could shift demand back toward traditional taxis, public transit, or other transportation options, influencing congestion, accessibility, and driver earnings citywide.
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Who cares
Headline styles
Ban Rideshare Surge Pricing
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4065
2017-2018 Regular Sessions
IN ASSEMBLY
February 1, 2017
Introduced by M. of A. ORTIZ -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting the practice of surge pricing by rideshare service companies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 396-pp to read as follows:
§ 396-pp. Rideshare service; surge pricing prohibited. 1. For purposes of this section, the following terms shall have the following meanings:
a. "rideshare service" shall mean a transportation service that uses an online-enabled platform to connect passengers with drivers who use their personal, non-commercial vehicles to drive passengers for a fee.
b. "online-enabled platform" shall mean an app, program, text message service, email service or any other communications technology capable of connecting users of such technology by means of a smart phone, tablet, computer or any other similar device.
(c) "surge pricing" shall mean the practice of raising prices when demand for a service is strong and lowering prices when demand for a service is weak.
2. No person, corporation, partnership, limited liability company or any other company, business or firm however organized that operates a rideshare service shall engage in the practice of surge pricing. A violation of this section shall be punishable by a civil penalty of two hundred fifty dollars for each such occurrence.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07728-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.