What's happening
This bill requires ride-hailing companies to display a clear notice that passengers waive their right to sue in court before using the service.
Why it matters
Increases transparency for passengers. by explicitly informing them—at every login and registration—that they are waiving their right to sue the ride-hailing company in court, making the legal implications of using the service much clearer.
Potentially affects consumer rights. by emphasizing the use of mandatory arbitration or other dispute resolution methods instead of court, which could limit passengers’ legal recourse in cases of disputes or harm.
Imposes a new compliance requirement on ride-hailing companies. , mandating both prominent visual formatting (red, bold text) and repeated acknowledgment, which could impact user experience and possibly influence public perception of these platforms.
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Who cares
Transportation network companies
TNCs would have to display the notice “IF YOU CLICK HERE, YOU GIVE UP YOUR RIGHT TO SUE US IN COURT” in conspicuous, bold red lettering before passengers use their digital networks.
TNC passengers
Passengers would have to acknowledge the notice at registration and every subsequent attempt to access a TNC’s digital network.
Passenger-rights advocates
The bill would require repeated warnings to passengers about giving up their right to sue TNCs in court.
Headline styles
Warn Ride App Users
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to transportation
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8480
IN SENATE
May 8, 2018
Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to requiring TNC passengers to acknowledge certain legal notices
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 10 of section 1692 of the vehicle and traffic law is renumbered subdivision 11 and a new subdivision 10 is added to read as follows:
10. A TNC shall provide a notice to appear prior to a passenger's use of the TNC's digital network that states: "IF YOU CLICK HERE, YOU GIVE UP YOUR RIGHT TO SUE US IN COURT." Such statement shall be written with conspicuous lettering in red font and bold face type. The passenger shall acknowledge such notice prior to being granted access to the TNC's digital network at the time of registration and each time the passenger attempts to gain access to such network thereafter.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15829-02-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the vehicle and traffic law, in relation to requiring TNC passengers to acknowledge certain legal notices
Purpose or general idea of bill
This purpose of this bill is to ensure people are aware that they are giving up their rights to sue TNC when they use it.
Summary of specific provisions
Section 1: Adds new subdivision 10 to section 1692 of the vehicle and traffic law to create mandatory notices in Transportation Network Compa- nies (such as Uber, Lyft) user agreements and when passengers use/ log into the network that the users are giving their right to sue in court by using the application (submitting to mandatory arbitration).
Section 2: Effective date.
Justification
The following message will appear every time the passenger uses the Transportation Network Companies (Uber, Lyft, etc) application and when the passenger registers for the application: "IF YOU CLICK HERE, YOU GIVE UP YOUR RIGHT TO SUE US IN COURT".
The proliferation of arbitration clauses applying to a wide range of consumer's interactions with the corporate world has created a system of denying New York residents due process in our court system.
Most recently, consumers are using mobile applications without fully understanding the "user agreements" and the legal language that deprives them of using our court systems and their Constitutional right to due process. Most recently federal courts have ruled that "arbitration clauses" are permissible. Yet the arbitration process is a one-sided process paid for by the same company that the consumer has had a prob- lem.
The most serious of these problems is discrimination, harassment and sexual assault. The use of the arbitration process to adjudicate a crim- inal charge is not what our Constitution had intended. Yet this partic- ular situation is now the focus of victims of sexual violence who have used mobile application transportation network companies like Uber and Lyft.
It is worth repeating that consumers are not fully understanding or even reading the "user agreements" that they have rushed to accept in the process of launching an application such as the Uber and Lyft user agreements that deny them the right to sue in court. When it comes to acts of violence against consumers, there should be no tolerance for these types of corporate attempts to cover up the crimes of those participating in their networks and most definitely not to deprive Amer- icans of their Constitution right to due process in a court of law.
It is very clear that these arbitration clauses used in "user agree- ments" are designed to circumvent our constitutional right to trial by jury and are denying consumers due process in a court of law. It is also time to inform consumers that rushing to accept a "user agreement" with- out fully understanding the legal ramifications can be a dangerous thing.
There is not one person alive who would willingly agree to forego a trial by jury especially in a civil case involving sexual assault. This is exactly what is happening with sexual assault victims when the perpe- trator is a driver for Uber and Lyft. This is a situation that must end and end this year. It is clear that technology is evolving even faster than our legal justice system.
Prior legislative history
None, this is new legislation.
Fiscal implications
None
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.