What's happening
This bill prohibits rideshare companies in New York from using surge pricing and imposes a civil penalty for violations.
Why it matters
Directly impacts how much riders pay and when. By banning surge pricing, this bill would prevent rideshare companies from increasing fares during periods of high demand (such as rush hour, holidays, or emergencies), ensuring that prices remain consistent and predictable for consumers.
Aims to address fairness and affordability. The prohibition is likely intended to protect consumers from sudden, high fare spikes that can make essential transportation unaffordable for many people, especially during emergencies or public transit outages.
May affect service availability and driver incentives. Surge pricing is often used to attract more drivers onto the roads during busy times; without it, there may be fewer drivers available when demand is high, potentially increasing wait times or resulting in fewer available rides.
Imposes financial penalties to ensure compliance. With a $250 civil penalty for each violation, the bill creates a strong incentive for rideshare companies to adhere to the new rule, signaling that the state is serious about enforcement.
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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
7143
2019-2020 Regular Sessions
IN ASSEMBLY
April 10, 2019
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.
LBD11083-01-9
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.