Senate Bill S5079

                                 
BILL NUMBER: S5079

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

An act to amend the vehicle and traffic law, in relation to requiring
TNC passengers to acknowledge certain legal notices

 
PURPOSE:

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 PROVISIONS:

Section 1: Adds new subdivision 10 to section 1692 of the Vehicle and
Traffic Law, requiring Transportation Network Companies, such as Uber
and Lyft, to provide mandatory notices in user agreements and upon
passenger login. These notices must inform users that, by using the
application, they waive their right to sue in court and instead submit
to mandatory arbitration.

              

Section 2: Effective date.

 
JUSTIFICATION:

The following message will appear every time the passenger uses the
Transportation Network Companies (i.e. 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 do not fully read or understand the
"user agreements" they quickly accept when using applications like Uber
and Lyft. These agreements strip them of their right to sue in court.
There should be zero tolerance for corporate attempts to shield wrongdo-
ing within their networks, especially in cases of violence against
consumers. Most importantly, no company should deprive Americans of
their constitutional 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.

 
LEGISLATIVE HISTORY:

S.3319 of 2023-2024; Referred to Transportation;

S.1767 of 2021-22: Referred to Transportation;

S.1767 of 2019-20: Referred to Transportation;

S.8448 of 2017-18: Referred to Transportation

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.