Adrian J Cotterill, Editor-in-Chief
The New York City Taxi and Limousine Commission has appealed the ‘Vugo ruling’, a ruling that initially allowed aanyone to put advertising in or on For-Hire Vehicle (FHV) such as Uber or Lyft and won.
A federal appeals court earlier this week said that New York City can ban advertising inside vehicles driven for companies such as Uber and Lyft, handing a victory to the millions of passengers who it said find such ads “extremely annoying.”
The 2nd U.S. Circuit Court of Appeals in Manhattan ruled 3-0 (reversing an earlier lower court ruling), that the original ban did not violate the First Amendment.
Chief Judge Robert Katzmann called the two-decade-old ban a reasonable means to advance the city’s substantial interest in “improving the overall passenger experience.”
The ban included an exception where the Taxi and Limousine Commission lets medallion cab owners display to offset the cost of installing mandatory technology to help passengers monitor their fares and pay by credit card.
Vugo Inc, the Minnesota-based plaintiff, sued New York City in 2015 over the ban, which it said unconstitutionally impeded its commercial speech rights.
New York City’s law department, through a spokesman, said it was pleased the court upheld the ad rules, “which directly advance the city’s strong interest in promoting passenger comfort for its residents.”
The decision reversed a February 2018 ruling by U.S. District Judge Ronnie Abrams in Manhattan.
Katzmann, however, endorsed the city’s effort to help residents and visitors enjoy “peace and quiet” from the rear seat, and said the city was entitled as a policy matter to exempt yellow cab owners who upgraded their technology.
Vugo filed a similar lawsuit against Chicago in February 2017. That case was dismissed in December 2018, according to court records. The case is Vugo Inc v City of New York, 2nd U.S. Circuit Court of Appeals, No. 18-807.
The TLC have oversight over taxis, black cars and FHVs. As a result of this, we understand that the TLC is no longer issuing new permits to anyone that wants to put a digital top or wrap or interior screen on/in an FHV in NYC.
This will of course adversely affect the business plans of companies such as Vugo (in-car advertising) and Firefly who are attempting to put digital screens on FHVs.
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