Sacramento, CA — Compromise legislation designed to avert a California ballot initiative showdown with Uber strikes a reasonable balance based on a review of the legislation SB 623, according to Consumer Watchdog.
“The compromise trades unlimited medical recovery in Uber and Lyft cases for better background safety checks on drivers to make sure they don’t have DUIs, child abuse convictions, sexual battery histories, or any violent felonies,” said Jamie Court, president of Consumer Watchdog. “The deal strikes a fair balance between cracking down on abuses of the medical system, because there is an opt out of the cap on medical payments if the patient can prove necessity, with making riders safer with better background checks. Given what consumers stood to lose at the ballot box, their right to sue any driver that recklessly injured them or killed their loved one, this strikes a reasonable balance between excessive medical bills and the need for greater background checks for drivers. The big issue is this applies to Uber and Lyft related cases while the ballot measure would have impacted all motor vehicle cases.”
“The issue of Uber’s liability for sexual abuses in Ubers remains with the courts as does Uber’s liability for deaths and injuries caused by its robotaxis. Under the deal, riders can have more confidence riding in Ubers that their drivers don’t have histories of sexual abuse, child abuse and violence, and that is an advance for safety. It will put out of business unethical attorneys and doctors, but leave the claims system in tact for those injured in Ubers, with a few more hoops to jump through if you are seriously injured. On balance, it’s a win-win.”
Consumer Watchdog issued two reports discussing how Uber was stockpiling $12 billion in a self-funded insurance reserve and seeking to remove its liability for all car crashes so that it could spend the money on a robotaxi rollout. Read the reports: “Uber’s License to Kill Insurance Scam” and “A License to Kill.” The first report documents how Uber claimed high insurance costs were driving its need for limited liability, while it was in fact overcharging itself for insurance to amass a giant reserve.
“Uber will continue to be responsible for its robotaxis and any injuries or deaths that they cause,” said Court. “Uber still needs to answer for its false claims that its insurance costs were driving the need for limited liability when in fact it was overcharging itself for insurance. Uber is advancing federal legislation to take away the rights of consumers in every state to hold it accountable under these same lies and it must be called out.”
Read about the federal legislation.
