Colorado rideshare law spurs lawsuit fears and operational hurdles for Uber and Lyft

Colorado rideshare law spurs lawsuit fears and operational hurdles for Uber and Lyft
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Jared Polis, Governor of Colorado | Colorado Gov

The Colorado General Assembly has announced the passage of House Bill 25-1291, which enacts one of the most stringent rideshare safety laws in the United States and expands civil liability provisions. This announcement was made in a Senate hearing document.

According to the American Tort Reform Association (ATRA), the legislation could inundate courts with opportunistic lawsuits and push Colorado toward a "Lawsuit Inferno" status on ATRA’s Legislative HeatCheck. The association argues that the bill's private right of action would allow trial lawyers to bypass traditional tort law and exploit the Colorado Consumer Protection Act for personal injury claims, thereby escalating legal costs without delivering tangible benefits to consumers. Citing Colorado’s already high tort tax and job losses linked to excessive litigation, ATRA is urging Governor Polis to veto the bill.

Uber has also expressed concerns regarding House Bill 25-1291, known as the TNC Consumer Protection Bill. In a letter addressed to Majority Leader Robert Rodriguez and House Speaker Julie McCluskie, Uber warned that the bill's requirements for continuous audio and video recording of rides, along with a broad private right of action for minor or technical violations, are impractical. The company says these measures would expose both Uber and its drivers to excessive litigation. Furthermore, Uber objected to the bill’s ban on arbitration agreements, arguing it violates federal law and long-standing court precedent.

Uber opposes the inclusion of a private right of action in HB25-1291, cautioning that it will lead transportation network companies into a wave of litigation over statutory violations already covered by existing enforcement tools. Although the final bill narrows this provision to cases involving concrete harm—such as injury, death, or sexual assault—Uber maintains that Colorado's Public Utilities Commission and civil tort system already provide effective legal remedies. The company warns that the bill will encourage opportunistic lawsuits and shift legal costs onto riders and drivers, describing it as a hidden tax primarily benefiting trial lawyers.

The Colorado General Assembly serves as the legislative branch of the State of Colorado, comprising both the House of Representatives and the Senate. It is tasked with enacting state laws, appropriating funds, and overseeing state government administration. The General Assembly convenes annually to address legislative matters affecting Colorado residents.