A US appeals court on Thursday, August 17, ruled in favor of Uber Technologies in a closely watched lawsuit over whether passengers gave up their right to sue the ride-sharing company when they registered for its service.
The 2nd US Circuit Court of Appeals in Manhattan vacated a lower court order that denied motions by Uber and its former Chief Executive Officer, Travis Kalanick, to compel arbitration.
The court also said Spencer Meyer, the passenger named in the proposed class action, had agreed as a matter of law to arbitrate his own claims with Uber.
Lawyers for Uber, Kalanick, and Meyer did not immediately respond to requests for comment.
The decision may give a boost to Internet companies hoping to force customers to submit to arbitration, included in a long list of terms and conditions they may not see.
Meyer accused Uber and Kalanick of violating antitrust laws by conspiring with drivers to charge high “surge pricing” fares during periods of heavy demand.
Meyer said Uber failed to provide sufficient notice, saying he had not seen a hyperlink to a document that mentions arbitration when he registered with his smartphone.
But in Thursday’s decision, Circuit Judge Denny Chin said Uber disclosed the provision clearly, and that Meyer was not excused for not following the hyperlink.
Full Content: US News
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