Includes for-hire transportation services in the prohibition on price gouging; provides that such prohibition shall apply to for-hire transportation services after the declaration of a state of emergency by the governor tied to an abnormal disruption of the market or upon notice from the governor, attorney general or the chief executive of any municipality of the state that an abnormal disruption of the market exists.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8940
SPONSOR: Rozic TITLE OF BILL:
An act to amend the general business law, in relation to including for-
hire transportation services in the prohibition on price gouging
PURPOSE::
To expand New York's price gouging protections to include for-hire
transportation services during states of emergency or abnormal
disruptions in the market, ensuring that consumers are not unfairly
exploited when demand for transportation surges.
SUMMARY OF SPECIFIC PROVISIONS::
Section one amends the General Business Law by adding two new paragraphs
(f) and (g) to explicitly include for-hire transportation services under
the state's prohibition on price gouging during a declared emergency or
abnormal market disruption. Paragraph (f) clarifies that the price
gouging prohibition applies to for-hire transportation services once a
state of emergency has been declared by the Governor, or upon notifica-
tion by the Governor, Attorney General, or Chief Executive of any muni-
cipality that an abnormal disruption of the market exists. This
provision also allows for such officials to request priding adjustments
that incentivize increased transportation availability in specific
areas.,
Paragraph (g) defines for-hire transportation services" broadly, encom-
passing ground transportation where the origin, destination,or both are
within New York State. This includes, but is not limited to: transpor-
tation network companies, taxicabs and liveries, black cars and luxury
limousines, buses not operated by public transit authorities, and other
for-hire vehicles as defined by state or local law.
Section two sets forth the effective date.
JUSTIFICATION:
New Yorkers often rely on ground transportation services during emergen-
cies, including storm evacuations, transit shutdowns, and other crisis
Situations when public options are limited or unavailable. However,
during these critical moments, riders are often met with excessive and
exploitative surge pricing.
In September 2023, during flash flood emergencies in New York City,
for-hire transportation companies were widely criticized for surging
fares as streets flooded and public transit came to a halt. Customers
reported being charged up to $80 for a ten-minute ride. The City had
declared a state of emergency and more than 23 million people across the
tri-state area were under flood warnings. These practices left many New
Yorkers stranded or forced to choose between unsafe conditions and unaf-
fordable transportation.
This bill clarifies a longstanding gap in New York State's price gouging
laws by extending protections to ground transportation services. These
services must be held to clear consumer protections as other essential
goods. The bill clearly defines emergency situations and ensures that
pricing is fair, transparent, and subject to oversight, while preserving
the flexibility for state and local officials to work with providers to
expand service availability in hard-hit areas.
As ride-hailing platforms continue to dominate the transportation land-
scape, the need for clear, enforceable consumer protections has become
urgent. This bill strikes a balance between ensuring consumer safety and
supporting the availability of transportation services during times of
greatest need.
PRIOR LEGISLATIVE HISTORY::
This is a new bill in the Assembly.
FISCAL IMPACT ON THE STATE:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8940
2025-2026 Regular Sessions
IN ASSEMBLY
July 16, 2025
___________
Introduced by M. of A. ROZIC -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to including for-
hire transportation services in the prohibition on price gouging
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 396-r of the general business law
2 is amended by adding two new paragraphs (f) and (g) to read as follows:
3 (f) This prohibition shall apply to for-hire transportation services
4 after the declaration of a state of emergency by the governor tied to an
5 abnormal disruption of the market or upon notice from the governor,
6 attorney general or the chief executive of any municipality of the state
7 that an abnormal disruption of the market exists; provided, however,
8 such notice from the governor, attorney general or chief executive may
9 request that such for-hire transportation service adjust its pricing in
10 a manner which incentivizes increased transportation options in a
11 specific geographic area.
12 (g) For the purposes of this section, the term "for-hire transporta-
13 tion services" shall mean the sale of vehicular ground transportation by
14 a seller for a price, the origin, destination, or both being within New
15 York state, whether provided by the seller itself or provided by third
16 parties employing the seller's platform to connect passengers and driv-
17 ers. For-hire transportation services include, but are not limited to,
18 the transportation services provided by transportation network companies
19 as that term is defined in section sixteen hundred ninety-one of the
20 vehicle and traffic law; taxicabs, as defined in section one hundred
21 forty-eight-a of the vehicle and traffic law and section 19-502 of the
22 administrative code of the city of New York, or as otherwise defined in
23 local law; livery vehicles, as defined in section one hundred twenty-
24 one-e of the vehicle and traffic law, or as otherwise defined in local
25 law; a black car, limousine, or luxury limousine, as defined in section
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13244-01-5
A. 8940 2
1 19-502 of the administrative code of the city of New York, or as other-
2 wise defined in local law; a for-hire vehicle, as defined in section
3 19-502 of the administrative code of the city of New York, or as other-
4 wise defined in local law; or a bus, as defined in section one hundred
5 four of the vehicle and traffic law, but not a bus operated by a govern-
6 ment for purposes of the provision of public transportation.
7 § 2. This act shall take effect immediately.
