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Vugo Inc. v. City of New York

TLC's Ban on Advertising in For-Hire Vehicles Violates First Amendment

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OPINON & ORDER

*1 Citing an interest in promoting and protecting passenger comfort, the New York City Taxi and Limousine Commission (“TLC”) promulgated rules that prohibit the display of advertising in certain types of for-hire vehicles without prior authorization. Although the TLC’s regulatory scheme permits advertising in medallion taxis and street-hail liveries, it is effectively banned in all other vehicles. Vugo, Inc., a Minnesota-based company that places digital content, including advertising, in rideshare vehicles such as those affiliated with Uber and Lyft across the country, has sought to expand its business into New York City. After the TLC refused Vugo authorization to do so, it brought this First Amendment challenge.Both Vugo and the City now move for summary judgment. Because the City is unable to justify the challenged regulations, even under the relaxed judicial scrutiny applied to restrictions on commercial speech first articulated in Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, Vugo’s motion is granted and the City’s motion is denied.

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