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A federal judge in Seattle has dismissed a lawsuit brought by two women against Uber over its policies, writing in a March opinion that the ride-hailing company’s contract of service is unconstitutional because it requires drivers to give customers “receipts” as proof that the rides they accept are legal.
“The Court finds that the Plaintiffs’ case is not eligible for preliminary injunctive relief as plaintiffs failed to show that they have suffered any harm as a result of Defendants’ receipt requirement.”
The opinion was issued on Tuesday, one day after San Francisco-based Uber filed an appeal of U.S. District Court Judge William Alsup’s ruling.
Alsup ruled last month that drivers must give customers a receipt for rides they accept, in order to comply with the city’s code of conduct, and said that the company’s rules are an attempt to prevent riders from using Uber’s system to pick up illegal black cars. The District Court was the first in the country to rule that Uber drivers do not have to give out “receipts,” which they say violate their free speech.
Uber has been forced to change its business model in recent months, though the company has refused to say what it would do if it could not continue operating in Seattle. The company has said it could move jobs to other jurisdictions, but it could very well sue to block the city from regulating the marketplace, if the ruling stands.
In the latest appeal, Uber says it would appeal to the Ninth Circuit Court of Appeals in San Francisco, where a similar ruling is pending, and the 11th Circuit Court of Appeals in Chicago, which did not agree with Alsup’s reasoning.
Alsup called the decision a “complete and total demolition of this case,” calling it a “victory for equality.” But he wrote,
The Court finds that the Plaintiffs’ case is not eligible for preliminary injunctive relief as plaintiffs failed to show that they have suffered any harm as a result of Defendants’ receipt requirement. In fact, all the law demonstrates is that the receipt requirement has no deterrent effect on drivers and it enables drivers to continue their practice of running unlicensed vehicles.
Uber has not been able to establish that the receipt requirement poses any “serious harm,” according to the court, because the regulations in question
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