On May 7, Colorado lawmakers passed HB25-1291, a rideshare regulation bill that introduces new mandates on background checks, audio and video recording, and civil enforcement—but industry leaders say the measure opens the door to costly litigation and imposes compliance burdens that could limit service and drive up prices for riders. The bill adds a private right of action for individuals to sue over violations prompting concerns over legal exposure and redundant regulatory requirements.
Transportation Network Companies (TNCs) have expressed opposition to the bill's private right of action (PRA), warning it could lead to an increase in costly lawsuits over technical or minor violations. According to Uber, while the final version of HB25-1291 limits the PRA to cases involving actual injury or harm—including death, sexual assault, or injury to minors—existing enforcement by the Public Utilities Commission and access to civil courts already provide adequate remedies. Uber warns that the bill will incentivize plaintiff-driven frivolous litigation and raise legal costs, potentially resulting in higher fares for consumers and reduced earnings for drivers.
The final version of HB25-1291 also narrows its arbitration restrictions to claims involving sexual misconduct or sexual assault. However, TNC companies have highlighted this provision as redundant and potentially confusing since federal law already prohibits forced arbitration in such cases. Uber noted that its arbitration agreement has excluded these claims for years, aligning with both federal requirements and public policy. The company warns that layering state law on top of federal protections could introduce unnecessary legal ambiguity and compliance friction without delivering new benefits to consumers.
Lyft expressed concerns about the legislation changes, stating to Colorado Public Radio that the amendments "made the bill worse."
According to The Perryman Group, excess tort costs impose a significant burden on Colorado households, contributing to inflation and lost earnings. In Colorado, these costs exceed $5,700 per household annually—more than the national average—due to diverted resources, higher insurance premiums, and reduced economic productivity.
The Colorado General Assembly is responsible for enacting state laws, appropriating funds, and overseeing state government administration. It convenes annually to address legislative matters affecting Colorado residents.