The American Tort Reform Association (ATRA) has expressed its opposition to Colorado House Bill 1291, cautioning that the bill could lead to an increase in private lawsuits under the Colorado Consumer Protection Act. This announcement was made through a press release.
According to the Colorado General Assembly, House Bill 25-1291 proposed implementing stringent safety measures for rideshare drivers. These measures included mandatory fingerprint background checks, biometric identity verification, limits on driving hours, a ban on food and drink for passengers, and required video and audio recording of rides. The bill also aimed to allow victims of certain serious crimes to sue rideshare companies in court. Governor Jared Polis vetoed the bill in May 2025 due to concerns about legal risks, confusing rules, and the potential withdrawal of rideshare companies from Colorado.
The National Bureau of Economic Research reported that academic studies suggest states enforcing mandatory fingerprint background checks and stricter operational rules for rideshare drivers may face increased compliance costs and legal exposure for these companies. Such factors could lead to services being suspended or reduced. A study conducted on New York City’s rideshare market found that these requirements contributed to a decrease in the number of rideshare drivers and higher fares for consumers.
According to a report from BMC&C Law, companies like Uber and Lyft have been responding to legal pressures and lawsuits regarding their operational and employment practices by reevaluating their business models in certain states. The report indicates that ongoing litigation and the potential for increased lawsuits have prompted some rideshare companies to consider reducing or ceasing operations in markets where regulations or legal risks are heightened.
The American Tort Reform Association is a national organization advocating for changes in civil justice laws, focusing on limiting lawsuit abuse and promoting legal reforms. ATRA collaborates with policymakers, the business community, and legal experts to address legislative and regulatory issues related to tort law.