District court allows lawsuit on advertising in ridesharing vehicles to proceed
On Feb. 2, the Liberty Justice Center filed a lawsuit on behalf a Vugo, Inc. and individual rideshare drivers claiming the city of Chicago’s ban on advertising on or in ridesharing vehicles, but not taxis, violates the right to free speech and equal protection of the law under the U.S. Constitution.
In May, the city of Chicago filed a motion to dismiss the lawsuit.
Yesterday, District Court Judge Elaine Bucklo denied the city’s motion, allowing the plaintiffs to pursue their claims that the ban on advertising in rideshare vehicles is unconstitutional.
“We’re pleased that we can pursue our claims against this discriminatory city ordinance. Chicago’s ban on advertising in or on ridesharing vehicles violates the right to freedom of speech protected by the First Amendment,” said Jeffrey Schwab, staff attorney at the Liberty Justice Center. “The city’s ban on advertising applies only to rideshare vehicles, but not taxis, making it impossible for Vugo to do business in Chicago and for individual rideshare drivers to supplement their income with ads. The government should not be picking winners and losers in the economy.”
Vugo provides interactive media and advertising software that ridesharing drivers can choose to display on tablet devices inside their vehicles and earn a percentage of Vugo’s ad revenue. Because of the city’s ban, displaying advertisements on a tablet device, such as Vugo’s software, in a rideshare vehicles is illegal. The other plaintiffs, who are individual rideshare drivers, wish to display advertising on or inside their ridesharing vehicles, which would help supplement their income as rideshare drivers.
The Liberty Justice Center filed a motion for preliminary injunction on June 14, which would lift the ban on rideshare advertising while the court considers the case. The court will consider whether to issue a preliminary injunction later this year.
The lawsuit was filed in the U.S. District Court for the Northern District of Illinois and is available online at http://illin.is/vugo
The Court’s Memorandum Opinion and Order is available online at http://illin.is/2hKQd2W.
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