Vugo, Inc. v. City of New York, No. 18-807 (2d Cir. 2019)Annotate this Case
The Second Circuit reversed the district court's denial of the City's motion for summary judgment in an action challenging the City's rules banning advertisements in for-hire vehicles (FHVs) absent authorization from the Taxi and Limousine Commission. The district court concluded that the City's rules banning advertisements in for‐hire passenger vehicles, such as Ubers and Lyfts, violate the First Amendment, primarily because the City permits certain advertising in taxicabs.
The court held that the City's prohibition on advertising in FHVs did not violate the First Amendment under the Central Hudson test. In this case, the City's asserted interest in improving the overall passenger experience is substantial, the prohibition "directly advances" that interest, and the prohibition was no more extensive than necessary to serve that interest. The court held that the City's determination that banning ads altogether is the most effective approach was reasonable.