- within Consumer Protection topic(s)
- in India
- with readers working within the Advertising & Public Relations, Automotive and Banking & Credit industries
- within Government, Public Sector, Strategy and Real Estate and Construction topic(s)
Last week, the New York City Department of Consumer and Worker Protection ("DCWP") announced that it reached a settlement with Way.com, Inc., resolving allegations that the online booking platform promoted illegal parking facilities on its platform.
Way.com is a car services platform, providing access to parking spaces, car washes, and other car-related services. According to the allegations in New York City's complaint, Way.com acts as a digital marketplace where consumers can search for, book, and pay for parking spots.
The New York City Code requires parking lots to be licensed by the DCWP. In addition to prohibiting the operation of unlicensed parking lots, the Code also prohibits others from “aiding such unlicensed businesses." Here, NYC alleged that Way.com violated the Code by aiding unlicensed parking lots in soliciting customers and then arranging for the purchase of parking spots.
As part of the settlement, the company agreed to pay $200,000 in civil penalties. The company also agreed to implement procedures to identify unlicensed facilities and to actively monitor its platform.
In announcing the settlement, DCWP Commissioner Samuel A. A. Levine said, “We will not tolerate digital platforms facilitating illegal activity.”
This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
