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Consumer Watchdog Backs Compromise Deal on Uber Liability

California legislation SB 623 offers a pragmatic trade-off by limiting medical recovery payouts in exchange for rigorous driver background checks. Consumer Watchdog, previously a vocal critic of the ride-hailing giant, now views the proposal as a necessary safeguard against both systemic legal abuses and physical risks to passengers.

Consumer Watchdog Backs Compromise Deal on Uber Liability
Photo: Bio & News

The deal targets specific driver histories, aiming to bar individuals with records of sexual battery, child abuse, DUIs, or violent felonies from operating on platforms like Uber and Lyft. Jamie Court, president of Consumer Watchdog, describes the compromise as a functional middle ground. While the agreement places new procedural hurdles before those seeking medical damages, it preserves the right to sue for serious injuries and includes an opt-out provision for patients who can demonstrate medical necessity.

This legislative pivot follows intense scrutiny of Uber’s insurance practices. Consumer Watchdog previously published reports alleging the company stockpiled $12 billion in a self-funded insurance reserve while simultaneously lobbying to cap liability for crashes. According to Court, the new bill leaves unresolved questions regarding Uber’s accountability for sexual assault cases and potential robotaxi incidents. Despite these gaps, the organization views the move as a significant victory for passenger safety, even as it continues to challenge the company's broader legislative efforts at the federal level.

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