In an opinion filed January 23, Judge Daniels denied a motion (covered here) in which DoorDash and Uber sought to preliminarily enjoin, as improperly “compelled speech,” a new New York City law requiring that online food ordering services provide an option to tip before the order is placed and to include an option for a tip of at least 10%.
DoorDash and Uber used to customarily include a tip option before the order was placed, but, in December 2023, the City passed a “Minimum Pay Law” for delivery workers, and so they moved the tip prompt to a screen that would appear after checkout—and which resulted in a significant decline in tips. The new law was passed in response to the tip decline.
Judge Daniels concluded that the DoorDash and Uber were unlikely to succeed on the merits because the speech at issue was commercial speech—speech that is “linked inextricably” to a commercial transaction—and so subject to less First Amendment protection. Judge Daniels rejected the plaintiffs’ effort to characterize the law as forcing them to “convey the City’s preferred message regarding tipping,” and found that the speech at issue merely reflected their “economic interests” in a commercial transaction:
Continue Reading Judge Daniels Refuses To Preliminarily Enjoin City Law Requiring Online Food Orders To Include An Upfront Tipping Option