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Sharing Economy Liability: What Victims Should Know

What is Supplier Responsibility In the Collaborative Consumption Economy?

The collaborative consumption economy is a model in which platforms, namely platforms such as:

  • Uber
  • Lyft
  • Airbnb
  • TaskRabbit

Connect people willing to provide a service with people willing to pay for it. However, when incidents such as:

  • Injuries
  • Crimes
  • Property Damage

This begs the question: who is legally liable? These platforms typically position themselves as “facilitators” rather than employers. This creates difficulties for victims seeking compensation for their injuries. However, in most cases, the law allows both the individual performers and the platform itself to be held liable.

Real Risks for Users

Users and renters can face a variety of risks. From physical violence on a ride with a driver to theft in a rental car. For example, passengers on Uber or Lyft are often victims of accidents or even assaults. Airbnb renters may encounter poorly vetted hosts. The same goes for unauthorized video surveillance. Such incidents can be serious grounds for a lawsuit. Both against the individual host and against the platform itself. Especially if it ignored clear signs of danger.

Can the Platform be Held Liable?

Although most companies state in their user agreements that they are not employers, a court may find them liable. But only if irresponsibility is proven. For example, if a platform:

  • Failed to properly screen the driver
  • Ignored complaints
  • Provided unsafe service

This can be a good basis for a lawsuit. You can read more about the grounds for a negligence lawsuit in our article about negligence lawsuits in California. In addition, in some cases, liability may be found for the actions of third parties. Especially if the platform actually controlled the performer’s actions. Or allowed them to perform without proper screening.

What Should Victims Do?

If you have been harmed as a result of communicating with a performer on the platform, it is important to take immediate steps such as:

  • Document the circumstances of the incident
  • Seek medical attention if necessary
  • Retain correspondence and the performer’s profile information
  • Contact an attorney as soon as possible.

The professionals at KAASS LAW can help you determine who is liable and how to obtain compensation. We are experienced in personal injury cases, read more in the article Personal Injury Liability in California.

Legal Framework: What Helps Victims?

Victims can file a lawsuit based on consumer protection laws. Also, general principles of civil liability. These include:

  • Negligence
  • Unfair commercial practices
  • Breach of safety requirements
  • Liability for acts of third parties

According to the Consumer Financial Protection Bureau (CFPB) consumers have the right to transparent information. Also to protection against unfair practices. These rights also apply to sharing economy platforms. In addition, the court may take into account marketing platforms if they actively promote services as safe and controlled. This may weigh in favor of finding them liable.

What Compensation is Available?

Depending on the circumstances of the case, victims may be able to recover:

  • Compensation for medical expenses
  • Compensation for moral damages
  • Lost income
  • Repair or replacement of damaged property
  • Punitive damages

According to the National Law Review platforms can be liable for substantial sums. But only if they can be shown to have failed to take reasonable steps to prevent harm.

Why It’s Important to Get Legal Advice?

Companies such as Uber and Airbnb have strong legal departments. They draft their user agreements to minimize their liability. Without professional advice, it can be difficult, and sometimes impossible, to recover compensation.  That’s why it’s important to get help. Professional attorneys have the knowledge and resources to handle these cases. They carefully analyze each case, identifying hidden liabilities and weaknesses in the company’s defenses.

What Legal Complications can Arise in The Process of Filing a Lawsuit?

One of the main challenges in filing a lawsuit against shared use companies is the existence of arbitration agreements. These are included in the user terms and conditions. Many platforms require users to sign an agreement. That requires disputes to be settled in private arbitration rather than in court. This limits access to full litigation and reduces the likelihood of class action lawsuits.

In addition, victims often face the challenge of identifying the defendant. In some cases, performers may use fake data. And platforms may refuse to provide information without a court order. All of this makes it difficult to file a lawsuit and requires legal assistance. It is important to note that laws can vary from state to state. For example, California has specific consumer protection laws. They have a broader approach to the concept of “employer,” which can play into the hands of the victim.

Victims Are Not Alone

As the popularity of these services grows, so does the number of incidents. Statistics show that the number of complaints about Uber and Airbnb has doubled in the last few years alone. This means that the problem is systemic and requires special attention.  Platforms need to take responsibility for the safety of their users. It is in the public interest to hold them accountable, not just for compensation. It is also about setting precedents that will help other victims get justice.

Conclusion

Victims affected by the actions of performers should not be left unprotected. Despite the legal complexities, there are many tactics to hold both the individual performer and the platform itself accountable.

The key is to act quickly and with legal assistance.  If you have been harmed by an Uber driver, Airbnb host, or other platform member, contact KAASS LAW. We can help you understand the situation and seek justice.

Ana George

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