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.”
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