🥊 Ad Battle Heats Up: Octopus vs. TLC vs. City Council
T-Mobile's Octopus believes its tablets do not violate TLC ad rules and says NYC drivers will continued to be paid. City Council set to hold hearing on in-car FHV ad tablets next week
Shortly after we published our article yesterday, we were alerted to emails multiple NYC TLC drivers received from Octopus Interactive, in response to TLC’s recent industry-wide warning to avoid using the company’s in-car tablet(s).
Octopus is publicly denying TLC’s accusations that it is violating any rules because they “do not air advertising content”. In fact, Octopus directed NYC TLC drivers to a standalone FAQ (Frequently Asked Questions) page, where they address the allegations.
Given TLC regulations in New York City, we do not air advertising content, but instead show entertainment content, including interactive games, sports scores, and videos, as well as public service announcements and public health and safety messages.
Sincerely,
The Octopus Team
www.playoctopus.com/help"
💰 Octopus confirmed NYC TLC drivers would continued to be compensated.
⚫🟣 Interestingly, Octopus also implied Uber and Lyft were in full support of their actions. Weird, considering Lyft seems to have a direct, rival in-car tablet service offering, but maybe we’re missing something.
🤔 Finally, the company added a legal disclaimer stating drivers and vehicle owners do face real enforcement risks and costs, if they continue to do business with Octopus.
Quick Reaction
As we wrote yesterday, while we disagree with TLC’s advertising rules and want, along with many others, to amend them, the regulator has won litigation and also made it quite clear that in-car advertising tablets are currently not allowed. This is not a new debate.
As much as we would like to immediately make changes to certain TLC rules, regulations and policy, that’s not how it works. The TLC is the regulator, it has the legal authority to interpret and enforce rules governing the NYC for-hire transportation industry. Ignoring or dismissing TLC rules (i.e., if there are no ads, where is the money coming from to pay drivers) and directing TLC drivers to ignore them is a “red flag” 🚩.
Octopus’ combative stance is reminiscent of how “peer-to-peer” ridehailing company Empower attempted to deal with the TLC last year. Octopus would be wise to learn from Empower’s experience, which ultimately failed and did not (we’re pretty sure) make them a lot of NYC friends.
“The era of “break the rules and ask for forgiveness later” has ended in NYC. That doesn’t mean the rules shouldn’t or can’t change, it just means you got to do it the old fashioned way - by engaging with local organizations, politicians and other community members. You got to grind it out and get political and community buy-in.”
- AutoMarketplace (July 28, 2022)
Upcoming City Council Meeting
One of our readers brought our attention to an upcoming City Council Committee on Transportation and Infrastructure meeting next Friday, October 13th at 10am.
During this hearing a newly proposed local law, sponsored by City Council Members Amanda Farías, Farah N. Louis, Kevin C. Riley, Nantasha M. Williams, that makes it legal ✅ to advertise inside an NYC for-hire vehicle (FHV), will be discussed! As a quick side note, based on Council Member Farah N. Louis’ bio, her father used to be a yellow cab 🚕 driver (something for the industry to note ✍️).
Does Octopus know about this? Can they just not wait for this discussion to happen, it’s a week away? Also, does the TLC not know about this, perhaps sending aggressive industry-wide notices, which could be viewed as defamatory towards Octopus, is not the best way to handle the situation?
We obviously don’t know the specific background or internal politics of this public dispute between TLC & Octopus, but we’ll keep our readers up to date with new information and what’s discussed at the City Council next Friday.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️