A U.S. appeals court on Wednesday said a rental car service’s arbitration agreements with its customers does not shield a third-party company that verifies the identities of the service’s users from being sued under a unique Illinois biometric privacy law in court.
A unanimous three-judge panel of the 7th U.S. Circuit Court of Appeals upheld a judge’s ruling that said Mitek Systems Inc could not invoke the arbitration agreements because it was not a beneficiary of contracts between HyreCar Inc and its customers.