The Government could ban Lime scooters from operating under the Fair Trading Act, a legal expert says.
In the past five months, the Accident Compensation Corporation has had more than 1200 claims relating to electric scooters.
An Auckland man broke his jaw last Friday after a Lime scooter locked up, sending him over the handlebars.
Partner of law firm Buddle Findlay Tony Dellow told Mike Hosking that it is not the rider's fault if the scooters are mechanically faulty.
However, because of ACC, it is difficult for people to sue or claim damages.
"If it was the case and Lime was ignoring the fault, there could be some sort of exemplary damages, but that would be unusual in our ACC system," Dellow says.
If they were to come off the roads, he says that the Minister of Commerce and Consumer Affairs would have to declare them to be unsafe goods.
Dellow says that if they were deemed unsafe, Lime would have to take them off the road until proven otherwise.
"Declaring that the Lime scooters are unsafe goods under the Fair Trading Act. If that was to happen, that would mean they would be unable to be supplied. That includes hiring them."
He says relevant councils should be concerned with the volume of injuries caused by electric scooters.
"The local council could revoke any authority that they've given to Lime to operate the scooters if they were concerned by the safety of them."
However, Dellow says that as a number of the injuries have been caused by people who have been drinking, that would raise questions about who is liable.