Uber has relented on its surge pricing scheme in New York City following negotiations with New York Attorney General Eric Schneiderman, according to a press release from his office Tuesday. Schneiderman negotiated for limits based on New York's price gouging statute, which prevents companies that sell "essential consumer goods" from charging more in emergencies.

Uber has faced plenty of scrutiny over its surge pricing, where cars will charge a premium during periods of high activity and low supply, like during rush hours or, unfortunately, in weather emergencies like Hurricane Sandy or snow storms. Often, surge rides result in a bill of hundreds of dollars that would have normally been a fraction of the price.

Under the new system [PDF] in New York, surge pricing will be capped at the fourth-highest multiplier reached in the last sixty days. For instance, if the three highest-priced days had surges at 4.5 times normal prices and the next highest surge was 2.5 times, the current day's surge prices can't go any higher than 2.5 times the regular price for a ride.

According to Schneiderman's office, Uber is "expected to announce a national policy to limit pricing in emergencies that is based on this agreement."