A Toronto city councillor is warning those visiting the city for the Pan Am Games that they could be fined up to $20,000 for using UberX in Ontario.

Coun. Jim Karygiannis issued a statement Monday night urging those in Toronto for the Pan Am Games not to use "unlicensed bandit taxis."

The Ward 39 Scarborough-Agincourt councillor cited the Ontario Highway Traffic Act, which states: "A driver of a motor vehicle other than a bus shall not pick up a passenger for the purpose of transporting him or her for compensation where a licence, permit or authorization is required to do so by…a municipal by-law."

The provincial regulation also states that anyone who breaks the traffic act is liable for a fine of between $300 and $20,000.

UberX is the most commonly used service provided by Uber Toronto, a company that connects drivers with passengers. The service has been able to get around the city's laws, claiming that UberX is a communication service, not a cab company. As a result, drivers working for UberX don't have to purchase taxi licences or complete the required taxi training program.

The City of Toronto took Uber to court over the legality of the company, but an Ontario judge sided with Uber. The judge dismissed the city's application for a permanent injunction, saying that passengers, not Uber, arrange the rides.

Last week, Toronto City Council voted unanimously to review the taxi industry bylaws.

"It is this court ruling which now puts passengers at risk," Karygiannis wrote on Monday.

"I believe Justice Dunphy's decision took Uber, the company, off the hook, and put UberX passengers and drivers into the frying pan."

Karygiannis said that passengers can now be charged under the Highway Traffic Act.

"My advice to visitors and residents of Toronto is, when in doubt use a licensed taxicab."

Despite Karygiannis' warning, a representative for the Toronto Police Service told reporters that police would not be enforcing the regulations until city hall reviews the industry bylaws.

"Police won't get involved in political issues," Mark Pugash told reporters Tuesday morning.