Prosecutors in Los Angeles and San Francisco announced Dec. 9 that they were filing a suit against Uber, the mobile app ride-sharing service based in SF, alleging false and misleading statements to its customers.
The civil suit claims the company engaged in multiple business practices which violate state law.
Prosecutors also said they had reached a settlement around the same time with Uber’s rival service, Lyft, in a consumer protection action. Lyft agreed to pay $500,000 in civil penalties.
Uber, which views itself as a “technology platform” and not a transportation company, has faced a series of legal setbacks this year, including a shutdown of its new UberX service in Las Vegas.
San Francisco District Attorney George Gascón and Los Angeles County District Attorney Jackie Lacey jointly announced the company’s actions in San Francisco.
“Unfortunately, Uber, unlike Lyft, has refused to comply with reasonable regulations as required by California law,” said Lacey. “As a result, Uber continues to put consumers at risk by misleading the public about background checks of its drivers and its unwillingness to ensure that correct fares are charged.”
In Lyft’s case, prosecutors said the company agreed to a permanent injunction prohibiting it from making misleading statements about its background checks on drivers.
The injunction requires Lyft to submit its smartphone app to the California Department of Agriculture’s Division of Measurement Standards for accuracy evaluation. Lyft has also agreed to a requirement to obtain “express authorization” from California airports to provide ride-sharing services there.
“The settlement with Lyft demonstrates that technical innovation and corporate responsibility are not incompatible,” both prosecutors said in a joint statement. “We commend Lyft for its willingness to work with law enforcement to ensure compliance with the laws that protect California consumers.”
Uber spokesperson Eva Behrend said in a statement that the company has met with prosecutors “to address their concerns regarding airport operations,” background checks, and other issues.
“We will continue to engage in discussions with the district attorneys,” Behrend said.
Uber has been accused of making untrue/misleading statements about the quality of background checks it performs on drivers, illegally having its drivers work at airports in California without official authorization, and fraudulently charging a $4 “airport fee toll” to customers traveling to and from San Francisco International Airport. The Uber drivers were not paying any fee to the airport, according to prosecutors.
The suit filed against Uber also asks the state court to issue a permanent injunction requiring the company to stop violations of California law, and seeks civil penalties for each unlawful act, as well as restitution to California Uber customers who paid the fraudulent toll fee.
(With reports from USA Today)
(www.asianjournal.com)
(San Francisco December 12-18, 2014 Sec. A pg.1)
