(Rafiq Maqbool/AP)Uber and Lyft repeatedly misled their riders by claiming their background checks were 'industry leading,' the San Francisco and Los Angeles district attorneys said Tuesday.
The two prosecutors sued Uber and Lyft on behalf of the state, citing multiple business violations that focus on the companies' messaging to its riders as well as their airport practices. Lyft settled the suit for $500,000, while Uber 'has not been cooperative,' said San Francisco District Attorney George Gascon.
The Uber lawsuit lays out five areas where the company allegedly broke the law: it made 'untrue or misleading' statements about the strength of its drive background checks, it charged UberX riders a $1 'Safe Rides Fee' related to those falsely advertised background checks, it calculated fares without going through the proper state agencies, it operates illegally at California airports, and it fraudulently charged airport fees to riders that it did not then pay to airports.
To make amends, the suit demands that Uber amend its language to stop staying its background checks are 'industry-leading' when they don't include fingerprint checks. It also wants California riders to be refunded for every $4 airport fee and 'Safe Rides Fee' they paid. Prosecutors said riders were charged the airport fee but the fee did not go to the airport.
Gascon took issue with the way Lyft and Uber rely on driver-submitted information for background checks and don't use fingerprints or LiveScan. Background checks that don't include fingerprints can't be sure to be tied to the right person, and therefore can't be secure, Gascon said.
'At the end of the day, you cannot conduct the most comprehensive background check possible if the info you have obtained has nothing to do with the person that is signing on with you to be a driver,' Gascon said.'It is completely worthless.'
Lyft was hit with a similar suit and has agreed to settle. They have to remove language that claims their background checks are industry leading and get express permission from every airport they operate in. Lyft and Uber only have permits to operate at San Francisco International Airport, which they were granted in October. Lyft will pay civil penalties of $500,000 - half of that right away, and the other half will be waived in a year if they comply with all requirements.
Gascon said the office was frustrated that Uber was not willing to cooperate with them on the lawsuit.
Posted by Unknown on Tuesday, December 9, 2014 - Rating: 4.5
0 comments "SF, LA District Attorneys Sue Uber and Lyft Over 'Misleading' Business Violations"
Post a Comment