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Uber Settles California Suit On Misleading Customers

Uber Settles California Suit On Misleading Customers

Enterprise & IT Apr 8,2016 0

Uber Technologies agreed to a $25 million settlement to end a civil lawsuit in California that accused the company of misleading customers about the strength of its background checks on drivers. The Superior Court of California approved the terms of the settlement between Uber and the District Attorneys of San Francisco and Los Angeles.

Uber has agreed to pay $10 million as part of this settlement, as well as to address a number of advertising and airport-related issues. The remaining $15 million will be waived if Uber complies with the terms of the agreement for two years.

The case was filed in December 2014 by the two district attorneys, who alleged that Uber misled its customers about the strength of its background checks on drivers.

"We?re glad to put this case behind us and excited to redouble our efforts serving riders and drivers across the state of California," Uber said.

Uber agreed not to use terms like "safest ride on the road" or describe our background checks as "the gold standard". These commitments are almost identical to those the company made as part of a class-action lawsuit settlement in February?and to commitments made by Lyft as part of their settlement with the district attorneys in 2014.

Uber has also agreed to allow ridesharing only at airports in California where the company has explicit permission: SFO, LAX, BUR, SAN, OAK, SJC, SNA, MRY, SMF, SBA and MOD. In addition, the company has changed the way it describes airports fees - as agreed in a class-action lawsuit last November.

Uber said it would continue to work with the DMS, which last August certified Uber's app as a reliable, accurate way to calculate fares using GPS data. The DMS also said that the app "meets or exceeds" the measurement for traditional taximeters.

Tags: Uber
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