Uber Sued by Los Angeles and San Francisco, While Lyft Settles for $500,000
J Thoendell stashed this in Tech
The district attorneys of San Francisco and Los Angeles today filed suit against Uber for unlawful business practices.
The complaint alleges Uber has misled the public about the effectiveness of its background checks on drivers it hires, along with fraudulent airport fees and customer fare calculations that haven’t been approved by the state. The DAs are seeking a permanent injunction against these practices.
“These companies can be innovative in the way they deliver services without ignoring the laws that protect the public,” said San Francisco’s George Gascón and Los Angeles’ Jackie Lacey in a published statement.
At the same time, Gascón and Lacey said they had settled similar issues with Lyft, saying the company had agreed to pay civil penalties of $500,000. Lyft agreed to get authorization from airports and submit its app for state testing of its accuracy of measurement. It will get out of half of the fine if it complies within a year.
The suit comes at a time when Uber is being legally challenged in many of the 250 cities in which it operates. The company was hit with a cease and desist in Madrid, Spain; a shutdown order in Bangkok, Thailand; another city lawsuit in Portland; a recent ban in Delhi, India, where a passenger was allegedly raped over the weekend; and a ban in the Netherlands. Also today, an Uber driver in San Francisco was charged with misdemeanor vehicular manslaughter in the death of a 6-year-old girl last New Year’s Eve.