SFDA & LADA OFFICES FILE CONSUMER PROTECTION AND UNLAWFUL BUSINESS PRACTICES ACTION AGAINST UBER / ANNOUNCE SETTLEMENT WITH LYFT

FOR IMMEDIATE RELEASE
December 9, 2014
Twitter: @GeorgeGascon

CONTACT:
Alex Bastian (415) 553-1931
Maxwell Szabo, (415) 553-9089
Marc Massarweh (415) 553-4930
 

DISTRICT ATTORNEYS FILE CONSUMER PROTECTION AND UNLAWFUL BUSINESS PRACTICES ACTION AGAINST UBER

 

San Francisco — Today, San Francisco District Attorney George Gascón and Los Angeles County District Attorney Jackie Lacey announced the filing of a civil consumer protection action against Uber Technologies, Inc., for making false or misleading statements to consumers and for engaging in a variety of business practices which violate California law.

“Uber has refused to comply with straightforward California laws that protect consumers from fraud and harm,” said District Attorneys George Gascón and Jackie Lacey. “These companies can be innovative in the way they deliver services without ignoring the laws that protect the public.”

According to the complaint filed in San Francisco Superior Court today, Uber has engaged in a variety of unlawful business practices in violation of California Business and Professions Code sections 17200 and 17500. The District Attorneys allege that Uber:

· Makes untrue or misleading representations regarding the quality of the background checks it performs on drivers and the measures it takes to ensure customer safety;

· Charged its UberX customers a $1.00 “Safe Rides Fee” and falsely told those customers that part of that money was paying for an “industry-leading” background check process;

· Uses the Uber App to calculate customer fares based upon a measurement of time and distance without obtaining approval of the technology from the California state agency charged with ensuring that measuring technology is accurate, reliable, and does not facilitate fraud;

· Unlawfully conducts commercial operations at California airports without obtaining authorization from the airport authorities;

· Fraudulently charged a $4.00 “Airport Fee Toll” to customers who used its UberX service for a trip to or from San Francisco International Airport even when the UberX drivers weren’t paying anything to the airport because they did not have permission to operate there.

The suit seeks a permanent injunction requiring Uber to stop violating California law. It also seeks civil penalties for each of these unlawful business acts and practices, as well as full restitution for all California consumers who paid any amount designated as an “Airport Fee Toll” which was not in fact charged by or paid to the airport authority and full restitution for all California consumers who paid any amount designated as a “Safe Rides Fee.”

Please see enclosed Complaint for more information.

 

 

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SAN FRANCISCO AND LOS ANGELES COUNTY DISTRICT ATTORNEYS ANNOUNCE SETTLEMENT WITH LYFT
 

San Francisco — Today, San Francisco District Attorney George Gascón and Los Angeles County District Attorney Jackie Lacey announced the settlement of a civil consumer protection action brought against Lyft, Inc., for misleading representations and unlawful business practices under California Business and Professions Code sections 17200 and 17500.

“The settlement with Lyft demonstrates that technical innovation and corporate responsibility are not incompatible,” said District Attorneys George Gascón and Jackie Lacey. “We commend Lyft for its willingness to work with law enforcement to ensure compliance with the laws that protect California consumers.”

According to the documents filed in San Francisco Superior Court today, the District attorneys alleged that Lyft: (1) made untrue or misleading representations regarding the background checks performed on its drivers; (2) used the Lyft App to calculate customer fares based upon a measurement of time and distance without obtaining approval of the technology from the California state agency charged with ensuring that measuring technology is accurate, reliable, and does not facilitate fraud; and (3) unlawfully conducted commercial operations at California airports without obtaining authorization from the airport authorities.

As a result of the settlement, Lyft has agreed to a permanent injunction prohibiting the company from making misleading statements concerning how far back the information in its background checks goes, and prohibiting the company from making misleading comparisons between its background check process and the background check process for taxi drivers in California. The injunction also requires that Lyft submit its Lyft App to the California Department of Agriculture’s Division of Measurement Standards for evaluation of its accuracy, and cooperate with the Department during testing. Finally, the injunction requires Lyft to obtain express authorization from the California airports to operate on their premises.

Lyft will also pay civil penalties of $500,000. The first $250,000 will be paid within 30 days. The second $250,000 will be waived at the end of a year if Lyft has complied with all of the terms of the injunction.
 

Please see enclosed court filings for more information:

PDF iconUber Complaint

Lyft Complaint 

Lyft Stipulated Judgement and Permanent Injunction 

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