California District Attorneys Settle with Lyft, File Lawsuit Against Uber
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QUIQUE GARCIA/AFP/Getty Images(LOS ANGELES) — District attorneys in both San Francisco and Los Angeles announced on Tuesday that they had settled a civil consumer protection action against ride-sharing app Lyft, while also filing a lawsuit against Lyft’s competitor Uber for, “making false and misleading statements to consumers.”
In a press release, Los Angeles District Attorney Jackie Lacey said that Lyft had agreed to a permanent injunction that prohibited the company from making false claims about its background checks. The same injunction requires that the company to submit its app to the California Department of Agriculture’s Division of Management Standards to ensure accuracy.
Lyft will also have to obtain authorization from California airports to operate on their grounds and pay $500,000 in civil penalties.
Uber, on the other hand, is accused of engaging in unlawful business practices, including making untrue or misleading representations about the background checks done on Uber drivers, illegally having drivers work at airports without authorization, and charging a fraudulent $4 fee for travelers going to or from San Francisco International Airport.
The two district attorneys seek a permanent injunction against Uber, requiring it to cease illegal activities, as well as civil penalties against the company for its illegal business practices.
“Unfortunately, Uber, unlike Lyft, has refused to comply with reasonable regulations as required by California law,” Lacey said. “As a result Uber continues to put consumers at risk by misleading the public about the background checks of its drivers and its unwillingness to ensure that correct fares are charged.”
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