Finance, ICT - Uber Agrees To Pay Big Fine To Settle Safety Claim Suit
The ride-sharing service Uber agreed to pay US$25 Million to the US West Coast cities of San Francisco and Los Angeles to settle lawsuits that accused the company of misleading customers about its safety.
"We are pleased that Uber has agreed to comply with state consumer laws," said Los Angeles District Attorney Jackie Lacey. "With this settlement, the ride sharing company has pledged to communicate honestly about its driver background checks and airport fees, important steps to protecting the residents of California."
Under the deal, Uber agrees to no longer refer to itself as "safest ride on the road' or describe its background checks as "the gold standard". It will pay US$5 Million each to the cities of San Francisco and Los Angeles. The remaining $15 million penalty can be waived in two years if Uber complies with all of the terms of the settlement. That's pretty much snack money to a company valued at $51 Billion. Uber's competitor Lyft already paid $500,000 to the two cities in 2014 to settle similar allegations.
Prosecutors from the two cities accused Uber of failing to prevent 25 people with criminal convictions from becoming drivers. Several were registered sex offenders and one was a convicted murderer.
"Accidents and incidents do happen," the company said in a statement, "That's why we need to ensure that the language used to describe safety at Uber is clear and precise."