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Uber settles its case with customers in California for $25 Million

Uber has settled a case in which it was accused of misleading consumers in the regards to the safety of its ride sharing service and will be paying $25 million to the prosecutors.

In December 2014, a civil lawsuit was filed over the company's policy of requiring background checks for drivers working in Los Angeles and San Francisco. Uber used the policy as a way of advertising its service as the “safest ride on the road.”

Jackie Lacey, the District Attorney of Los Angeles, filed a consumer-protection lawsuit which uncovered 25 instances of Uber drivers with serious criminal convictions on their records. These included identity theft, burglary, child sex offences and even one murder charge.

Another scandal emerged when Uber was accused of misleading its drivers in regard to the fees it charged for rides to the airport. A $4 fee was charged to all passengers travelling to or from airports in California. The money collected from this fee was supposed to be paid to the airports. However, Uber did not pay the airports and even charged passengers travelling to airports where it was not authorised to operate.

The company will be paying the $25 million settlement in two parts with $10 million going to the district attorneys in LA and San Francisco while the additional $15 million could be waived if Uber can comply with the terms listed it the agreement over the next two years.

Uber will have to change its marketing campaign and remove all of the misleading claims it has made in regard to its service. The company will also no longer offer rides to unauthorised airports.

Image Credit: Prathan Chorruangsak / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.