County district attorneys in Los Angeles and San Francisco sued Uber, the ridesharing company, and announced a settlement with the company’s competitor, Lyft, on Tuesday.
In a civil lawsuit announced by L.A. District Attorney Jackie Lacey and San Francisco DA George Gascon, Uber Technologies, Inc., was accused of making false and misleading statements to customers about its driver background checks.
The company uses “industry-leading” background checks that are made “completely worthless” by the failure to fingerprint its drivers, Gascon said, according to the Los Angeles Times.
Uber allegedly violated state business law by making untrue statements about the checks and by “unlawfully having its drivers work at airports across the state without obtaining authorization from airport officials,” according to a news release from Lacey’s office.
Uber also allegedly fraudulently charged a $4 "airport fee toll" to San Francisco customers going to and from the city’s airport, which was not getting receiving any fees from the company.
"Unfortunately, Uber, unlike Lyft, has refused to comply with reasonable regulations as required by California law," Lacey said in the news release. "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."
Lyft, Inc., settled a civil consumer protection action brought against it over its own statements about its driver background checks.
It agreed to stop making misleading statements and to submit its mobile app for monitoring by the state agency that seeks to ensure accuracy in commercial measurements.
Lyft, which must pay penalties of $500,000, must also get authorization from California airports to operate on their premises.