Santa Clara, CA: Uber has agreed to pay $28.5 million to settle a consumer fraud class action lawsuit involving some 25 million riders who allege the ride share and taxi service mislead customers about its fees and safety procedures.
Specifically, the lawsuit claimed that Uber, which uses a smartphone app to receive ride requests and then sends the requests to its drivers, charged an extra "safe rides fee"to cover what the company called "industry-leading background checks"on its drivers.
Additionally, under the terms of the settlement, Uber will not describe or title any fee that it charges for its services, including any charge for its rideshare services, as the "safe rides fee."Further, the company agreed that it will not use the terms "best available,""industry leading,""gold standard,""safest"or "best-in-class"in connection with its background checks, in any of its commercial advertising.
Uber has also agreed not to use the phrases "safest ride on the road,""strictest safety standards possible,""safest experience on the road,""best in class safety and accountability,""safest transportation option,""background checks that exceed any local or national standard"or "safest possible platform"to describe its rideshare services.
Uber said it will rename the safe ride fee a "booking fee,"explaining that "It will be used to cover safety as well as additional operational costs that could arise in the future."
