California Prosecutors Sue Ride-Hailing Company Uber Over Background Checks; Lyft Settles
SAN FRANCISCO (AP) — California prosecutors are suing Uber over the ride-booking company's background checks of drivers and other allegations.
The lawsuits filed Tuesday in San Francisco Superior Court are the latest legal hurdles to confront the nascent ride-hailing industry. The industry has been battling lawsuits and regulatory issues over whether the businesses are regulated taxi services or app-making technology companies.
Los Angeles District Attorney Jackie Lacey says "Uber continues to misrepresent and exaggerate background checks on drivers." Lacey says her goal is not to shut down Uber but to stop false advertising.
Another service has agreed to drop similar claims. The San Francisco County District Attorney says Lyft will no longer say its background checks are the "gold standard." Lyft agreed to pay $500,000 and submit its fare-setting app to the state regulators to ensure it's fairly charging riders. It also agreed not to do business at any airport unless it receives a permit.
(Story by: The Associated Press)