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Prosecutors in San Francisco and Los Angeles Sue Uber, Settle With Lyft

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Uber At $40 Billion Valuation Would Eclipse Twitter And Hertz
The Uber Technologies Inc. logo is displayed on the window of a vehicle after dropping off a passenger at Ronald Reagan National Airport (DCA) in Washington, D.C., U.S., on Wednesday, Nov. 26, 2014.Andrew Harrer—Bloomberg/Getty Images
By Katy Steinmetz

Prosecutors in Los Angeles and San Francisco announced a settlement with ridesharing company Lyft on Tuesday for making “false and misleading statements” to consumers about background checks for vetting drivers, but filed a similar lawsuit against Uber.

The civil suit against Uber alleges that the company not only made “untrue and misleading” statements about the checks, according to a statement from the office of Los Angeles County District Attorney Jackie Lacey, but has also been illegally operating at airports across the state and charging San Francisco riders a “fraudulent” $4 airport fee despite drivers not paying one to the airport. The suit seeks civil penalties as well as reimbursements for affected customers.

At a press conference, according to Bloomberg, the prosecutors said Uber had touted strict vetting requirements to justify a $1 “safety fee” passed onto riders, “when in fact taxi drivers by law undergo more comprehensive background checks that include fingerprinting.” Though the company no longer uses the phrase, Uber has called their safety checks “industry-leading.”

See Uber Protests From Around the World

French Taxi drivers burn tires as they protest in the southern city of Marseille on June 25, 2015 as they demonstrate against UberPOP, a popular taxi app that is facing fierce opposition from traditional cabs.
French Taxi drivers burn tires as they protest in the southern city of Marseille on June 25, 2015 as they demonstrate against UberPOP, a popular taxi app that is facing fierce opposition from traditional cabs. Anne-Christine Poujoulat—AFP/Getty Images
French taxi drivers protest Uber
Police officers in riot gear attempt to flip a car back onto it's wheels at Porte Maillot on June 25, 2015 in Paris. Protesters blocked roads to airports and train stations, overturning cars and setting tires on fire.Guillaume de Senneville—Demotix/Corbis
Hundreds of taxi drivers gather next to the Olympia Stadium to protest ride-sharing apps on June 11, 2014 in Berlin.
Hundreds of taxi drivers gather next to the Olympia Stadium to protest ride-sharing apps on June 11, 2014 in Berlin.Sean Gallup—Getty Images
A demonstrator kicks a car, suspected of being a private taxi during a 24 hour taxi strike and protest in Madrid on June 11, 2014.
A demonstrator kicks a car, suspected of being a private taxi during a 24 hour taxi strike and protest in Madrid on June 11, 2014. Paul White—AP
A taxi driver listens to speeches by his colleagues, during an Europe-wide protest of licensed taxi drivers against taxi hailing apps that are feared to flush unregulated private drivers into the market, in front of the Olympic stadium in Berlin on June 11, 2014.
A taxi driver listens to speeches by his colleagues, during an Europe-wide protest of licensed taxi drivers against taxi hailing apps that are feared to flush unregulated private drivers into the market, in front of the Olympic stadium in Berlin on June 11, 2014. Thomas Peter—Reuters
Taxi drivers hold a banner during a protest in Barcelona on June 11, 2014.
Taxi drivers hold a banner during a protest in Barcelona on June 11, 2014. Josep Lago—AFP/Getty Images
London taxi's line up on The Mall during a protest against a new smart phone app, 'Uber' on June 11, 2014 in London.
London taxi's line up on The Mall during a protest against a new smart phone app, 'Uber' on June 11, 2014 in London.Dan Kitwood—Getty Images
Taxi drivers park their cars and honk the horn in protest on Pennsylvania Avenue, bringing street traffic to a stop as they demand an end to ride sharing services such as Uber X and Lyft on June 25, 2014, in Washington.
Taxi drivers park their cars and honk the horn in protest on Pennsylvania Avenue, bringing street traffic to a stop as they demand an end to ride sharing services such as Uber X and Lyft on June 25, 2014, in Washington.PAUL J. RICHARDS—AFP/Getty Images
An Italian taxi driver distributes leaflets reading "Don't take an illegal taxi, take a white regular taxi" during a protest on June 11, 2014 in Rome.
An Italian taxi driver distributes leaflets reading "Don't take an illegal taxi, take a white regular taxi" during a protest on June 11, 2014 in Rome.ANDREAS SOLARO—AFP/Getty Images
Taxis drivers block a highway outside Paris, near Roissy on June 11, 2014, as they take part in a demonstration to protest the growing number of minicabs, known in France as Voitures de Tourisme avec Chauffeurs (VTC).
Taxis drivers block a highway outside Paris, near Roissy on June 11, 2014, as they take part in a demonstration to protest the growing number of minicabs, known in France as Voitures de Tourisme avec Chauffeurs (VTC). Fred Dufour—AFP/Getty Images

Previous reports have surfaced about aspiring Uber drivers applying for background checks through a third party by submitting information online, with no requirement to appear in person before gaining approval to work through the system. One driver told Valleywag that, “One person could fill out all the info and hand off the approved account to another person” and that he was aware of multiple drivers “sharing an account.” Gascon called background checks without assurances like fingerprinting “completely worthless.”

Lacey and San Francisco District Attorney George Gascón had threatened to levy civil penalties against the companies in September, for failing to meet consumer protection standards.

Lyft has agreed to pay a $500,000 civil penalty, as well as submit its app to additional government scrutiny and obtain express permission for operating at airports in the state. The settlement, according to the statement from Lacey’s office, also includes a permanent injunction that prohibits the company from making “misleading statements about its background checks.”

This comes at a time when cities like New Dehli and Portland are moving to block services like Uber from operating, due to concerns about oversight and safety.

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