News Releases

December 9, 2014: San Francisco and Los Angeles County DAs Announce Settlement With Lyft, Filing Against Uber

Shiara Dávila-Morales, Media Chief
(213) 257-2000

San Francisco District Attorney George Gascón and Los Angeles County District Attorney Jackie Lacey announced today a settlement of a civil consumer protection action brought against Lyft, Inc., while filing a lawsuit against Uber Technologies, Inc., for making false and misleading statements to consumers.

In the Lyft settlement, the company agreed to a permanent injunction prohibiting the company from making misleading statements about its background checks. The injunction also requires that Lyft submit its Lyft App to the California Department of Agriculture’s Division of Measurement Standards for evaluation of its accuracy. Finally, the injunction requires Lyft to obtain express authorization from California airports to operate on their premises.

Lyft also will pay civil penalties of $500,000.

“The settlement with Lyft demonstrates that technical innovation and corporate responsibility are not incompatible,” said District Attorneys George Gascón and Jackie Lacey. “We commend Lyft for its willingness to work with law enforcement to ensure compliance with the laws that protect California consumers.”

Meanwhile, a civil complaint filed against Uber claims the company engaged in a variety of unlawful business practices in violation of California Business and Professions Code sections 17200 and 17500.

Uber is accused of making untrue or misleading representations regarding the quality of background checks it performs on drivers, unlawfully having its drivers work at airports across the state without obtaining authorization from airport officials and fraudulently charging a $4 “airport fee toll” to customers traveling to and from San Francisco International Airport even though Uber drivers weren’t paying anything to the airport.

The suit seeks a permanent injunction requiring Uber to stop violating California law. It also seeks civil penalties for each of these unlawful business acts and practices, as well as full restitution for all California consumers who paid the airport toll.

“Unfortunately, Uber, unlike Lyft, has refused to comply with reasonable regulations as required by California law,” District Attorney Lacey said. “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.”

The cases were investigated by the San Francisco District Attorney’s Office and the Los Angeles County District Attorney’s Consumer Protection Division.