Uber has been ordered to pay at least $10 million to settle a lawsuit accusing the company of misleading customers about the safety of its service. Foremost in this lawsuit was the accusation that Uber’s background checks on its drivers were not as thorough as advertised to customers.
The conclusion of the lawsuit “sends a clear message to all businesses…that in the quest to quickly obtain market share, laws designed to protect consumers cannot be ignored,” said District Attorney George Gascón in a statement.
This is the latest of many legal issues that Uber has faced in its bid to become a household name worldwide. The transportation company has been embroiled in ongoing legal issues and scandal across the globe. Allegations of abuse by Uber drivers, concerns for the security of the the taxi industry and murky legality have marred Uber’s rise to prominence. In Australia, Uber is illegal in Queensland, South Australia (although this is changing), Victoria, Tasmania and the Northern Territory. Although this hasn’t stopped many keen drivers, there are heavy fines in these areas.
This latest US ruling means that they will have to be much more stringent with their background checks to ensure the safety of their passengers. Hopefully this will apply worldwide.