Uber, the popular cab-hailing service has agreed to pay $10 million to resolve the lawsuit it faces from California prosecutors.
In 2014, prosecutors in Los Angeles and San Francisco sued Uber claiming that it misinformed customers about the standard of the background checks it performs on its drivers. The lawsuit against Uber alleged that the ride-hailing service misled passengers into believing that its criminal screening of potential drivers was thorough and in-depth.
Moreover, the prosecutors claimed that Uber's process for background verification did not use fingerprint checks to verify older convictions. The service merely relied on searching the driver's name in criminal databases and files of motor vehicle departments for the last seven years.
Uber has been steadily attempting to safeguard its image and safety standards despite accusations that the service's drivers assaulted passengers.
However, Uber has given in to the prosecutors' settlement claims and agreed to shell out at least $10 million. On Thursday, Uber signed the settlement in San Francisco.
"We are pleased that Uber has agreed to comply with state consumer laws. With this settlement, the ride-sharing company has pledged to communicate honestly about its driver background checks and airport fees, important steps to protecting the residents of California," said Jackie Lacey, L.A. County District Attorney.
According to the settlement which was approved by Judge Mary Wiss of San Francisco Superior Court, Uber has agreed that it will pay $10 million within 60 days to both Los Angeles and San Francisco counties. In the event Uber does not comply with the dictated terms of the settlement in the ensuing two years, it will have to pay an additional $15 million civil penalty.
The injunction also necessitates that Uber's fare calculation app for passengers is in keeping with the accuracy standards the California Department of Agriculture's Division of Measurement Standards has set.
Moreover the agreement decrees that Uber has to have permission from airports in California if its drivers are to be allowed to pick and drop passengers off. Additionally, Uber will not be able to charge the airport toll unless the driver or the service pays the entire amount to the airport itself.
The ride-hailing service has revealed that it has already brought about several changes sought by the prosecutors. However, it did not admit to any wrongdoing.
"We're glad to put this case behind us and excited to redouble our efforts serving riders and drivers across the state of California," said Uber.
