Uber competitor Lyft has been cited by the Federal Communications Commission over autodialed text messages, with the commission saying that Lyft is violating the Telephone Consumer Protection Act.
Basically, the FCC says Lyft is spamming people with autodialed answering machine messages without giving those called the option of unsubscribing from the messages.
"Consumers have the right to choose whether they want marketing calls and text to their cell phones," said the FCC's Enforcement Bureau Travis LeBlanc in an interview with VentureBeat. "Today, we again make clear that such calls and texts are unlawful without express written consumer consent."
FCC investigators found (PDF) that while Lyft does say it allows users to opt out of texts and calls, this isn't really the case. Those who do try to opt out will not be able to use Lyft's service because stopping marketing texts from Lyft means stopping all texts from Lyft, including the security confirmation texts users need to log into their Lyft account to order a ride.
A spokesperson said that the company is only now learning of the citation. "This is the first we are seeing of the order and are in the process of reviewing it," said the spokesperson in a statement. "We look forward to working with the FCC to resolve this issue."
If Lyft continues breaking the rules imposed by the FCC, the company could face serious fines and sanctions. The warning also shows that the government is keeping a close eye on Lyft as a startup.
Of course, Lyft and Uber have both dealt with regulatory battles and lawsuits around the country. Local lawmakers have made plenty of moves against the two companies, calling for stricter regulations when it comes to things like insurance, background checks and inspections. There is a certain fear from the taxi industry, especially with the rising popularity of ride-sharing services like Lyft.
The FCC also cited the First National Bank Corporation for violating robotic call regulations (PDF). Reportedly, the bank makes online banking and Apple Pay customers agree to receive autodialed messages in order to use its service. The First National Bank has reportedly not yet received any formal communications from the FCC.
Via: CNet
