Uber to Pay Out $28.5 Million Settlement in Consumer Liability Case
Uber has agreed to pay $28.5 million to 25 million customers in an attempt to settle two class action lawsuits over the way the company represented background checks, and passenger fees. The company is also required to change its safety-related advertising language, including halting the use of the term “Safe Ride Fee.” Once the settlement is approved by a judge, any customer who used Uber between Jan 1, 2013 and Jan 31, 2016 will receive and email notification giving them the option to be paid by credit card or receive a credit to their rider account. The two separate cases accused Uber of false advertising, saying that despite the company’s claims of being “safer than a taxi,” and conducting “industry leading,” background checks, it didn’t even require drivers to submit their fingerprints or appear in person to apply, something that taxi regulators constantly require. Uber has maintained that their safety features are “industry leading,” because they enable drivers and passengers to know who they’re riding with, track their rides via GPS, and give all passengers a digital record of their trip. “However, no means of transportation can ever be 100 percent safe,” the company said in a blog post. “We are glad to put these cases behind us and we will continue to invest in new technology and great customer services so that we can help improve safety in the cities we serve.”
Uber is also dealing with lawsuits filed by its employees, claiming that the company has been withholding wages. According to one driver, who has been with the company for a year and a half, Uber tells customers that tips are included in the fare, which is simply not true. Another lawsuit deals with employee misclassification, claiming that Uber cheated employees out of rights such as business-expense reimbursements, and gratuities by misclassifying them as independent contractors, rather than company employees.
If you have suffered damages due to misleading marketing practices from companies like Uber, the law firm of Hodes Milman Liebeck can provide you with the assistance you need. Contact us today online at hmlm.com or call 866-730-1976 for a complimentary case evaluation.