California DAs: Uber, Lyft, And Sidecar Are All Engaging In 'Unlawful Business Practices'
The first illegal practice, the DAs say, is that the companies' websites have misled customers by claiming their background checks screen out drivers "who have ever committed driving violations, DUI, sexual assault, and other criminal offenses," according to a copy of the letter Sidecar sent to Business Insider.
The DAs also told Sidecar, Uber, and Lyft that the way these companies calculate shared ride service fares violates California state law. This method lets customers who are traveling the same way share a car and split the fare.
The DAs told each company that they each must meet with them by Oct. 8 to avoid legal action.
In the meeting, the companies must be prepared to discuss how and when each company will remove statements from their apps, websites, and public statements asserting that Lyft, Sidecar, and Uber's criminal background checks "reveal a driver's criminal history older than seven years." Each company must also remove the "shared rides" payment feature from their respective apps.
"We value innovation and new modes of providing service to the public," San Francisco District Attorney George Gascón said in a statement, according to the San Francisco Chronicle. "However, we need to make sure the safety and well-being of consumers are adequately protected in the process."
Here's what an Uber spokesperson had to say to Business Insider: "Ridesharing is unequivocally supported by the California legislature, the CPUC, the Governor, local jurisdictions across the state and millions of Californians. The DAs have made numerous inaccurate assertions that we will correct and discuss with them."
A blog post from April on Uber's website explains its background check policy in detail:
A Sidecar spokesperson provided this statement to Business Insider:
Lyft did not immediately respond to a request for comment from Business Insider.
A copy of the letter sent to Sidecar from the DAs is embedded below.