Uber pays £7m settlement in background check dispute

Uber must not market itself as the “safest ride on the road”

Uber said that it has changed the misleading descriptions of its service

Uber, the ride-sharing company has agreed to pay $10 million (£7 million) to settle a dispute over its background checks for drivers.

District attorneys in San Francisco and Los Angeles accused Uber of misleading its customers about its driver’s background checks. As part of the deal, Uber must not market itself as the “safest ride on the road” or call its background checks “the gold standard.”

Uber will have to pay an additional $15 million penalty, if it fails to comply with the terms of the agreement.

"It sends a clear message to all businesses, and to startups in particular, that in the quest to quickly obtain market share laws designed to protect consumers cannot be ignored," George Gascón, San Francisco District Attorney, said.

The civil complaint, filed in December 2014, also contended that Uber drivers work at airports without obtaining authorization, and in the case of San Francisco, charged a $4 extra fee to passengers traveling there, without paying anything to the airport.

Uber said in a statement that it has changed the misleading descriptions of its service.

The company has also adjusted its airport toll charges and now only offers services at airports where it is permitted to.

"We're glad to put this case behind us and excited to redouble our efforts serving riders and drivers across the state of California," Uber said.

Lyft, Uber’s ride-hailing rival paid $500,000 in 2014 to settle similar allegations from the two district attorneys.

Additional reporting by Reuters