Uber Caught in California Lawsuit; Fined $7.3 Million
Staff ReporterUber, the popular taxi search app, has been fined $7.3 million by a Californian court because it had misleading information about how the operations were run. They also failed to deliver the complete records on their users.
The California Public Utilities Commission has ordered a suspension of the company in the state. When Uber was registered in the state back in 2013, they indicated in their company rules that they are serving all users regardless of the location and physical disposition.
However, when the CPUC asked for complete reports for the entire 2013, they were not able to deliver. The CPUC tried to collect the data on the users who have specifically asked for vehicles that can accommodate animals or wheel chairs. At the same time, the CPUC is looking for the data on the users' ZIP codes. They would like to know how many of these requests were fulfilled and how many were rejected.
CPUC spokesperson Constance Gordon said the court gave them about a year to complete their reports, but they still did not reach out.
The court then filed a ban for Uber's operation in the state. Gordon added that the ban will remain in effect until they have completely submitted all of the required documents.
On the other hand, Uber stated the decision has disappointed them, according to LA Times.
Eva Behrend, company spokeswoman, said they are going to appeal the court's decision because they have already provided the required amount of data that the CPUC has been asking for. She added that their data showed no complaints from the users within the California area.
However, Marilyn Golden, senior policy analyst from Disability Rights Education & Defense Fund in Berkeley, said the court's decision was just.
"This industry has done everything it can to avoid, dismiss and coerce themselves out of regulation, and this decision is welcome from that standpoint," she said. "They've been scofflaws. They take every advantage and avoid every requirement."
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