Uber Technologies Inc. has agreed to pay $10 million, and possibly $15 million more, to settle charges levied by the district attorneys of San Francisco and Los Angeles concerning driver background checks. San Francisco DA George Gascon said in a statement that Uber will pay $10 million up front and have an additional payment of $15 million waived if it complies with terms of a permanent injunction that is also part of the settlement. “The result we achieved today goes well beyond its impact on Uber,” Gascon said in the statement. “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.” The charges of unlawful business practices centered on allegedly misleading claims about the strength of Uber’s background checks for drivers, as well as fees charged for rides to the airport. Similar allegations in class-action lawsuits led to Uber’s agreement to pay a $28.5 million settlement earlier this year. Uber rival Lyft settled with the district attorneys for $500,000 before charges were actually filed.
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