Government Law

Three cities sue Uber, citing noncompliance with state laws and municipal regulations

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At least three cities filed suit this week against the operators of the Uber ride-sharing smartphone application.

Although Uber’s leaders say they are merely providing information to drivers and passengers who wish to connect with each other, officials in Los Angeles, San Francisco and Portland, Oregon, see the situation differently.

They say Uber needs to comply with business regulations, as taxis and other commercial transportation companies do, according to KGW, the Los Angeles Times (sub. req.) and the San Francisco Chronicle. Doing so would admittedly cost Uber money that the company doesn’t want to spend.

“Uber refused to comply with straightforward California laws to protect consumers from harm,” said San Francisco District Attorney George Gascón at a Tuesday press conference.

He and the Los Angeles district attorney say Uber claims to perform background checks, but they are ineffective because the company doesn’t fingerprint drivers. Also at issue in their San Francisco Superior Court case are fares and fees charged to passengers.

“It’s not our goal to shut them down,” said LA’s district attorney, Jackie Lacey. “What we’re saying is the advertising is false.”

An Uber spokeswoman told the Times that the company will talk with the DAs and hopes to resolve the case. “Californians and California lawmakers all agree—Uber is an integral, safe and established part of the transportation ecosystem in the Golden State,” Eva Behrend said.

Meanwhile, in Portland, the case originally filed by the city in Multnomah County Circuit Court on Monday was removed by Uber to federal district court on Tuesday, the Oregonian reports.

In a cease-and-desist letter, the city has also threatened to impound the vehicles of those who respond to Uber requests for transportation services.

Related coverage:

ABAJournal.com: “Is an Uber ride covered if an accident occurs? Insurance representatives are dubious”

ABA Journal: “Internet car companies offer convenience, but lawyers see caution signs”

Boston Globe: “Governor Patrick to seek state oversight of Uber, Lyft”

Daily Caller: “San Antonio May Drive Uber Out Of Town”

Mashable: “Uber’s worst-case scenario: slowing down”

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