Uber Sued By Competitors For False Advertising

Uber is not having a good week. As the ride-sharing firm appeals for a second time an earlier court ruling that bans its UberPOP service in the Netherlands, the corporation was reportedly hit by police raids at its Paris headquarters this week in connection with France’s own decision to fine uninsured and unlicensed Uber drivers.

Reports have also emerged that several companies have now sued Uber for false advertising, adding to a string of legal headaches. A total of 19 taxi firms filed legal action against Uber Technologies in San Francisco last Wednesday (March 18). Plaintiffs are charging the company with false advertising regarding Uber’s claims that it offers “the safest rides on the road.”

According to court documents, the suit claims Uber misleads consumers though its website and blog with the claim, because the background checks and training done for its drivers is less demanding than those done by rival taxi companies. Uber, the plaintiffs argue, does not track any crimes committed by its drivers after an initial background check is completed, and drivers do not have to take a written exam or driver safety class.

The most recent legal action cites “significant reputational harm” done to rival taxi companies. “Uber’s false and misleading advertisements convince customers that UberX offers a safer ride than plaintiffs’ taxi cabs,” the complaint said. “Accordingly, as a result of these representations, customers opt for taking UberX rides instead of taxi cab rides with plaintiffs.”

Reports said these complaints mirror those seen in a similar lawsuit filed last December, also in San Francisco, except the claims accuse Uber of harming consumers.

Plaintiffs accuse Uber of violating the federal Lanham Act and California’s state false advertising laws. In response, a representative for Uber slammed the suit as “frivolous” and “without merit.”

“This lawsuit was filed by an industry that for decades has ignored the safety of riders and drivers,” the response said.