Uber Rideshare Class Action Settlement at $20M
Uber Rideshare Class Action Settlement
Uber recently agreed to pay $20 million to settle a class-action lawsuit that alleged the company was sending text messages to drivers and riders without their permission in violation of the Telephone Consumer Protection Act (TCPA). The texts allegedly solicited the recipients to become Uber drivers.
Spam Text Messages and Robocalls Are Common
Many cell phone owners are interrupted throughout the day by unwanted robocalls calls and spam texts. Congress enacted the TCPA to protect consumers from the annoying and harassing robocalls and spam texts. Companies that make automated marketing calls or texts without the recipient’s prior consent can be held liable for between $500 and $1,500 for each robocall.
Uber Alters its Business Practice
As part of the settlement, Uber will end its refer-a-friend program where drivers were entitled to compensation if they persuaded their friends to drive for Uber.
Uber Driver Competence is Important
Uber may have changed the way in which it solicits and obtains new drivers. But it remains important that Uber properly vet potential drivers to make sure that Uber passengers are driven by trustworthy and safe drivers and that drivers and passengers in other cars on the road are not injured by a dangerous Uber driver.