Taxi companies sue Uber over misleading people through ads
Taxi companies sue Uber over misleading people through ads

More than a dozen California cab companies charged a lawsuit against Uber Technologies Inc. over misleading advertisements related to the safety provided by the company. According to the complaint filed by Yellow Cab Co. and other operators in Los Angeles, San Francisco and Santa Barbara, the company gives the wrong impression about the background checks it employs for screening of its drivers.

Uber, an American international company headquartered in San Francisco, California, generated $1.2 billion in December at a valuation of $40 billion. The company has been criticized a lot in some cities over its app-based, on- demand transportation service, which used drivers with no taxi or limousine licenses.

The company didn't take the charge seriously and said the lawsuit has been filed by an industry, which does not pay attention to the safety of riders and drivers.

According to complaint filed in San Francisco federal court, Uber tries to influence customers by using its website. The company claims that it provides safety in its services, whereas it doesn't provide such kind of platform, which ensures safety, according to the complaint.

According to Uber, "As riders across the country know, Uber's multi-layered driver screening includes county, federal and multi-state checks and the rating system and traceability of the Uber platform gives riders and drivers unprecedented transparency".

The complaint refers to the violation of the federal Lanham Act, which tackles California's False Advertising Law, false advertising and Unfair Competition Law. The taxi companies have demanded a jury trial and a ban on Uber's false advertising, in addition to an award of damages. However, the amount for the damages was not stated.