Car Service Mobile App Owner Hit With Chicago Class Action

Law360, New York (October 2, 2012, 3:55 PM EDT) -- Chicago consumers hit the company behind a new smartphone app-based cab and car service with a proposed class action Monday in Illinois state court alleging it defrauded passengers by pocketing most of the gratuities they paid to drivers.

Lead plaintiff Caren Ehret accuses San Francisco-based Uber Technologies Inc. of falsely advertising as a gratuity the extra 20 percent it automatically tacks on to all metered fares for cab or car service booked through its mobile app by smartphone users. The complaint alleges that Uber keeps a substantial portion of that so-called gratuity, making it a de facto service charge or inflated...

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