Uber Can be Sued By Cab companies

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Uber is competing against BMW,   Audi and Mercedes-Benz for a mapping service,   according to the New York Times.

Uber can now be sued by taxi cab companies over the service’s claims that it offers the safest rides for travelers. Jon Tigar, a Federal District Court judge in San Francisco, issued the ruling on Friday which will allow a lawsuit brought against Uber to go forward.

The ride sharing service had sought a dismissal of the suit.

The ruling came out of a suit filed back in March by a group of taxi companies which accused Uber of false advertising. By making the claim, Uber implies that traditional taxi companies re less safe.

Those companies countered that Uber drivers do not need to have their fingerprints checked or go through government background checks as taxi services require of their drivers.

While Judge Tigar agreed with the claims made by the plaintiffs, he did rule that they could not sue Uber on the grounds of fraud. His ruling was made in accordance with the Lanham Act, a federal law on false advertising. The judge said that the taxi companies were not victims of any false advertising — only consumers can make that claim — but they could sue for any harm which came to their businesses from claims made by Uber if they are proven to have been false in a court of law.

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