Lyft and the New York Attorney General's office have settled a year-long beef, and Lyft has agreed to pay $300,000 in penalties.
The settlement resolves a dispute born in July, 2014, when New York Attorney General Eric T. Schneiderman and the New York State Department of Financial Services filed a lawsuit against Lyft claiming the on-demand ride company let its drivers carry folks in Buffalo and Rochester around without proper insurance.
Around that time, Lyft also faced criticism for its quick launches in Brooklyn and Queens.
Lyft has agreed to pay $300K in fines, without admitting wrongdoing.
“I have always been committed to fostering an innovative and competitive environment in which both new and existing companies can flourish in our great state,” Attorney General Schneiderman said. “However, it’s critical that the laws put in place to protect consumers and ensure fair competition are not violated in the process. Today’s agreement enables Lyft to grow and prosper within the bounds of state and local regulations, while the penalties imposed send the message that companies that attempt to skirt the law will be held accountable. I want to thank former Superintendent Lawsky and the Department of Financial Services for their continued partnership in making New York’s marketplace one where all entrepreneurs can thrive under the same set of rules.”
Here are the other stipulations of the deal, according to the AG's office:
As part of the consent order, Lyft drivers will be required to have auto insurance issued by New York-authorized insurers. The insurance must cover drivers while they have the Lyft app turned on to receive requests to pick up passengers through the end of any rides they provide. Additionally, the consent order prohibits Lyft from offering, selling or providing insurance policies that do not comply with the New York Insurance Law.
The consent order also requires Lyft to comply with all other state as well as municipal laws applicable to vehicles-for-hire. Lyft must also inform the Superintendent, the Attorney General, and the counsel of any municipality or other jurisdiction in the state where it intends to launch its service at least three weeks before such a launch.
"Today's mutually agreed upon settlement does not require any changes to existing Lyft service in New York. The settlement is part of our continued efforts to return true, peer to peer ride sharing to New York State at large, an effort supported by leaders and consumers across the state," Lyft said in a statement.
In other ridesharing news, Uber had a rough week as well.
Image via Lyft, Facebook