Ride-sharing company Lyft violates the Telephone Consumer Protection Act by requiring consumers to receive marketing messages as a condition of using the service, the Federal Communications Commission said on Friday.
According to the FCC, Lyft’s app prevents users from accessing the service if they decide not to accept automated marketing calls and text messages.
The investigation by FCC into Lyft’s compliance with FCC regulation reveals that in stark contrast to what is mentioned in the terms and conditions, Lyft does not provide unsubscribe options to customers. If customers are capable of find the decide-out web page by navigating the corporate’s web site, after which select to decide out, they don’t seem to be ready to make use of Lyft’s service, the FCC mentioned.
“Consumers have the right to choose whether they want marketing calls and texts to their cell phones”, FCC Enforcement Bureau head Travis LeBlanc said in a statement.
A Lyft spokeswoman said the company is only just learning of the citation. “We look forward to working with the FCC to resolve this issue”, she said.
Lyft and its journey-hailing rival Uber have handled regulatory battles, stop-and-desist letters and lawsuits from states and cities throughout the nation.
Ride-hailing companies are not very well-spoken of, from Pennsylvania to Texas and Nevada, as local lawmakers have been repeatedly calling for more rigid rules on driver background checks, insurance, and vehicle inspections. Last month, FCC procured a fine of almost $3 million against a travel marketer for making unsolicited calls, and First National Bank was also charged today with similar accusations of having created compulsions for users to sign up to receive automated messages before being able to use online banking or Apple Pay. Because of this the commission has determined that Lyft effectively requires all users to submit to marketing texts and calls in order to use its service.