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Boasts About Safe Rides|Will Cost Uber $28.5M

SAN FRANCISCO (CN) - Uber will pay $28.5 million to settle two federal class actions claiming that marketing and in-app information misled consumers about the ride-sharing service's safety.

The proposed settlement will cover all Uber customers worldwide who used the service between Jan. 1, 2013 and Jan. 31, 2016, and it will require the company to avoid using certain language in its safety-related advertising - for example, the previously used term "safe ride fee" will become "booking fee."

"No means of transportation can ever be 100 percent safe," the company said in a statement. "That's why it's important to ensure that the language we use to describe safety at Uber is clear and precise."

The booking fee will be used to cover safety and additional operational costs, Uber said.

Uber's settlement comes not long after the California Public Utilities Commission fined the company $7.6 million for delaying responses to requests for safety information and other data.

The plaintiffs' lead counsel did not respond to an email requesting comment on Tuesday.

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