Why the feds are cracking down on Uber, Lyft, and others that don’t abide by rules

Aug 5, 2021 Corporate

Two weeks after a federal judge ordered ride-hailing and car-hail companies to stop accepting money from government contractors, a new crackdown by the Transportation Security Administration has come in response to another complaint.

Transportation Security Administrator John Pistole said on Monday that the agency is cracking down for several companies that it believes are failing to comply with the law.

He said that companies could face fines of up to $1,000 per day or even be arrested.

I’m concerned that companies are operating with a mindset of, ‘I’m not going to comply, and we’re going to continue to take this against them and we’ll get this done in a fair manner,’ Pistole told reporters during a briefing at the Department of Homeland Security.

Pistole said that he plans to ask the Federal Aviation Administration to enforce its own rules on ride-sharing companies and that he will be asking for additional information from the companies.

The FAA did not immediately respond to a request for comment.

Pistole made the comments in response the announcement by Transportation Secretary Elaine Duke, who said that her agency will not allow ride-sharing companies to use government funds for advertising.

Duke said the agency will take steps to force ride-share companies to conduct background checks on drivers and to provide drivers with a receipt that shows they paid the government for their services.

The Department of Transportation also plans to review the background checks of companies that accept government grants and loans and will work with the Federal Trade Commission and the Securities and Exchange Commission to investigate any violations of the law, she said.

Critics say that ride-shared companies operate on a gray area, but Pistole did not rule out using the same regulations to regulate ride-booking companies.

He also said that ride services must follow federal guidelines on the minimum age of riders and the number of passengers allowed in a vehicle.

“That’s not to say that we can’t do some of these things that are within our authority,” he said.

“I would certainly be open to that, but that’s not our goal.”

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