DOJ sues Uber for allegedly charging wait fees to customers with disabilities

On Wednesday, June 9, 2021, people wore protective masks as they walked past Uber Technologies Inc.'s headquarters in San Francisco.
Uber was sued Wednesday by the Department of Justice for charging customers with disabilities wait-time fees.

The lawsuit was filed in the U.S. District Court, Northern District of California. It alleges that Uber violated Title III of America's Disabilities Act. This law prohibits discrimination by private transport companies. Uber charges customers with disabilities a fee for taking longer to get in the car.

In afternoon trading, the stock of the company fell by 5%.

Uber stated in an emailed statement that it disagrees with DOJ's assertion that policies violate the ADA.

"It's been our policy to refund the wait time fees charged to disabled riders whenever we are notified." Uber spokesperson said that fees will now be waived for any disabled rider after a recent update last week.

The spokesperson explained that all riders are subject to wait time fees to pay drivers for waiting more than two minutes. However, they are not intended to be charged to riders who arrive at their pickup location on time but take longer to get in the car. "We know that Uber is a popular choice for disabled riders. We have been actively negotiating with the DOJ to resolve any confusion or concerns before this disappointing and surprising lawsuit."

Subscribe to CNBC YouTube.