The on-demand ride service Uber Technologies Inc. has agreed topay $28.5 million to settle two San Francisco class actions overthe way it advertises its services.

Uber announced on its website Thursday that it is asking U.S.District Judge Jon Tigar for approval to settle Philliben v. Uberand Mena v. Uber. The cases were brought by Uber passengers overthe company's “safe ride fee,” which Uber claimed went to supportits “industry leading” background checks process.

Passengers represented by West Hollywood's Adhoot & Wolfson;Los Angeles' Arias, Sanguinetti, Stahle & Torrijos; andDetroit's Liddle & Dubin argued that Uber's background checksare in fact “woefully inadequate and fall well short” of what'srequired of taxi drivers and other commercial providers oftransportation.

The fee of roughly $1 to $2 is charged to passengers on premiumUber rides such as UberX and UberXL, according to the latestcomplaint filed in the cases.

Uber is represented in both actions by Irell & Manella. Thecompany said on its website Thursday that as part of the settlementUber has agreed to rename the “safe ride fee” a “booking fee” andapply it to both safety and operational costs. “This is similar tothe approach that Lyft has taken,” the company noted.

Uber will refund $28.5 million to about 25 million passengerswho used the service from 2013 until January of this year,according to the announcement, which did not mention attorney fees.The parties agreed to the settlement in principle last monthfollowing several rounds of mediation last fall, court documentsindicate.

Two related class actions brought by taxi companies and taximedallion holders alleging false advertising and unfair competitionremain pending before Tigar.

____________________

This story was first published in The Recorder. Read theoriginal vesion here.