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Uber bows to Philippines suspension after show of defiance
 by Staff Writers
 Manila (AFP) Aug 15, 2017


Uber settles complaint over data protection for riders, drivers
Washington (AFP) Aug 15, 2017 - Uber agreed to implement new data protection measures to settle complaints that it failed to prevent improper snooping on driver and customer information, officials said Tuesday.

The ridesharing giant had faced complaints that it allowed some employees to use the "God view" to monitor customer movements that could allow Uber managers to keep tabs on journalists investigating the ridesharing giant.

A separate complaint said that Uber had also failed to prevent a data breach that allowed hackers to gain access to personal information on some 100,000 drivers.

The Federal Trade Commission announced a settlement on an investigation into allegations that Uber failed to live up to data protection claims. It requires Uber to submit to independent privacy audits every two years for the next 20 years.

"Uber failed consumers in two key ways: First by misrepresenting the extent to which it monitored its employees' access to personal information about users and drivers, and second by misrepresenting that it took reasonable steps to secure that data," said FTC acting chairman Maureen Ohlhausen in a statement.

"This case shows that, even if you're a fast growing company, you can't leave consumers behind: you must honor your privacy and security promises."

Ohlhausen said the agency began its investigation in response to a "consumer uproar" over reports that Uber executives used "God view," indicating the whereabouts of riders, for parties and other purposes.

"We've always treated geolocation as sensitive information," Ohlhausen told a conference call.

The settlement contains no financial penalty, but Uber agreed to implement "a comprehensive privacy program" that will include independent audits, the FTC said. If it fails to live up to the agreement it could face fines.

The agency which enforces consumer and privacy protection said Uber had announced in November 2014 -- but failed to enforce -- a "strict policy" prohibiting employees from accessing rider and driver data except for legitimate business purposes.

The FTC added in a statement that Uber "did not take reasonable, low-cost measures" that could have prevented a breach by using better practices to protect data in the internet cloud.

Uber, which has become the world's most valuable venture-backed startup despite complaints from regulators and others, has been roiled by a series of revelations about a toxic work culture and questionable business practices.

Its chief executive Travis Kalanick resigned in June, but investors and board members are battling over his successor and a lawsuit by one investor alleges Kalanick has been working behind the scenes to manipulate the board.

Uber was forced to suspend operations in the Philippines Tuesday, after the ride-sharing giant's efforts to appeal a one-month ban were quashed as it tussles with authorities over driver permits.

The US firm had slammed Monday's decision by transport authorities to impose the sanctions as a "blatant violation" of its rights earlier Tuesday, relaunching its app and announcing a legal challenge.

But by evening it conceded that it would comply with the suspension after the Land Transportation and Franchising Board (LTFRB) announced it had struck down Uber's appeal and vowed to punish drivers caught violating the suspension.

"We are disappointed with the LTFRB's decision," an Uber statement said, adding it hoped to resolve the matter soon.

Transport authorities accuse the firm, which has operated in the Philippines since 2014, of failing to have the proper permits to license its drivers.

The ban has already sparked outrage from commuters who found Uber a welcome alternative to the country's notoriously poor public vehicles.

With most Uber drivers off the roads Tuesday, Manila commuters queued for rides on overcrowded buses and trains, an ordeal that often takes several hours a day.

"It may not be a popular decision (but) we will continue to do what is legal and right," transport authority spokeswoman Aileen Lizada told AFP, adding that it was "a good thing (Uber) are finally listening".

She said two Uber drivers had been apprehended on Tuesday for violating the suspension.

They face fines of 120,000 pesos ($2,350) and having their vehicles impounded for three months.

- 'Cruel and absurd' -

Transport authorities require Uber to get permits for its drivers and vehicles, in the same way taxi companies must.

But the firm insists the drivers are independent contractors and are exempt from the rules.

Lizada said that during a recent hearing, Uber officials had acknowledged having 68,000 drivers in the Philippines and handling 150,000 rides a day.

The Philippine suspension enraged many local commuters.

"The decision of the LTFRB to suspend Uber is both cruel and absurd," said Senator Grace Poe, who heads the upper chamber's transport committee.

The dispute is Uber's latest hurdle in Asia, where it also faced a two-month hiatus in Taiwan this year. It has operated illegally in Thailand since 2014, though law enforcement has been patchy, with roughly 1.5 million people downloading the app.

The firm is currently lobbying for a tweak to the decades-old Thai motor law to allow ride-sharing apps.

Philippine President Rodrigo Duterte's spokesman Ernesto Abella on Tuesday defended the transport authority's decision, but said the government affirmed "the positive and beneficial service offered by the transport network companies".

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