In a recent turn of events, Attorney General Brian L. Schwalb made an announcement confirming that Getaround, Inc., a peer-to-peer car sharing company, has agreed to refund DC residents to the tune of $75,000. According to a report by the Office of the Attorney General (OAG), this settlement follows allegations that the company misled its customers about insurance coverage and charged them exorbitant damage fees.
This agreement marks yet another legal hurdle for the embattled tech firm, which ceased its operations in North America earlier this year. The OAG's investigation, going deep into the company's practices, revealed that over 50 customers were given the impression of comprehensive insurance coverage that left them footing sizable bills. "This settlement puts money back into the pockets of DC residents who were misled by Getaround and charged large damage fees after being led to believe that they were covered by insurance," Attorney General Schwalb stated in a release obtained by OAG. The probe also found that the company was not upfront about customer service availability, falsely boasting of 24/7 support.
The settlement is not just about financial amends; it requires systemic changes within Getaround. The firm must now inform the OAG 90 days in advance should it decide to resume operations in DC, and any future business practices must be transparent, particularly regarding insurance offerings and customer service claims. Acting on behalf of consumers, Assistant Attorneys General Marcia Hollingsworth and Matthew James, alongside Investigator Mark Thunstedt and others in the Office of Consumer Protection led the charge against the deceptive practices.
Consumer advocacy is a cornerstone of the OAG's mission, which has reportedly secured nearly $80 million in enforcement actions and settlements on behalf of DC consumers since January 2023. If District residents wish to report unfair business practices, they can approach the OAG’s Office of Consumer Protection via an online form, hotline, or email. Such vigilance is a testament to the office's devotion to protecting consumers from exploitation, a cause that’s recently highlighted by the Getaround case.
