WASHINGTON, July 23 (Reuters) - Getaround Inc will pay
$950,000 to Washington, D.C. and revise its business practices
after allegations that it misrepresented the benefits and nature
of its car sharing services and failed to pay city sales taxes,
officials said on Friday.
The Softbank-backed San Francisco-based online
company had operated without a license in the U.S capital,
District of Columbia Attorney General Karl Racine said in a
Getaround will pay restitution to car owners who experienced
theft or damage to vehicles listed on its site, Racine said.
Customers can use Getaround to rent vehicles by the hour or
day from individual owners who make vehicles available through
The settlement resolves "what amounts to Getaround paying a
tax bill it never disputed," Getaround said in a statement.
The company added that "as soon as Getaround was notified of
security issues affecting certain cars in the District, the
company took immediate corrective action."
Car sharing services in Washington are subject to a 10.25%
"Gig economy companies must abide by the same rules as their
brick-and-mortar counterparts," Racine said. "They must provide
clear and accurate information to consumers, especially about
the safety of their services, and they must pay their fair share
of taxes like everyone else does."
Racine's office began investigating Getaround in 2020 after
it received reports of increased thefts of cars listed on
The settlement resolves allegations Getaround misled
consumers "by using phony owner profiles for fleet cars actually
owned by Getaround, Racine said.
In October, Getaround raised $140 million in additional
venture capital funding. The company has raised nearly $600
million since it was founded in 2009 and in previous rounds was
valued at more than $1.5 billion.
Getaround operates in over 100 U.S. cities and more than 850
(Reporting by David Shepardson, Editing by Nick Zieminski and