State Audit Finds Lack Of Oversight For Rideshare Companies

COURTESY OF MASS.GOV: State Auditor Suzanne Bump

HYANNIS – A recent audit performed by the Office of State Auditor Suzanne Bump indicates that the Transportation Network Company Division of the Department of Public Utilities fell short of regulations to ensure rider safety for services such as Uber and Lyft.

The audit period spanned from October 1, 2017 when regulations per Section 274 of Title 220 of the Code of Massachusetts Regulations became active and ended on August 31, 2019.

“The division was created by the Legislature to regulate this emerging industry and was directed to create regulations and to hold the TNC’s accountable for the safety of the public. Instead, even after it adopted its regulations, the division allowed the TNC’s to operate under much looser standards for a significant period of time and failed to conduct proper oversight,” said Bump.

“Additionally, while the division is now acting in accordance with its regulations, the audit points out several areas of deficiency,” she said.

The audit found several areas of deficiency, such as a failure to perform six of the seven required quarterly audits of the background record check log kept by Uber and Lyft.

The audit also identified shortcomings in documentation for workers, such as failure to report suspended licenses and failure to respond to consumer complaints.

The OSA tests performance standards for state government programs, departments, and agencies to ensure transparency.

The entire audit report can be found by clicking here.

By, Matthew Tomlinson, NewsCenter

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