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Uber Must Face Consumer Lawsuit Over ‘Gratuity’ Surcharge

Uber Technologies Inc., the smartphone-summoned car service, must face a consumer lawsuit challenging its 20 percent gratuity surcharge on rides, handing the embattled company its latest setback as the nascent industry faces legal attack in the U.S. and Europe.

Uber retains “a substantial portion” of the gratuity as additional revenue rather than giving it to drivers, according to a complaint this year by an Illinois resident who accused the ride-share company of misleading customers about the true cost of its service. The lawsuit seeks group status on behalf of Uber users.