1 DENNIS J. HERRERA, StateBar#l39669 City Attorney , 2 YVONNE R. MERE, State Bar# 173594 Chief of Complex and Affirmative Litigation 3 NATALIE M. ORR, State Bar #290590 JAIME M. HULING DELAYE, State Bar #270784 4 Deputy City Attorneys Fox Plaza 5 1390 Market Street, 6th Floor San Francisco, California 94102-5408 6 Telephone: (415) 554-3849 Facsimile: (415) 437-4644 7 E-Mail: [email protected]
8 Attorneys for Plaintiff PEOPLE OF THE STATE OF CALIFORNIA, 9 acting by and through DENNIS J. HERRERA AS CITY ATTORNEY OF SAN FRANCISCO 10
11 SUPERIOR COURT OF THE STATE OF CALIFORNIA
12 COUNTY OF SAN FRANCISCO
13 UNLIMITED JURISDICTION 14 PEOPLE OF THE STATE OF CALIFORNIA, case ~GC-18-5638 0 3 acting by and through DENNIS J. HERRERA 15 AS CITY ATTORNEY OF SAN FRANCISCO, COMPLAINT FOR INJUNCTIVE RELIEF 16 AND CIVIL PENALTIES FOR VIOLATIONS Plaintiff, OF BUSINESS AND PROFESSIONS CODE 17 SECTION 17200 vs. 18 TURO INC., and DOES 1-100, inclusive, 19 Defendants. 20
21
22 The PEOPLE OF THE STATE OF CALIFORNIA, by and through San Francisco City
23 Attorney DENNIS J. HERRERA ("the People"), file this Complaint against Defendants TURO INC.
24 and DOES ONE through ONE HUNDRED (collectively, "Turo"). The People allege as follows:
25 INTRODUCTION
26 1. This action arises out of Turo' s unlawful and unfair operation of a rental car business at
27 San Francisco International Airport ("SFO" or "the Airport") without a valid permit, in direct violation
28 of SFO's Rules and Regulations, the California Vehicle Code, and the California Penal Code. Until 1 COMPLAINT N :\CXLIT\LI2018\180640\01248287 .DOCX 1 August 10, 2017, Turo (f.k.a. "RelayRides, Inc.") held a valid SFO rental car permit and paid the
2 associated fees. Effective August 10, 2017, Turo voluntarily relinquished its existing permit and
3 represented to SFO that it would cease operations at the Airport. Instead, Turo has continued to
4 actively advertise and promote SFO car rentals on its website and has taken no apparent steps to
5 discontinue SFO transactions.
6 2. All other similarly situated rental car businesses comply with SFO's permit and fee
7 requirements. SFO strictly enforces these requirements in order to ensure a fair and even playing field
8 among competing companies, to manage the heavy volume of travelers and businesses at SFO, and to
9 fund the maintenance of crucial SFO facilities.
10 3. Turo's deliberate flouting of SFO's permit and fee requirements, and its continued 11 operation at the Airport in defiance of SFO's repeated directives, constitute unlawful and unfair
12 business practices in violation of the Unfair Competition Law, as codified in California Business and
13 Professions Code section 17200 et seq. (the "UCL"). Turo's practices contribute to congestion at SFO
14 terminals, deprive SFO of funds needed for its operation and maintenance, and confer on Turo an
15 unfair advantage over similarly situated businesses that operate lawfully and fairly.
16 PARTIES
17 4. Plaintiff PEOPLE OF THE STATE OF CALIFORNIA, by and through San Francisco 18 City Attorney Dennis J. Herrera, brings this action pursuant to California Business and Professions
19 Code section 17200 et seq.
20 5. Defendant TURO INC. is a corporation organized under the laws of Delaware with its
21 principal place of business located at 667 Mission Street, 4th Floor, San Francisco, California. Since
22 at least 2013, Turo has owned and operated a web-based rental car company that does business at
23 SFO.
24 6. The People are not aware of the true names and capacities of Defendants sued herein as
25 DOES 1 through 100, inclusive, and therefore sue these Defendants by such fictitious names. Each
26 fictitiously named Defendant is responsible in some manner for the violations of law alleged. The
27 People will seek leave of court to amend this Complaint to allege their true names and capacities when
28 that information is ascertained. 2 COMPLAINT N :\CXLIT\LI2018\180640\01248287 .DOCX 1 7. At all relevant times, each Defendant was an agent, servant, employee, partner,
2 franchisee or joint venturer o_f each other Defendant and at all times was acting within the course and
3 scope of said agency, service, employment, partnership, franchise or joint venture. Actions taken, or
4 omissions made, by Turo' s employees or agents in the course of their employment or agency for Turo 5 are considered to be actions or omissions of Turo for the purposes of this Complaint.
6 JURISDICTION AND VENUE
7 8. The San Francisco Superior Court has jurisdiction over this action. Turo conducts
8 unlawful and unfair business practices in the City and County of San Francisco ("San Francisco" or
9 "the City"), and the City Attorney has express authority under California Business and Professions
1O Code section 17204 to prosecute this case on behalf of the People of the State of California.
11 9. Venue is proper before this Court because Turo does business in San Francisco.
12 Specifically, Turo is headquartered in San Francisco, makes policy decisions out of its San Francisco
13 office, and advertises to San Francisco residents and tourists on its website. Furthermore, Turo
14 engages in rental car transactions that take place in San Francisco and/or involve San Francisco
15 residents.
16 GENERAL ALLEGATIONS
17 10. SFO is a world renowned international airport owned by the City and County of
18 San Francisco. The day-to-day operations of the Airport are governed by the Airport Commission, a
19 department of the City and County of San Francisco, pursuant to authority delegated by the
20 San Francisco Charter. The Airport Commission duly promulgates SFO's Rules and Regulations,
21 which "govern the general conduct of the public, tenants, employees, and commercial users of
22 San Francisco International Airport." (Foreword to SFO Rules and Regulations, available at
23 http://www.flysfo.com/ about-sfo/the-organization/rules-and-regulations.) Any person or entity that
24 violates the Rules and Regulations may be denied use of the Airport and subjected to administrative
25 fines, in addition to "other civil, legal or administrative penalties available under federal, state, local or
26 administrative law ...." (SFO Rules and Regulations, Rule 2.2.)
27 11. SFO is one of the busiest airports in the world, with approximately 53 million travelers
28 passing through SFO per year. Given the number of individuals who use SFO's roadways and 3 COMPLAINT N :\CXLI1\LI2018\180640\01248287 .DOCX 1 facilities, SFO must strictly regulate business operations on its property to ensure public safety and
2 convenience, as well as to enhance efficiency and productivity at the Airport.
3 12. Congestion is a particularly serious problem at SFO, given that tens of thousands of 4 vehicles traverse SFO's 1.5 miles of roadways on a daily basis. For this reason, SFO imposes
5 restrictions on individuals and entities that bring vehicles onto SFO property for commercial purposes.
6 Among other requirements, such individuals and entities must obtain permits, pay fees, and comply
7 with designated traffic routes.
8 13. Another manner in which SFO has attempted to address Airport congestion is by 9 investing in the AirTrain, a light rail transit system that connects SFO's terminals, parking garages,
10 Rental Car Center, and BART station. In 2017, the AirTrain transported over 8 million people. While
11 use of the AirTrain by the general public is optional, SFO requires all rental car companies to transport
12 customers between the Rental Car Center and the terminals via the AirTrain - a restriction that SFO
13 enforces through the terms of its permits. By requiring rental car customers to use the AirTrain, SFO
14 has significantly cut down on congestion at the terminals.
15 14. In addition to imposing rules to ensure fair and orderly business operations, the Airport 16 Commission sets fees to fund SFO's operations - including the maintenance of critical Airport
17 facilities like roadways. These fees are central to SFO's financial viability. They are also mandated
18 by federal law, which requires that SFO adopt "a schedule of charges for use of [its] facilities and
19 services" that renders the Airport "as self-sustaining as possible" as a condition for federal grants. (49
20 U.S.C. § 47107(a)(13)(A). See also 49 U.S.C. § 47101(a)(13) [articulating federal policy that airports
21 be as financially self-sustaining as possible].)
22 15. Rental car fees are a major source of income for SFO, and constituted approximately
23 11.5 % of SFO' s operating budget in fiscal year 2016-2017. There are two types of rental car
24 companies that operate at SFO, each of which is subject to a consistent set of permit and fee
25 requirements. "On-airport" rental car companies lease physical space at SFO's Rental Car Center fo:r;
26 the convenience of their customers through a competitive bidding process. Other companies, called
27 "off-airport" rental car companies, maintain headquarters outside SFO property but target SFO
28 travelers and use Airport roadways to collect and drop off their customers. Just like "on-airport" rental 4 COMPLAINT N :\CXLl1\LI2018\180640\01248287 .DOCX 1 car companies, "off-airport" rental car companies must pick up their customers at the Rental Car
2 Center instead of the terminal curbside.
3 16. SFO imposes fees on rental car companies through the terms of its permits. Both "on-
4 airport" and "off-airport" rental car companies are required to pay an "AirTrain fee" of $18 per rental
5 contract, which is passed through to customers, as well as 10% of gross receipts above a certain
6 threshold for SFO rental car transactions. "On-airport" rental car companies additionally pay rent to
7 SFO to occupy space at the Rental Car Center.
8 17. SFO imposes the same basic permit terms and fees on all "off-airport" rental car
9 companies that operate at SFO. This consistent regime preserves fair competition and ensures that
IO individuals and entities that derive commercial benefit from SFO's facilities pay their fair _share of
11 maintaining those facilities. All seven of the other "off-airport" rental car companies that operate at
12 SFO have valid permits and pay the necessary fees. Collectively, those seven companies paid a total
13 of approximately $5.1 million in fees to SFO last year.
14 18. Turo is a web-based rental car company that matches individual car owners with
15 prospective renters. Turo posts car listings on its website and mobile application, provides a tailored
16 search function for prospective renters, processes reservations and payments, and retains a percentage
17 of the proceeds from each transaction (usually 25%, depending on the insurance coverage selected).
18 Founded in 2009, Turo now has over 200,000 cars listed around the world and recently raised
19 $92 million in Series D funding. Turo does not limit the revenue that car owners can earn through its
20 program, and some individuals and entities rent entire fleets of vehicles through Turo.
21 19. Turo's website, available at https://turo.com, portrays Turo as a competitor of
22 "traditional" rental car companies and repeatedly uses phrases like "rent the perfect car" and "not your
23 typical rental car." In 2017, Turo ran a national television commercial featuring the tagline, "This
24 isn't your typical car rental. This is Turo."
25 20. In competing with "traditional" rental car companies, Turo claims two major
26 distinguishing advantages: lower cost and the convenience of vehicle delivery. Turo's homepage
27 advertises: "Pick up your rental or get it delivered, wherever you need it, up to 35% less than
28 traditional agencies." The claim that Turo offers 35% lower prices than traditional rental car 5 COMPLAINT N :\CXLl1\LI2018\180640\01248287 .DOCX 1 companies appears in at least five different places on the Turo website. Turo also emphasizes that
2 Turo renters can "[b]ook a car ... whenever and wherever [they] want it." The "Owner tools" page
3 notes, "One thing that really distinguishes Turo from traditional rental car agencies is the unparalleled
4 convenience of delivery." In multiple places on its website, Turo encourages prospective renters to
5 "[b]ypass the rental counter" and "NEVER WAIT AT THE RENTAL COUNTER AGAIN."
6 21. While Turo does not own the vehicles that it offers for rent to the public, Turo I 7 nonetheless purports to offer a full-service rental car experience comparable to that offered by
8 "traditional" rental car companies. Turo tells prospective renters on its website, "[W]e'll be here for
9 you every step of the way during your rental," and promises insurance coverage, "24/7 roadside
10 assistance" and "24-hour customer support."
11 22. Turo also touts its thorough safety and screening procedures, claiming on its website
12 that "[y]our safety is a top priority." Turo's "Trust and safety" page tells prospective renters,
13 "YOU'RE PROTECTED. Each car on Turo must meet our rigorous eligibility standards for safety,
14 condition, and operations." For car owners, the "Trust and safety" page has a similar message:
15 "YOU'RE SAFE. We screen each traveler, so you can be confident when you hand over your keys."
16 Another page on the Turo website claims, "We screen all renters against our eligibility criteria and run
17 thorough anti-fraud and identity theft checks to protect our entire marketplace."
18 23. In addition to screening prospective renters, Turo offers car owners a variety of other
19 supportive services, including free professional photography for vehicles, a pricing algorithm designed
20 to maximize profits, and the optional use of valet lots near certain airports to facilitate vehicle ·
21 handoffs. In the event that a renter fails to return a Turo rental car on time, Turo has the option under
22 its "Terms of Service" to repossess the vehicle.
23 24. Consistent with the comprehensive services it offers, Turo enforces a number of
24 standardized umbrella policies that cover all Turo rental transactions. Turo has detailed "Terms of
25 Service," a cancellation policy, an extension and late return policy, a minimum rental duration, a late
26 fee schedule, a smoking policy, a pet policy, a fuel policy, a toll policy, a security deposit policy, a
27 street parking policy, a nondiscrimination policy, and community guidelines. Turo also has a policy
28 governing the removal of copyrighted material from car listings, and reserves the right to modify 6 COMPLAINT N:\CXLI1\LI2018\180640\01248287 .DOCX 1 listings at its discretion. Car owners must comply with Turo's many policies or risk termination from
2 Turo. Indeed, Turo reserves the right to remove car owners or listings for any reason or no reason. In
3 sum, the Turo rental car experience is standardized and controlled by Turo down to the small details.
4 25. Airport rentals constitute a large part of Turo' s business model. Turo' s website
5 emphasizes the convenience of vehicle delivery and repeatedly states that Turo offers airport pickups
6 at "300+ airports." Airport rentals are particularly important to Turo's business in the Bay Area.
7 Turo' s online "market guide" for the "SF Bay Area" notes that, "Since more than half of all renters in
8 the [SF Bay Area] market are out-of-town travelers, San Francisco International Airport (SFO) and the
9 surrounding cities, such as Millbrae and San Bruno, receive the most amount [sic] of bookings."
10 26. Indeed, Turo's website affirmatively advertises and promotes rental car transactions at
11 SFO, including transactions that take place curbside at the terminal. For example, Turo's "Airport car
12 rental" page lists SFO as one of Turo's ''TOP AIRPORTS."
13
14
15
16
17
18 OUR TOP AIRPORTS 19 20 II =~-- I 21 22 l..___;:=:-_ .Mport__ l I =:--- 11 ==-- I 23 .._I;o=_:-Mport __...____.· II ~=-- 11 :-:-w- I 24 25 II ~-Allport II ~-Allport I 26 Similarly, Turo's "San Francisco" page lists "SFO Airport" as one of the suggested "NEARBY CAR
27 RENTAL LOCATIONS." Lower down on the page, it says: "AIRPORT PICKUP AVAILABLE"
28 followed by the names of the three major Bay Area airports, starting with SFO. 7 COMPLAINT N:\CXLI1\LI2018\180640\01248287 .DOCX 1 2
3
4
5
6
7
8
9
10 When a prospective renter clicks the "Search SFO" button, he or she is directed to a long list of car
11 listings displayed under the words "Curbside Delivery ... NEVER WAIT AT THE RENT AL
12 COUNTER AGAIN .... 200+ cars available at San Francisco International Airport." Many of those
13 200+ listings expressly offer to drop off or pick up the rental car curbside at SFO terminals.
14 27. In addition to the promotional language on its website, Turo also structures its website
15 functions and default options to facilitate rental transactions at SFO. For instance, Turo aggregates
16 listings that offer SFO pickups and dropoffs under a single easily searchable tab called "SFO -
17 San Francisco International Airport." In addition, when prospective renters in San Francisco click the
18 search box on Turo's homepage to input their desired location, a dropdown menu pre-populated by
19 Turo lists "SFO - San Francisco International Airport" as the first suggested location. 20
21 22 23
24 25 26
27 28 8 COMPLAINT N :\CXLI1\LI2018\l 80640\01248287 .DOCX 1 28. Similarly, as part of the process of creating a car listing, Turo prompts car owners to 2 select whether they are willing to deliver to various airports, including SFO. Turo pre-populates the
3 names of selectable airports and then prompts the car owners to set a surcharge amount for airport
4 delivery, a percentage of which Turo keeps. The "airport delivery" option and "delivery fee" are then
5 displayed in a dropdown menu on the right side of each listing. Most if not all of the car listings
6 aggregated in Turo' s "SFO - San Francisco International Airport" tab contain this template panel and
7 dropdown menu indicating that the rental car in question is available for delivery at SFO, either for
8 free or for an additional fee.
Michael's 9 Tripllllrt
MERCEDES-BENZ SLK-CLASS 2009 oi/24/2018 v !t.30AM 10 ***** · 16tripa Trip end l!t 22 MPG l!J Gas 11 01/27/2018 v 11-00AM
~ 2doora .I, 2sealG 12 Pickup & return location I SFO - San Fronciaca lntematianal Air_ " DESCRIPTION 13 I CARLOCATION This is the best hard top convartible In the world ! Travel tha Bay Area in style, make great plcturao, lmpreGG your loved one! Enjoy the world! I am Gharing the (;;;\ I San Francisca, CA 94103 14 dreams here. ~ Frae
'Ae A::ertd YO"J the GicM.1. ltdl!fc:' orY.:e ym::r ltij) 1:J 15 FEATURES l±J Automatic transmission c;=:. Convertible -AIRPORT 16
17 DELIVERY DETAILS Available Pick-up & Drop-off arrangements: - self-service at secret-location 18 - SFO airport curbside Q ISJC - Mineta Sen Jaw '..::::J lntemotional Airport - 123 O'Farell St or 899 Mia&ion St $70 19 Bridge Toll ls$ 7.75 (read through the the license plate) juot cross the bridge without worry_ Q I OAK - Oakland lntematiana.I '..:::;,I Airport 20 At the end of the trip and let me know how many times you cross, and I'll
21 29. Turo further explains the logistics of airport delivery on a page called, "How does
22 curbside delivery work?" On that page, Turo notes that car owners and renters often meet at "the
23 departures curb" or an airport "cellphone lot," either "at a set time" or "based on a call/text from the
24 traveler." Another option, Turo suggests, is for the car owner to leave the rental car in an airport
25 parking lot "with a key in a lockbox."
26 30. Between 2013 and 2017, Turo (f.k.a. "RelayRides, Inc.") held a valid permit to operate
27 at SFO as an "off-airport" rental car company. As of August 10, 2017, Turo relinquished its permit
28 and advised SFO by letter that it would cease operations at the Airport. Instead, Turo continued to 9 COMPLAINT N :\CXLIT\LI2018\180640\01248287 .DOCX 1 encourage and facilitate SFO car rentals after its permit expired, and has taken no apparent steps to
2 discontinue SFO transactions. Upon information and belief, none of the advertising language or
3 website functions described in paragraphs 25 through 29, above, were removed from the Turo website
4 after Turo' s permit expired on August 10, 2017.
5 31. SFO has repeatedly informed Toro that it must execute a valid permit, pay the 6 applicable fees, and use the AirTrain for its arriving customers - just like every other "off-airport"
7 rental car company. After an exchange of letters and an in-person meeting, SFO gave Turo thirty days
8 to either execute a valid permit or terminate its SFO operations and remove all references to SFO from
9 its website and promotional materials. Turo refused.
10 CAUSE OF ACTION FOR UNLAWFUL AND UNFAIR BUSINESS PRACTICES BROUGHT BY PLAINTIFF 11 PEOPLE OF THE STATE OF CALIFORNIA AGAINST ALL DEFENDANTS 12 (California Business and Professions Code sections 17200-17210)
13 32. The People hereby incorporate by reference paragraphs 1 through 31 as though fully set 14 forth herein.
15 33. The People bring this cause of action in the name of the People of the State of 16 California, pursuant to Business and Professions Code section 17200 et seq., which prohibits any
17 "unlawful, unfair or fraudulent business act or practice."
18 34. Toro has engaged in, and continues to engage in, unlawful business acts and practices 19 including but not limited to the following:
20 a. Rule 4.4(A) of SFO's Rules and Regulations provides that "No person shall 21 operate any vehicle on the Airport other than on the roads or places authorized by the Director for use
22 by that particular type of vehicle." Toro has violated and continues to violate this provision by
23 engaging in curbside transactions at the terminals despite knowing that SFO forbids such conduct.
24 The prohibition on curbside pickups is included in all SFO rental car permits, including the permit
25 under which Turo operated until August 10, 2017.
26 b. Rule 4.7 of SFO's Rules and Regulations applies to any "individual or business 27 entity ... providing transportation services to, on, or from Airport property including, but not limited
28 to, those operators who use Airport roadways as part of a business conducted for monetary 10 COMPLAINT N :\CXLI1\LI2018\180640\01248287 .DOCX 1 consideration ...." Rule 4.7(A) requires all such individuals and entities to comply with the terms of
2 the permit associated with their "transportation mode," including by "following ... directives
3 regarding loading and unloading of passengers," "operating only in designated areas," and paying all
4 fees "[c]onsistent with the terms of the applicable permit." Turo has violated and continues to violate
5 this provision by using SFO's roadways without obtaining the applicable "off-airport" rental car
6 permit or paying the associated fees, and by deliberately flouting SFO's prohibition on curbside
7 pickups. In addition, Rule 4.7(E) expressly provides that "the Airport Director at all times retains the
8 sole and absolute discretion to suspend operating privileges at SFO." Turo has violated and continues
9 to violate this provision by refusing to recognize the Airport Director's suspension of Turo' s operating
10 privileges despite multiple written demands from SFO.
11 c. California Vehicle Code section 21113(a) provides that no person shall "drive a 12 vehicle ... upon the driveways, paths, parking facilities, or the grounds of any ... municipal airport"
13 without the "permission of ... the governing board or officer of the ... municipal airport." Turo has
14 violated this provision by driving a vehicle upon SFO's driveways and grounds even after its
15 permission to do so was expressly revoked by SFO.
16 d. Rule 3.3(D) of SFO's Rules and Regulations states: "No person shall enter or 17 remain on Airport property and buy, sell, peddle or offer for sale or purchase any goods, merchandise,
18 property or services of any kind whatsoever, to, on, or from Airport property, without the express
19 written consent of the Director or the Director's duly authorized representative." It continues: "No
20 person shall operate or promote a business on Airport property ... without first obtaining a valid
21 permit, lease, or other written permission granted by the Director." Similarly, Rule 9.2 of SFO's Rules
22 and Regulations states: "No person shall operate or promote a business on Airport property without
23 first obtaining a valid Airport Operating Agreement, permit, lease, or other written permission granted
24 by the Airport Director." Turo has violated and continues to violate both Rule 3.3(D) and Rule 9.2 by
25 operating a business on Airport property, and by selling or offering for sale property or services on
26 Airport property, without the Airport's consent.
27 e. California Penal Code section 602 makes it a misdemeanor for any person to 28 "Enter[] and occupy[] real property or structures of any kind without the consent of the owner, the 11 COMPLAINT N :\CXLI'I\I..12018\180640\01248287 .DOCX 1 owner's agent, or the person in lawful possession." Similarly, California Penal Code section 602.4
2 provides that: "A person who enters or remains on airport property ... and sells, peddles, or offers for
3 sale any goods, merchandise, property, or services of any kind whatsoever, including transportation
4 services to, on, or from the airport property, to members of the public without the express written
5 consent of the governing board of the airport property ... is guilty of a misdemeanor." Turo and its
6 agents have repeatedly violated, and continue to violate, California Penal Code sections 602 and 602.4
7 by entering and occupying Airport property to sell or offer goods or services after their permission to
8 do so was expressly revoked by SFO.
9 35. In completing rental transactions on SFO property, the car owners act as Turo's agents 10 in carrying out Turo's intended business model in accordance with Turo's terms, restrictions, and
11 policies, and consistent with Turo's express encouragement and direction on its website.
12 36. Moreover, Turo car owners who have engaged in rental transactions at SFO after
13 Turo's permit expired have individually violated the same provisions of SFO's Rules and Regulations,
14 the California Vehicle Code, and the California Penal Code outlined in paragraph 34, above. Turo has
15 conspired with, furnished the means, and aided and abetted the individual car owners in committing
16 such violations. Specifically, Turo has knowingly encouraged SFO transactions on its website and
17 provided substantial assistance in the form of booking and payment services, along with other conduct
18 described in paragraphs 25 through 29, above, despite knowing that it lacks a valid permit to operate at
19 SFO. Turo has also agreed and cooperated in a common scheme with the individual car owners in
20 effectuating SFO rental transactions. Turo's agreement, cooperation, and substantial assistance made
21 the above-described individual violations possible.
22 37. In addition to being unlawful, Turo's actions as set forth in this Complaint constitute
23 unfair business acts and practices under the UCL. As a result of Turo' s willful noncompliance with
24 SFO's permit and fee requirements, Turo has been able to advertise and charge lower prices than
25 competitor rental car companies who play by the rules - a textbook example of unfair competition.
26 38. Turo's conduct harms not only its competitors, but also the general public. First, Turo 27 has commercially exploited SFO' s roadways and facilities while depriving SFO of fees needed to
28 maintain those facilities for public use. Second, Turo' s continued participation in unlawful curbside 12 COMPLAINT N :\CXLIT\LI2018\180640\01248287 .DOCX 1 pickups has contributed to congestion at the terminals and flouted rules designed for the safety and
2 convenience of travelers. Finally, by actively promoting SFO rental car transactions after the
3 expiration of its permit, Turo has misled both car owners and prospective renters about the lawfulness
4 of such transactions and placed Turo car owners at risk of civil and criminal liability.
5 39. Turo's business acts and practices as set forth above are unfair in that they offend
6 established public policy; they cause harm that outweighs any benefit; and they are immoral,
7 unethical, oppressive, unscrupulous, and substantially injurious to both competitors and the public. 8 PRAYER FOR RELIEF
9 WHEREFORE, the People respectfully request that the Court award relief as follows:
10 1. Declare that Turo has engaged in unlawful and unfair business acts and practices in
11 violation of California Business and Professions Code sections 17200-1721 O;
12 2. Enjoin and restrain Turo from engaging in rental car transactions at SFO; making
13 reference to SFO on its website, mobile application, or other promotional materials; and encouraging
14 or facilitating SFO transactions in any other manner, until Turo fully complies with SFO's permit and
15 fee requirements;
16 3. Order Turo to pay civil penalties of up to $2,500, pursuant to Business and Professions
17 Code section 17206, for each violation of Business and Professions Code sections 17200-1721 O;
18 4. Award the People costs of suit pursuant to Code of Civil Procedure section 1032; and
19 5. Grant such other and further relief as the Court should find just and proper.
20 Dated: January 24, 2018 DENNIS J. HERRERA 21 City Attorney YVONNE R. MERE 22 Chief of Complex and Affirmative Litigation . NATALIE M. ORR 23 JAIME M. HULING DELAYE Deputy City Attorneys 24
25 By~ Attorneys for Plaintiff 26 THE PEOPLE OF THE STATE OF CALIFORNIA acting by and through DENNIS J. HERRERA AS CITY 27 ATTORNEY OF SAN FRANCISCO 28 13 COMPLAINT N:\CXLI1\LI2018\180640\01248287 .DOCX