Lyft to Pay $1.8 Million to Settle California Privacy Allegations

Lyft is paying $1.8 million in civil penalties to resolve allegations that it violated California privacy and unfair competition laws by failing to let consumers opt out of the sale or the sharing of their personal information.

The settlement also requires Lyft to provide an in-app option to opt-out and to notify California consumers of their right to prevent the sale of their personal information, according to California Attorney General Rob Bonta, who reached the settlement with Lyft.

Lyft began selling or sharing consumer personal information in 2023 to target and display ads within its app. Consumers seeking to opt out had to navigate a series of links from the app’s privacy policy to a “Do Not Sell or Share My Personal Information” webpage. The company also required consumers to re-enter login information and submit more personal information, according to the Bonta’s office, which said those steps created unnecessary barriers that violated the California Consumer Privacy Act and California’s Unfair Competition Law.

Related: Lyft to Pay $272.5 Million to Settle California Driver Misclassification Claims

The investigation stemmed from a March 2025 investigative sweep examining how companies use geolocation data. To get a ride, both riders and drivers need to download Lyft’s app and create an account. The company collects names, email addresses or phone numbers, IP addresses and location information.

The CCPA gives California consumers the right to ask businesses to stop selling or sharing their personal information. Californians can also use the state’s Delete Request and Opt-out Platform, known as DROP, to send a single request to registered data brokers to delete their personal information.

Topics California Sharing Economy Ridesharing