Office of the Attorney General for the District of Columbia

04/14/2025 | Press release | Distributed by Public on 04/14/2025 07:03

Attorney General Schwalb Secures Refunds & Penalties from Unlicensed Rideshare Business That Targeted Children and Families

Attorney General Schwalb Secures Refunds & Penalties from Unlicensed Rideshare Business That Targeted Children and Families

April 14, 2025

After Residents Filed Complaints, OAG Investigation Found that RubiRides Marketed Itself as Safe Transportation for Kids While Operating Without a License, Failing to Provide Promised Rides and Required Refunds


Attorney General Brian L. Schwalb today announced that local subscription-based rideshare company RubiRides Technologies, Inc. (RubiRides) and its CEO and Founder Noreen Butler must provide refunds to families for services they never received, pay $50,000 in penalties, and permanently end operations in the District unless they significantly reform their business practices. This settlement resolves an investigation by the Office of the Attorney General (OAG) into RubiRides which found evidence that the company deceptively marketed itself as a safe transportation alternative for children while operating without required licenses, failed to provide promised refunds after the service stopped offering rides, and in some instances charged customers for rides it did not provide.

"This investigation and settlement not only puts an end to a dangerous, unlicensed business, but also puts money back into the pockets of parents that paid for transportation services they never received," said Attorney General Schwalb. "We will continue to use the law to protect public safety, ensure that DC consumers are treated fairly, and make sure that all businesses operating in the District play by the rules."

RubiRides is a rideshare company that provided transportation services for children in Maryland, Virginia, and the District of Columbia. The company, which operated in DC from August 2021 until it suspended operations in January 2024, marketed itself to parents and caregivers as a high-end service for safe child transportation. Consumers paid monthly or yearly subscription fees for access to RubiRides and pre-loaded funds into their account to book rides for children in their care.

By December 2023, RubiRides began to experience significant operational issues and failed to consistently provide promised rides to subscribers. In some cases, scheduled rides for kids were cancelled without explanation, and several families were charged for rides that did not take place. RubiRides also stopped responding to cancellation and refund requests from its customers. When the company suspended operations in January 2024, it continued to charge families subscription fees for now-nonexistent services, and failed to refund customer's account balances, which ranged from $100 to $1,000 per family.

After receiving complaints from multiple RubiRides customers, OAG opened an investigation and found evidence that the company had violated DC consumer protection laws in multiple ways, including by operating without required licenses, misleading consumers about its services, charging subscription fees for an inactive service, and failing to provide promised refunds. Under the terms of a settlement agreement resolving these allegations, RubiRides and Butler must:

  • Fully refund affected consumers. RubiRides was required to provide refunds to all DC consumers who had outstanding account balances. During the course of OAG's investigation, RubiRides provided $3,439 in refunds to eight impacted DC consumers. Additionally, as part of the settlement, the company was required to conduct an in-depth review to ensure no additional DC consumers were owed refunds or had outstanding account balances.
  • Pay $50,000 in penalties.
  • Permanently end rideshare operations unless they significantly reform their business practices. RubiRides must cease operations in the District-and Butler must not operate any rideshare or driving-related business in DC-unless the business obtains all required licenses, hires staff to provide live customer support during business hours, creates and implements a simple process for consumers to cancel subscriptions and obtain account balances, and puts in place a policy for retaining consumer complaints that will be made accessible to OAG.

A copy of the settlement agreement is available here.

This matter was handled by Assistant Attorney General Brittany Nyovanie, under the supervision of Director of the Office of Consumer Protection Adam Teitelbaum and Deputy Director of the Office of Consumer Protection Kevin Vermillion.

How to Report Unfair Business Practices

OAG protects DC residents from fraud, exploitation, and deceptive business practices by investigating and mediating consumer complaints, educating residents about their rights, and taking legal action against businesses and individuals that harm residents and break the law. Since January 2023, OAG has obtained nearly $80 million through enforcement actions and settlements on behalf of DC consumers.

To report scams, fraud, or unfair business practices, contact OAG's Office of Consumer Protection: