Cruise fined $112,500 by CPUC for pedestrian looping incident but avoids independent investigation

Cruise was fined the maximum allowable $112,500 for destroying evidence of the incident in which his car dragged a pedestrian 20 feet. But the self-driving car maker got off lightly as government regulators rejected calls for an independent investigation into the actual incident.

When a self-driving Cruise robotaxi dragged a pedestrian 20 feet on the evening of October 2, 2023, the company suffered the consequences. The California DMV revoked the company’s permits, Cruise stopped operating self-driving vehicles, and subsequently recalled all of its vehicles nationwide. Cruise also paid the pedestrian victim $8 million in settlement.

And as events unfolded, it emerged that Cruise withheld evidence from state regulators after the incident, something Cruise has since admitted. The California Public Utilities Commission fined Cruise the maximum fine allowed for this. But as the Examiner reports, that “maximum” fine is only $112,500.

Cruise had asked for an even smaller fine of just $75,000. But the CPUC refused to conduct an independent investigation into the actual events as requested by the SFMTA and instead relied on the supposedly independent report that Cruise had commissioned from an outside law firm.

“Approval of the terms of the settlement agreement will end this dispute, allowing Commission staff to devote their resources to regulatory oversight of Cruise rather than engaging in potentially lengthy litigation,” CPUC Administrative Law Judge Robert Mason III wrote in his ruling.

The paltry fine and lack of investigation don’t seem to be even a slap on the wrist for Cruise. The company probably knows this and seems happy with the outcome.

“Over the past few months, we have taken important steps to improve our leadership, processes and culture,” Cruise spokeswoman Hannah Lindow said in a statement to the Examiner. “As we continue to make progress, we are committed to working with the commission to achieve our shared goals and provide greater transparency and public safety for our communities.”

Cruise resumed operations in Houston, Texas last month, and as TechCrunch notes, this settlement puts Cruise “in a position to resume operations in California.”

Related: State commission claims Cruise withheld evidence and misled public in pedestrian-towing incident (SFist)

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