From TechCrunch:
Uber settled a lawsuit filed by the Federal Trade Commission today for
$20 million. The lawsuit alleged that the ride-hailing app recruited
drivers by misleading them about the amount of money they could earn
through the app and the auto financing deals they could get
through Uber’s Vehicle Solutions Program.
The lawsuit
claims that Uber made “false, misleading, or unsubstantiated claims
regarding driver earnings and its Vehicle Solutions Program.” The FTC
says that,
although Uber advertised that drivers could earn between $16 and $29
per hour depending on the city in which they drove, only a fraction of
drivers actually earned the advertised amount.
In Boston, Minneapolis and Philadelphia, fewer than 10 percent of
drivers earned the advertised amount, according to the FTC. In several
other cities, the rate was a bit higher — fewer than 30 percent of
drivers earned the advertised rate in Dallas, Phoenix and Seattle.
Uber also promoted the Vehicle Solutions Program as a low-cost way
for drivers to buy a vehicle, saying drivers would get the “best
financing options available” and have “unlimited miles.” The FTC suit
claims this wasn’t the case at all — in fact, Uber had “no basis” for
these statements. The rates offered by Uber were often higher than those
commercially available, the FTC says.
By settling the lawsuit, Uber did not admit to the allegations. An
Uber spokesperson told TechCrunch, “We’re pleased to have reached an
agreement with the FTC. We’ve made many improvements to the driver
experience over the last year and will continue to focus on ensuring
that Uber is the best option for anyone looking to earn money on their
own schedule.”...MORE
Here's the Federal Trade Commission press release:
Uber Agrees to Pay $20 Million to Settle FTC Charges That it Recruited Prospective Drivers with Exaggerated Earnings Claims
