Uber To Pay $20 Million To Settle Allegations It Deceived Drivers Featured

  20 January 2017

Uber Technologies is paying $20 million to settle allegations that it deceived people into driving for its ride-hailing service with false promises about how much they would earn and how much they would have to pay to finance a car.

The agreement announced with the Federal Trade Commission (FTC) covers statements Uber made from late 2013 until 2015 while recruiting more drivers to expand its service and remain ahead of its competitor, Lyft. The FTC alleged that most Uber drivers were earning far less in 18 major U.S. cities than Uber published online. Regulators also asserted that drivers ended-up paying substantially more to lease cars than Uber had claimed. "Many consumers sign up to drive for Uber, but they shouldn't be taken for a ride about their earnings potential or the cost of financing a car through Uber," said Jessica Rich, director of the FTC's Bureau of Consumer Protection. Read more here.