Uber is paying $20 million to settle a government lawsuit over driver pay
Source: Chicago Tribune
Uber Technologies Inc. agreed to pay $20 million to settle a U.S. Federal Trade Commission lawsuit over driver compensation claims and its auto leasing program.
The FTC sued the San Francisco-based ride-hailing startup Thursday, saying Uber made false, misleading or unsubstantiated claims about how much drivers could earn on the service. The agency alleged Uber made similar misrepresentations about its vehicle financing program.
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The FTC complaint laid out several examples the agency said were false or misleading. In 2015, Uber's website said the median annual income for a driver on its UberX service was $90,000 in New York City and $74,000 in San Francisco. The complaint alleged that the actual median income for drivers in New York was $29,000 less than Uber claimed and $21,000 less in San Francisco from May 2013 to May 2014.
The FTC also cited Craigslist ads that Uber used to recruit drivers, some of which said: "Make $20/hour." In Boston, Minneapolis and Philadelphia, fewer than 10 percent of drivers earned the advertised hourly wage, the suit said, citing data Uber provided to the FTC.
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Read more: http://www.chicagotribune.com/bluesky/technology/ct-uber-ftc-driver-settlement-blm-bsi-20170119-story.html
Uber provides a needed service, but they do it in a deceitful, predatory fashion. $20 Million is a drop in the bucket for all the people who financially destroyed themselves chasing the dream based on Uber's lies.
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