Uber has agreed to fork out $20 million to settle claims that it misled drivers over earnings expectations and vehicle financing.
The US Federal Trade Commission brought these charges against the ride-sharing app company on behalf of Uber drivers. The FTC will now distribute the $20 million to drivers who were adversely affected by Uber’s allegedly false claims.
In a statement on its website, the FTC said:
The FTC alleges that Uber claimed on its website that uberX drivers’ annual median income was more than $90,000 in New York and over $74,000 in San Francisco. The FTC alleges, however, that drivers’ annual median income was actually $61,000 in New York and $53,000 in San Francisco. In all, less than 10 percent of all drivers in those cities earned the yearly income Uber touted. The FTC also alleges that Uber made high hourly earnings claims in job listings, including on Craigslist, but that the typical Uber driver failed to earn those advertised hourly amounts in various cities.
Furthermore Uber will is now prohibited from releasing false or unsubstantiated claims about driver income. Uber released a statement saying that it welcomed the agreement, while not admitting to any of the allegations.
“We’re pleased to have reached an agreement with the FTC,” an Uber spokesman said.
“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.”