Popular transportation network Uber is coughing up 20 million USD to settle a lawsuit with the Federal Trade Commission regarding its embellished money-making claims.
According to the FTC, the majority of Uber drivers were earning less than in 18 major U.S. cities than what Uber was saying online. Uber advertised that drivers could make more than $90,000 a year in New York and more than $74,000 in San Francisco. The complaint alleges that Uber said that its drivers could own a car for as little as $20 a day or $140 per week.
The FTC also attached another charge to the San Francisco company. The employed Uber drivers paid more to lease cars. Uber claimed that users can lease a car with payments as low as $17 per day or $119 for a week. Drivers apparently end up paying $200 instead.
Director of the FTC's Bureau of Consumer Protection, Jessica Rich says, "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." She adds that the settlement will see millions of dollars back in the pockets of Uber's drivers.
The agreement with the FTC which was announced this Thursday apparently covers statements from Uber dating from 2013 until 2015. A large chunk of the settlement proceeds is set to paid out to drivers.
Aside from the $20 million Uber settlement, FTC has also prohibited the company from misrepresenting drivers' earnings and terms of its auto finance and lease programs.
Uber is pleased to reach an agreement with the FTC and says, "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."