Uber will fork over $20M to settle FTC claims of inflated driver earnings

Enlarge (credit: GHETTO UBER DRIVER)

On Thursday, Uber agreed to pay $20 million to end a lawsuit filed by the Federal Trade Commission, which alleged the startup had exaggerated what drivers could expect to earn in various cities nationwide.

In the civil complaint, which was filed with a federal court in San Francisco just before the settlement was announced, the FTC noted that Uber had advertised on Craigslist in numerous cities that drivers could make $16 to $29 per hour. However, in some cities, including Boston, Minneapolis, and Philadelphia, only less than 10 percent of drivers actually averaged the advertised rate. On Twitter, the FTC said that the money would go to affected drivers.

The FTC also alleged that Uber’s “Vehicle Solutions Program,” which aided financing of vehicles, ended up costing far more than drivers had initially been told that they would.

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Source: Ars Technica – Uber will fork over M to settle FTC claims of inflated driver earnings