Documents recently filed by the U.S. Federal Trade Commission revealed that the company will pay $20 million to settle claims that it exaggerated potential earnings in order to recruit more drivers.
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.
In its lawsuit, the FTC also alleged that Uber misrepresented its vehicle financing program.
It explained in its press release: