WASHINGTON (dpa-AFX) - Ride hailing company Uber Technologies Inc. agreed to pay $20 million to resolve Federal Trade Commission accusations that it misled drivers with exaggerated earnings claims and vehicle financing.
The agency said it will use $20 million to provide refunds to affected drivers across the country.
According to the FTC, Uber exaggerated the income drivers could earn in certain cities in order to lure drivers. The company also swindled drivers about the terms of its vehicle financing options.
Uber claimed on its website that an average annual income for a driver in New York was over $90,000 and was more than $74,000 in San Francisco. However, the FTC alleges that drivers' annual median income was actually $61,000 in New York and $53,000 in San Francisco. Only less than 10 percent of all drivers in those cities earned the yearly income Uber touted.
'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,' said Jessica Rich, Director of the FTC's Bureau of Consumer Protection. 'This settlement will put millions of dollars back in Uber drivers' pockets.'
FTC has now order Uber to not to misrepresent drivers' earnings and auto finance and lease terms. The order also bars Uber from making false, misleading, or unsubstantiated representations about drivers' income.
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