FTC hits Lyft with $2.1M penalty for luring drivers with false earnings claims

Quick Summary:

Lyft has agreed to a $2.1 million settlement proposed by the FTC over the car-hailing company’s “deceptive earnings claims about how much money drivers could expect to make.” As documented in the FTC’s complaint document, Lyft systematically inflated the incomes it advertised to drivers it was attempting to recruit in 2021 and 2022.

But these guarantees did not clearly disclose that drivers were only paid the difference between what they actually earned, and Lyft’s advertised guaranteed amount,” the FTC said in its press release.

But the company has already had to shape up its payment promises: It can’t include tips in its estimates of hourly rates, for instance, and it must more clearly explain promotions like “guaranteed” income.

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Article Details

Author / Journalist: Devin Coldewey

Category: Technology

Markets: United States

Topics: Lyft Transportation FTC

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-25 @ 21:15:02 (2 days ago)

News Timezone: GMT -5:00

News Source URL: techcrunch.com

Language: English

Article Length: 552 words

Reading Time: 4 minutes read

Sentences: 17 lines

Sentence Length: 33 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © TechCrunch

News ID: 23244550

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