Lyft to pay $2.1 million fine to settle U.S. charges it inflated drivers' earnings prospects
Source: CNBC
Published Fri, Oct 25 2024 5:44 PM EDT
Lyft agreed to pay a $2.1 million civil fine to settle U.S. Federal Trade Commission charges it misled prospective drivers about how much money they might earn working for the ride-hailing company. A proposed settlement was filed on Friday in San Francisco federal court, and requires a judge’s approval.
The case stemmed from advertisements that Lyft placed in 2021 and 2022 to address a driver shortage it referred to internally as a “supply crunch,” as growing access to Covid-19 vaccines boosted demand for its services. According to the FTC, Lyft deceived drivers about how much they could make per hour by featuring hourly earnings based on the top 20% of drivers, which meant most drivers were unlikely to earn the advertised pay.
Lyft’s ads also featured “earnings guarantees” that misled drivers into believing they would receive bonuses, leading to tens of thousands of driver complaints, the FTC said.
“It is illegal to lure workers with misleading claims about how much they will earn on the job,” FTC Chair Lina Khan said in a statement.
Read more: https://www.cnbc.com/2024/10/25/lyft-to-pay-2point1-million-fine-to-settle-us-charges-it-inflated-drivers-earnings-prospects.html
Link to FTC PRESS RELEASE - FTC Takes Action to Stop Lyft from Deceiving Drivers with Misleading Earnings Claims