Lyft fined $2.1 million for deceptive advertisements about how a lot drivers might make

The Federal Commerce Fee (FTC) introduced Friday that rideshare firm Lyft has agreed to pay $2.1 million as a part of a proposed settlement that requires it to alter the way it advertises driver pay.

The corporate routinely marketed that drivers might make “particular hourly quantities” — in a single occasion, claiming earnings of “as much as $33” per hour for driving in Atlanta — that had been based mostly not on a median, however on what the highest fifth of drivers made, based on the Fee. The corporate additionally apparently included suggestions in these figures.

Such strikes “overinflated the precise earnings achieved by most drivers by as a lot as 30%,” writes the FTC, which says the corporate now should base potential pay claims on what drivers sometimes make, as an alternative. And people quantities can not think about suggestions as a part of said hourly pay.

“It’s unlawful to lure staff with deceptive claims about how a lot they may earn on the job,” stated FTC Chair Lina M. Khan. “The FTC will hold utilizing all its instruments to carry companies accountable once they violate the legislation and exploit American staff.”

The FTC included examples of Lyft’s offending advertisements in its criticism, resembling these under.

Lyft additionally apparently promoted earnings ensures, resembling one promising $975 for finishing 45 rides in a weekend. However these additionally misled drivers, who thought they’d be getting the quantity as a bonus on high of what they earned, when the supply was truly a conditional minimal pay assure for doing a set variety of rides, based on the FTC. The corporate is now required to make that truth clear.

Right here is the proposed order:

In a press release on its web site, Lyft highlights modifications it has made not too long ago to inform drivers how a lot they’ll earn and says it’s “dedicated to following the FTC’s greatest practices” when speaking such particulars.