Uber-exaggerated claims result in $20 million settlement
When you’re on the hunt for income, the last thing you want is to be misled about the earnings and benefits that a business opportunity offers. Today, the FTC announced that Uber agreed to a $20 million settlement of the FTC’s charges that the company made false or unsupported claims regarding its drivers’ likely income and the benefits of its Vehicle Solutions Program.
The FTC says Uber made several misleading claims about the annual and hourly wages its drivers were likely to earn. For example, Uber’s website claimed that the median yearly income for Uber drivers in New York is $90,000. Similarly, Uber ads in Boston and Philadelphia claimed that the average driver would “make $25/hour,” while San Diego and Phoenix drivers could expect to make $20/hour. According to the FTC, most of Uber’s drivers were not likely to earn the claimed annual and hourly wages.
To attract new drivers, Uber also created the Vehicle Solutions Program, which claimed to “connect drivers with any kind of credit history to the best financing options available.” Uber advertised “payments as low as $17 per day” and “starting at $119/week,” as well as unlimited mileage on leased vehicles.
In reality, drivers who participated in the Vehicle Solutions program paid more than the weekly advertised amounts and were offered higher interest rate loans than the industry average. Also, even though Uber claimed leases had “unlimited mileage,” the leases did have mileage limits.
The settlement requires Uber to pay $20 million and prohibits the company from making false or misleading claims about its drivers’ likely income and the benefits of its Vehicle Solutions Program.
If you or someone you know drives for Uber, watch this space for info on how the FTC plans to make refunds.
And remember, if a business doesn’t deliver on its promises or if you’ve spotted a scam, report it to the FTC.
Comments
Nice to see once again that the FTC is looking out for the consumer.
God Bless you. Now investigate Uber's arbitrary and fake surge pricing. One report of a veteran driver (anyone over 2 months) being asked a question about the app by a new driver. Her app had surge pricing, his did not and they were in the same location. Other reports of drivers finding out (because they knew passengers) that Uber is charging significantly more to the passenger than they are claiming to the driver. The company is shiftier than quicksand. Also, surge? Mostly a ploy to draw (again newer drivers) to areas with low numbers of drivers. How is this ploy not making them essentially employers because they are dictating where we should be driving?
I would like to be notified on further developments I am an uber driver in Tennessee
As a Uber driver I am very interested in filing a claim for a refund
How do I sign up for this law suit
I was told to follow this website for details AFTER the judge approves the settlement. I'm in California.
Interested
Does the FTC have the Uber data on drivers affected by both the false revenue claims and the new car financing claims? I am a victim of both. What is the formula for calculating refunds? What is the timing of the refunds?
I Drive for Uber and Lyft for about one year now and I never earn $35.00/Hour as they adv. in MI.
I've almost taken a job through Uber since this past October but decided against it. It sounded to good to be true and didn't seem to give all information about the way they paid their employees for their work and gas mileage used. Glad I didn't get a job with them, seems I would've been screwed over anyhow. Least they are doing something to fix the problem and hopefully prevent it from happening again.
How will FTC know how to contact us (uber drivers)? As of right now, it looks like we have to keep checking back on this site's blog. Right? Wrong??
The settlement requires Uber to pay $20 million and prohibits the company from making false or misleading claims about its drivers’ likely income and the benefits of its Vehicle Solutions Program.
You can watch for information here, on the FTC consumer blog, for information about how the FTC plans to make refunds.
More info please
Thanks. I bought a car based on these promises, and found that after fuel, tires, brakes, maintenance, I was making about $5-$9/hr, unless there was surge. Then, I had to feel guilty about driving somone 15 miles for $200! Constant lies from this company. They are already violating the terms, telling my friend they can deliver food with Uber Eat and make $25/hr, but he is spending 45 minutes to deliver some food and getting $4, which doesn't even cover the gas. How do we make a claim?
Uber is a scam. Don't let them scan you
Leave a Comment
Comment PolicyRead Our Privacy Act Statement
It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Federal Trade Commission’s (FTC) public records system, and user names also are part of the FTC’s computer user records system. We may routinely use these records as described in the FTC’s Privacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.