The Federal Commerce Fee (FTC) introduced Friday that ride-hailing firm Lyft has agreed to pay $2.1 million as a part of a proposed settlement that requires it to vary the way it advertises the way it pays drivers.
The corporate has routinely introduced that drivers may earn “particular hourly quantities” — in a single case, claiming earnings of “as much as $33” an hour for driving in Atlanta — which are based mostly not on a median, however on what he received the highest fifth of drivers. , in line with the Fee. Apparently the corporate additionally included suggestions in these figures.
Such strikes “inflated the precise earnings earned by most drivers by as a lot as 30 p.c,” writes the FTC, which says the corporate should now base potential fee claims on what drivers sometimes do. And these quantities can now not depend suggestions as a part of the reported hourly wage.
“It’s unlawful to lure staff with deceptive claims about how a lot they are going to earn on the job,” mentioned FTC Chairwoman Lina M. Khan. “The FTC will proceed to make use of all its instruments to carry companies accountable after they break the legislation and exploit American staff.”
The FTC included examples of Lyft's offensive advertisements in its criticism, comparable to those beneath.
Screenshots: United States Proposed Order Towards Lyft, Inc
Screenshots: United States v. Lyft, Inc. Proposed Order
Lyft additionally reportedly promoted successful ensures, comparable to one promising $975 for finishing 45 rides in a weekend. However these drivers have been additionally misled, considering they’d obtain the bonus quantity on high of what they earned, when the provide was truly a assured minimal fee conditional on making a set variety of journeys, in line with the FTC. The corporate is now obliged to make clear this reality.
Right here is the proposed order:
In an announcement on its web site, Lyft outlines adjustments it has lately made to telling drivers how a lot they will earn and says it’s “dedicated to following the FTC's greatest practices” when speaking such particulars.