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The Federal Commerce Fee (FTC) has handed Lyft a $2.1 million effective for deceptive drivers about their potential earnings. The FTC stated that the ride-hailing app misled drivers by basing the earnings per hour it marketed on the highest 5% of its drivers, not the typical employee. The federal government company stated that Lyft exaggerated potential earnings by as a lot as 30%. “It’s unlawful to lure employees with deceptive claims about how a lot they’ll 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 regulation and exploit American employees.”The FTC stated that Lyft made quite a few false and deceptive claims in its promoting and advertising and marketing campaigns in 2021 and 2022, together with providing false “earnings ensures.”These ensures promised that drivers could be paid a set quantity in the event that they accomplished a selected variety of rides, however drivers had been solely paid the distinction between what they earned and Lyft’s marketed assured quantity.Sooner or later, Lyft will likely be required to base the numbers in its worker recruitment on the typical earnings of its employees, slightly than the highest-earning Lyft drivers. It’ll additionally want to supply proof of its claims in terms of compensation.Lyft didn’t admit wrongdoing by agreeing to settle.Ridesharing rival Uber received in sizzling water with the FTC for comparable causes in 2017. Uber was fined $10 million for exaggerating the sum of money its drivers made on common and for steering them towards expensive automotive finance packages.
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Uber claimed in its ads that its drivers in New York made $90,000 on common, as an alternative of $61,000, and that it additionally directed drivers to costlier automotive funds than what they may have gotten with their credit score scores. Uber and Lyft drivers have picked up another massive wins in 2024 to this point, a minimum of within the state of Massachusetts.In July, Uber and Lyft drivers within the state received the proper to a $32.50 wage, in addition to company-sponsored vacation pay and sick depart, although they’ll nonetheless be counted as unbiased contractors slightly than staff.
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About Will McCurdy
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I’m a reporter masking weekend information. Earlier than becoming a member of PCMag in 2024, I picked up bylines in BBC Information, The Guardian, The Occasions of London, The Day by day Beast, Vice, Slate, Quick Firm, The Night Commonplace, The i, TechRadar, and Decrypt Media.I’ve been a PC gamer because you needed to set up video games from a number of CD-ROMs by hand. As a reporter, I’m passionate concerning the intersection of tech and human lives. I’ve coated every thing from crypto scandals to the artwork world, in addition to conspiracy theories, UK politics, and Russia and international affairs.
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