The Federal Trade Commission (FTC) announced on Friday it had taking action against rideshare company Lyft for deceiving drivers with inflated earnings claims.
The FTC's complaint alleged that Lyft's ads promised drivers high hourly rates—up to $43 per hour in some cities—based on top earners and did not reflect average earnings. Lyft also misled drivers about guaranteed earnings, suggesting they would earn bonuses rather than just the difference between their earnings and the guarantee.
According to the regulator, Lyft will pay a $2.1 million civil penalty and has agreed to back up its pay claims with evidence, clearly notify drivers about earnings guarantee terms, and avoid including tips in hourly pay figures. "It is illegal to lure workers with misleading claims about how much they will earn on the job," FTC Chair Lina M. Khan said. "The FTC will keep using all its tools to hold businesses accountable when they violate the law and exploit American workers."
