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Uber has agreed to pay $19.7 million to end a Federal Trade Commission (FTC) lawsuit that accused the company of advertising inflated wages for drivers.
According to the FTC lawsuit, Uber made deceptive income promises to prospective drivers by falsely inflating the money they could make working for the ride share company.
The FTC also alleged that Uber deceived drivers about vehicle financing options.
“Many consumers sign up to drive for Uber, but they shouldn’t be taken for a ride about their earnings potential or the cost of financing a car through Uber,” said the director of FTC’s Bureau of Consumer Protection in a statement. “This settlement will put millions of dollars back in Uber drivers’ pockets.”
Qualifying Uber drivers will receive checks from the FTC as a part of the settlement agreement. The average check will total $222.96, according to the consumer protection agency.
The FTC reports that it will be sending nearly 90,000 checks to Uber drivers in major cities across the country, including:
- Atlanta, GA
- Baltimore, MD
- Boston, MA
- Chicago, IL
- Dallas, TX
- Denver, CO
- Houston, TX
- Los Angeles, CA
- Miami, FL
- Minneapolis-St. Paul, MN
- New Jersey
- New York City, NY
- Orange County, CA
- Philadelphia, PA
- Phoenix, AZ
- San Diego, CA
- San Francisco, CA
- Seattle, WA
- Washington D.C.
Uber drivers who receive a check from the FTC will need to cash it within 60 days.
The FTC accused the ride sharing company of making deceptive income promises to Uber drivers in January 2017.
According to the agency, Uber’s website listed the annual incomes of Uber drivers in major cities in amounts far exceeding the actual income of average drivers in the area.
According to the FTC, Uber represented that uberX drivers in New York made an average income of more than $90,000 and uberX drivers in San Francisco made more than $74,000.
However, the agency found that on average, Uber drivers in those markets made far below what Uber presented on its website – only $61,000 in New York and $53,000 in San Francisco.
In fact, according to the FTC lawsuit, only a sliver of Uber drivers made the incomes advertised on the Uber website.
Further, alleged that FTC, the ride share company duped would-be Uber drivers into falsely advertised vehicle financing options under its “Vehicle Solutions Program.”
According to Uber the program “connects drivers with any kind of credit history to the best financing options available.”
Uber allegedly told drivers that they could own or lease a car for $17 to $20 per day. Further, the company told Uber drivers that the leases would come with unlimited mileage.
The FTC contended that these representations were false on the part of Uber. Uber drivers complained of receiving higher loan rates under the Vehicle Solutions Program than they would have otherwise.
Additionally, the leases came with mileage limits, contradicting Uber’s advertising.
In addition to the $20 million settlement, Uber was also hit with an order prohibiting it from advertising deceptive income promises, as well as vehicle financing options.
If you have questions regarding the FTC Uber driver refund checks, contact the refund administrator at 1-888-506-8281.
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9 thoughts onFTC Mailing $19M to Uber Drivers for Deceptive Income Promises
I’ve been working for Uber for 3 years now. I’d like information on this lawsuit.
I’ve been driving for Uber full time for over a year and half.
WAY UNDER PAID. Not even close
please let me know if I’m eligible
I have driving for Uber for 5 years in Sacramento ca. about 17,000 trips. I leased a car from Uber xchange leasing for 155.92 per week. Please let me know if I am eligible, Thank you
Please add me to the uber settlement been with uber since 2015 this happening to me.
how do I collect. I drive Uber and don’t make jack.
Add me please
please add me . I am an uber driver and I appear to qualify as this happened to me
Why do clams for disability take so long?