The Federal Trade Commission recently filed a complaint against popular ride-hailing app Uber for posting inflated yearly wages on various job-seeking websites, which "enticed numerous consumers to become Uber drivers" under false pretenses, according to the FTC. Uber isn't fighting the allegations placed against it, and has instead this week quickly agreed to a settlement deal in the way of paying $20 million as equitable relief to the FTC.

As reported by BuzzFeed News, the FTC's complaint explains that from May 2014 through August 2015 Uber published a statement on its website which included various annual earning rates for its drivers. In the post the company mentioned that for UberX drivers the "median income is more than $90,000/year/driver in New York and more than $74,000/year/driver in San Francisco."

uber-beacon-1
According to the FTC, the truth is that the median income is $29,000 less than Uber claimed in New York, and $21,000 less in San Francisco, specifically when looking at hours locked to a standard 40-hour work week. In total, less than 10 percent of drivers in New York and San Francisco have reached Uber's $90,000 and $74,000 yearly income claim, respectively.

"To induce individuals to become Uber Drivers, Uber has advertised and marketed the earning potential of its Drivers on Craigslist, its company website, and other advertising and marketing media. Uber has publicized high annual and hourly earnings to entice consumers to become Uber Drivers. However, once Drivers have begun to receive their paychecks, Drivers have discovered their actual earnings were substantially less than Uber has claimed."

The complaint specifically mentions a collection of job postings published by Uber in cities across the United States, all backing Uber's inflated earnings rate that the FTC sees as a false tactic to get drivers onto the service.

uber-ftc-complaint
Uber also has "made numerous claims" regarding the cheap cost and unlimited mileage of its Vehicle Solutions Program, which lets drivers buy or lease a car they can use to drive for Uber. According to the FTC's complaint, the company "has had no basis with which to make these claims," saying that Uber has had zero oversight or even monitored the terms and conditions of any driver entering into the Vehicle Solutions Program.

"Further, Drivers in Uber's Vehicle Solutions Program - which has connected Drivers with subprime auto companies and dealers - have in many instances received worse than industry average rates, made payments for hundreds of dollars more per month than advertised, and entered into leases imposing costs for mileage."

Uber CEO Travis Kalanick has acknowledged the FTC's complaint in the settlement agreement, and a company spokesperson said the following in a statement:

“We’re pleased to have reached an agreement with the FTC,” an Uber spokesperson said in a statement. “We’ve made many improvements to the driver experience over the last year and will continue to focus on ensuring that Uber is the best option for anyone looking to earn money on their own schedule.”

The ride-hailing company has hit a few rocky patches over the past few months, most recently hearing concerns from users after an update introduced background GPS tracking that follows a rider up to five minutes after their trip ends and even if the app is closed. A company spokeswoman told BuzzFeed News in December that one of the biggest advantages of the five minute tracking update is that it "could also help customer service representatives investigate complaints or safety issues" raised by users following a ride.

Tag: Uber

Top Rated Comments

dwaltwhit Avatar
77 months ago
Important Apple news???????
Uber is a heavily downloaded app from the app store, which means a huge portion of iPhone users are uber users, which means uber news is important to many people with iPhones
Score: 10 Votes (Like | Disagree)
Quu Avatar
77 months ago
Scumbags.
Score: 7 Votes (Like | Disagree)
whyamihere Avatar
77 months ago
Hating this company more and more I recently got an email from Uber that they noticed I had turned off location services for my Uber app and that I should go back in and turn them on. Seriously?? I bet they are sending out a lot of these emails lately due to their lack of concern for user privacy.

My response to that is the same I continue to list in my review on the App store every time they push a BS update to try and clear out the 1-star reviews... as soon as you put the option back to allow location only when using the app, I'll start using your service again. Until then, Lyft it is.
Score: 5 Votes (Like | Disagree)
smacrumon Avatar
77 months ago
Class action. Sue this company, sue it badly.
Score: 3 Votes (Like | Disagree)
chinesedemo Avatar
77 months ago
What an absolute piddly fine for the level of their deceit.
Score: 3 Votes (Like | Disagree)
unplugme71 Avatar
77 months ago
I know a lot of classmates and friends that work for Uber. When they found out you can make more money working at Costco, some of them quit.

The economy will get better and drivers will soon learn that Uber isn't the money making place they thought it would be.
Score: 2 Votes (Like | Disagree)

Popular Stories

Emergency SOS via Satellite iPhone YT

Apple's iPhone 14 Emergency SOS via Satellite Feature Saves Stranded Man in Alaska

Thursday December 1, 2022 4:37 pm PST by
With the launch of iOS 16.1, Apple rolled out a Emergency SOS via Satellite, which is designed to allow iPhone 14 owners to contact emergency services using satellite connectivity when no cellular or WiFi connection is available. The feature was put to the test in Alaska today, when a man became stranded in a rural area. In the early hours of the morning on December 1, Alaska State Troopers ...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Launching This Month With These 8 New Features

Thursday December 1, 2022 8:44 am PST by
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far. iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
iOS 16

Apple Releases iOS 16.1.2 With Carrier Improvements and Crash Detection Optimizations

Wednesday November 30, 2022 10:09 am PST by
Apple today released iOS 16.1.2, another minor bug fix update that comes one week after the release of iOS 16.1.1 and three weeks after the launch of iOS 16.1, an update that added support for iCloud Shared Photo Library, Matter, Live Activities, and more. The iOS 16.1.2 update can be downloaded on eligible iPhones over-the-air by going to Settings > General > Software Update. According...
iPad 10 Battery Pull Tabs

iPad 10 Teardown Reveals Why Device Isn't Compatible With Apple Pencil 2

Thursday December 1, 2022 10:48 am PST by
Do-it-yourself repair website iFixit today shared a video teardown of Apple's new 10th-generation iPad, providing a closer look inside the tablet and revealing why the device lacks support for the second-generation Apple Pencil. The teardown reveals the internal layout of the iPad, including its two-cell 7,606 mAh battery, logic board with the A14 Bionic chip, and more. As suspected, the...
iOS 16

When Will iOS 16.2 Be Released?

Friday December 2, 2022 2:13 pm PST by
Apple in late October began testing iOS 16.2 and iPadOS 16.2 updates, providing betas to both developers and public beta testers. As of now, we've had four total betas, with the fourth beta having been released earlier this week. iOS 16.2 and iPadOS 16.2 are expected before the end of the year, and we thought we'd try to narrow down the launch timeline. With only four betas released since...
14 vs 16 inch mbp m2 pro and max feature 1

Major RAM Upgrade Coming to Next-Generation MacBook Pro

Friday December 2, 2022 2:03 am PST by
The next-generation MacBook Pro models could feature faster RAM, according to a recent report from a reliable source. MacRumors Forums member "Amethyst," who accurately revealed details about the Mac Studio and Studio Display before those products were announced, recently provided information about Apple's upcoming 14- and 16-inch MacBook Pro models. The new machines are expected to feature...
iOS 16

Apple Still Has These 5 Things to Release Heading Into 2023

Thursday December 1, 2022 7:12 am PST by
The calendar has turned to December and that means Apple has only one month left to fulfill its promises of releasing an Apple Music Classical app and expanding its self-service repair program to Europe before the end of 2022. Delays are always possible, of course, so the plans could be pushed back to 2023. In any case, we have put together a list of five things that Apple still has to release...
iOS 16

Apple Seeds Fourth Betas of iOS 16.2 and iPadOS 16.2 [Update: Public Beta Available]

Thursday December 1, 2022 10:16 am PST by
Apple today seeded the fourth betas of upcoming iOS 16.2 and iPadOS 16.2 updates to developers for testing purposes, with the betas coming two weeks after Apple seeded the third betas of iOS 16.2 and iPadOS 16.2. Registered developers are able to download the iOS 16‌.2 and iPadOS 16.2 profiles from the Apple Developer Center, and once installed, the beta is available over the air. iOS...
iPhone Measure Height

Newer iPhones Allow You to Measure Someone's Height Instantly — Here's How

Saturday December 3, 2022 10:23 am PST by
iPhone 12 Pro and Pro Max, iPhone 13 Pro and Pro Max, and iPhone 14 Pro and Pro Max models feature a LiDAR Scanner next to the rear camera that can be used to measure a person's height instantly in Apple's preinstalled Measure app. To measure a person's height, simply open the Measure app, point your iPhone at the person you want to measure, and make sure they are visible on the screen from...
apple ar headset concept 2

Apple Now Calling AR/VR Headset Operating System 'xrOS'

Thursday December 1, 2022 12:57 pm PST by
Apple has decided to call the software that will run on its upcoming AR/VR headset "xrOS," an update from the original "RealityOS or "rOS" naming the company was planning on, according to Bloomberg. Render created by Ian Zelbo based on rumored information The name change comes as Apple begins to prepare for the launch of the headset, which is expected at some point in 2023. The headset will...