Uber to pay $20m to settle charge it misled drivers
AFP
AFP, SAN FRANCISCO: Uber has agreed to pay $20 million to settle charges that the ride-sharing company exaggerated claims about driver pay and new car financing, US regulators said on Thursday.
The money paid by San Francisco-based Uber Technologies will be used to provide refunds to affected drivers in the United States, according to the Federal Trade Commission.
Many consumers sign up to drive for Uber, but they shouldnt be taken for a ride about their earnings potential or the cost of financing a car through Uber, FTC bureau of consumer protection director Jessica Rich said in a release.
An FTC complaint accused Uber of exaggerating income potential in certain cities to attract new drivers, and making the terms of its vehicle-financing program appear more attractive than they were.
Uber had claimed that uberX drivers median annual incomes topped $90,000 in New York and $74,000 in San Francisco, when the actual amounts came to $61,000 and $53,000 respectively, the FTC said.
The complaint also contended that while Uber claimed that its Vehicle Solutions Program provided the best financing options available, drivers received worse deals on average when it came to interest rates and leasing terms.
While negotiating the settlement, Uber held firm that its approach to calculating incomes differed from the FTCs, saying the company had no intention of deceiving prospective drivers.
Uber has recently stopped using an outside partner for financing vehicles in favor of an in-house program to better oversee the process.
Were pleased to have reached an agreement with the FTC, an Uber spokeswoman said in an email response to an AFP inquiry.
Weve made many improvements to the driver experience over the last year.
