The Drum Awards for Marketing - Extended Deadline

-d -h -min -sec

Uber Marketing

Uber agrees to pony up $20 million to settle allegations it misled drivers in US

Author

By Kyle O'Brien, Creative Works Editor

January 20, 2017 | 2 min read

Ride share company Uber has agreed to pay $20m to settle claims that it misled drivers about prospective earnings, according to a story by Reuters.

Documents filed with a US federal court claimed that the ride-hailing company exaggerated prospective earnings when it recruited drivers and downplayed the costs of buying or leasing a car. The company had stated on its website that some Uber drivers made more than $90,000 in New York, when the real earnings were $61,000, the Federal Trade Commission said in a statement.

"When Uber’s promised earnings have not materialized, and drivers have attempted to cancel their auto agreements, they have incurred significant monetary harm," the Federal Trade Commission said in its complaint. "Uber’s practices have caused its drivers to suffer millions of dollars of injury."

Uber, which has over 600,000 drivers in the US, would also be barred from misrepresenting its drivers’ earnings or payments for cars under the agreement reached with the Federal Trade Commission and Uber.

"This settlement will put millions of dollars back in Uber drivers’ pockets," said Jessica Rich, director of the agency's Bureau of Consumer Protection, as cited in the Reuters story.

Uber Marketing

More from Uber

View all

Trending

Industry insights

View all
Add your own content +