Lyft fined $2.1 million by US FTC for misleading earnings claims to drivers
The FTC has fined Lyft $2.1 million, claiming the rideshare company misled drivers with exaggerated earnings promises and unclear pay guarantees.
Lyft has been fined $2.1M by the US Federal Trade Commission (FTC) for allegedly misleading drivers about potential earnings. The settlement requires the rideshare company to adjust how it advertises driver pay, after it was found that earnings claims were exaggerated, often highlighting what only the top fifth of drivers made, and including tips in those figures.
The FTC stated that some Lyft ads claimed drivers could make ‘up to $33’ per hour in certain cities in the US, such as Atlanta, but these figures did not reflect average earnings. Instead, most drivers earned significantly less, with advertised pay inflated by as much as 30%. As part of the settlement, Lyft must now base earnings estimates on what typical drivers make, excluding tips from hourly pay claims.
In addition, Lyft’s guarantees, such as a $975 payout for completing 45 rides over a weekend, were found to be misleading. Drivers believed the amount would be a bonus, but it was actually a conditional minimum guarantee. The FTC stressed the need for accurate representation of driver pay, with Chair Lina M. Khan emphasising the agency’s commitment to protecting workers from deceptive claims.