Taxi-hailing app Uber Technologies is paying $20 million in a settlement with the U.S. government over charges it exaggerated potential earnings when trying to recruit drivers.
According to the report, the charges also include Uber downplaying the costs associated with buying or leasing a vehicle. Reuters reported that the Federal Trade Commission (FTC) contends Uber said on its website that drives made greater than $90,000 in New York and $74,000 in San Francisco when the actual amount drivers earned was $61,000 in New York and $53,000 in San Francisco. What’s more, the Vehicle Solutions Program run by Uber provided inaccurate prices for leasing and owning vehicles to use for their Uber jobs.
“This settlement will put millions of dollars back in Uber drivers’ pockets,” said Jessica Rich, director of the agency’s Bureau of Consumer Protection, according to Reuters. In a statement, Uber said it was “pleased” to have settled with the FTC.
“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,” Uber said. Uber is paying the $20 million fine and is barred from misrepresenting the earnings drivers can make.
This isn’t the first fight Uber has had with regulators of cities, but it’s been willing to play nice more recently. Earlier this month, it turned over a treasure trove of data on transportation, which may help officials reduce traffic during commutes and improve the flow of traffic. According to a report, the data, which Uber loaded onto a public website, reveals the time it takes to travel between different cities around the country at different times. The data comes from Uber’s logs of trips that millions of riders around the country take every day.
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