Uber will be paying a $20 million fine for inflating the driver pay potential of its employees.
The $20 million fine that Uber has agreed to pay is its settlement with the Federal Trade Commission (FTC). The FTC claims that the ride-hailing company told drivers in New York and San Francisco that they could make up to $90,000 and $74,000. However, the real numbers were $61,000 and $53,000.
Another set of claims that the settlement between Uber and the FTC covers leasing and car ownership issues. The organization says that the company didn’t actually tell employees how expensive it would be to buy or lease a car for the service.
The final part of the agreement with the FTC makes it so that Uber isn’t allowed to misrepresent driver pay or automobile costs. The ride-hailing company says that it is happy to have reached an agreement with the FTC. It also notes that it has made changes over the last year to improve driver experience, reports Reuters.
Uber is still keeping driver pay numbers in its advertisements. However, the company is now working with a team of economists to make sure its numbers are as accurate as possible. This is likely an effort to still pull in drivers without having to face another fine from the FTC.
One solution to Uber’s problem could be to just remove the driver from the scenario completely. The company was conducting tests of self-driving cars in California, but had to end them early due to not following proper regulations.
