Legal
Lyft to Pay $2 Million to Resolve FTC Suit Over Driver Pay
- Agency said company lured drivers by over-hyping compensation
- Settlement requires Lyft to base ads on ‘typical earnings’
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Lyft Inc. agreed to pay $2.1 million to resolve a lawsuit by the US Federal Trade Commission accusing the ride-hailing company of deceiving drivers about how much they would earn when consumer demand picked up after the pandemic.
The agency alleged the company misled prospective drivers in advertisements about “Earnings Guarantees” that included bonuses on top of regular pay, according to a complaint filed Friday in federal court in San Francisco, where Lyft is based. A subsequent filing shows that Lyft and the FTC agreed to settle the case.