FTC Takes Action to Stop Lyft from Deceiving Drivers with Misleading Earnings Claims

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Proposed court order requires Lyft to have evidence to back up earnings claims, clearly notify drivers about terms of incentives, pay more than $2 million civil penalty

October 25, 2024


The FTC is taking action against rideshare operator Lyft for making deceptive earnings claims about how much money drivers could expect to make per hour and how much they could earn in special incentives.

Lyft has agreed to a proposed settlement that would require its claims about drivers’ pay to be based on typical earnings. In addition, Lyft has agreed to back up with evidence any claims it makes about drivers’ pay, clearly notify drivers about the terms of its “earnings guarantee” offers, and pay a $2.1 million civil penalty.

The U.S. Department of Justice filed the lawsuit and proposed settlement upon notification and referral from the FTC.

“It is illegal to lure workers with misleading claims about how much they will earn on the job,” said FTC Chair Lina M. Khan. “The FTC will keep using all its tools to hold businesses accountable when they violate the law and exploit American workers.”
https://www.ftc.gov/news-events/news/press-releases/2024/10/ftc-takes-action-stop-lyft-deceiving-drivers-misleading-earnings-
claims

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