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Uber Agrees to $20M Settlement After Claim it Falsely Advertised High Income to 'Entice' Potential Drivers
The Federal Trade Commission recently filed a complaint against popular ride-hailing app Uber for posting inflated yearly wages on various job-seeking websites, which "enticed numerous consumers to become Uber drivers" under false pretenses, according to the FTC. Uber isn't fighting the allegations placed against it, and has instead this week quickly agreed to a settlement deal in the way of paying $20 million as equitable relief to the FTC.
As reported by BuzzFeed News, the FTC's complaint explains that from May 2014 through August 2015 Uber published a statement on its website which included various annual earning rates for its drivers. In the post the company mentioned that for UberX drivers the "median income is more than $90,000/year/driver in New York and more than $74,000/year/driver in San Francisco.