Uber Agrees to $20M Settlement After Claim it Falsely Advertised High Income to 'Entice' Potential Drivers - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Uber Agrees to $20M Settlement After Claim it Falsely Advertised High Income to 'Entice' Potential Drivers

by

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."

uber-beacon-1
According to the FTC, the truth is that the median income is $29,000 less than Uber claimed in New York, and $21,000 less in San Francisco, specifically when looking at hours locked to a standard 40-hour work week. In total, less than 10 percent of drivers in New York and San Francisco have reached Uber's $90,000 and $74,000 yearly income claim, respectively.

"To induce individuals to become Uber Drivers, Uber has advertised and marketed the earning potential of its Drivers on Craigslist, its company website, and other advertising and marketing media. Uber has publicized high annual and hourly earnings to entice consumers to become Uber Drivers. However, once Drivers have begun to receive their paychecks, Drivers have discovered their actual earnings were substantially less than Uber has claimed."

The complaint specifically mentions a collection of job postings published by Uber in cities across the United States, all backing Uber's inflated earnings rate that the FTC sees as a false tactic to get drivers onto the service.

uber-ftc-complaint
Uber also has "made numerous claims" regarding the cheap cost and unlimited mileage of its Vehicle Solutions Program, which lets drivers buy or lease a car they can use to drive for Uber. According to the FTC's complaint, the company "has had no basis with which to make these claims," saying that Uber has had zero oversight or even monitored the terms and conditions of any driver entering into the Vehicle Solutions Program.

"Further, Drivers in Uber's Vehicle Solutions Program - which has connected Drivers with subprime auto companies and dealers - have in many instances received worse than industry average rates, made payments for hundreds of dollars more per month than advertised, and entered into leases imposing costs for mileage."

Uber CEO Travis Kalanick has acknowledged the FTC's complaint in the settlement agreement, and a company spokesperson said the following in a statement:

“We’re pleased to have reached an agreement with the FTC,” an Uber spokesperson said in a statement. “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.”

The ride-hailing company has hit a few rocky patches over the past few months, most recently hearing concerns from users after an update introduced background GPS tracking that follows a rider up to five minutes after their trip ends and even if the app is closed. A company spokeswoman told BuzzFeed News in December that one of the biggest advantages of the five minute tracking update is that it "could also help customer service representatives investigate complaints or safety issues" raised by users following a ride.

Tag: Uber

Top Rated Comments

dwaltwhit Avatar
127 months ago
Important Apple news???????
Uber is a heavily downloaded app from the app store, which means a huge portion of iPhone users are uber users, which means uber news is important to many people with iPhones
Score: 10 Votes (Like | Disagree)
Quu Avatar
127 months ago
Scumbags.
Score: 7 Votes (Like | Disagree)
whyamihere Avatar
127 months ago
Hating this company more and more I recently got an email from Uber that they noticed I had turned off location services for my Uber app and that I should go back in and turn them on. Seriously?? I bet they are sending out a lot of these emails lately due to their lack of concern for user privacy.

My response to that is the same I continue to list in my review on the App store every time they push a BS update to try and clear out the 1-star reviews... as soon as you put the option back to allow location only when using the app, I'll start using your service again. Until then, Lyft it is.
Score: 5 Votes (Like | Disagree)
127 months ago
What an absolute piddly fine for the level of their deceit.
Score: 3 Votes (Like | Disagree)
smacrumon Avatar
127 months ago
Class action. Sue this company, sue it badly.
Score: 3 Votes (Like | Disagree)
127 months ago
I know a lot of classmates and friends that work for Uber. When they found out you can make more money working at Costco, some of them quit.

The economy will get better and drivers will soon learn that Uber isn't the money making place they thought it would be.
Score: 2 Votes (Like | Disagree)

Popular Stories

Home Hub Command Center with Dome Base Feature

Apple Smart Home Hub to Feature iMac G4-Style Design

Wednesday September 30, 2026 4:36 am PDT by
Apple's long-rumored smart home hub will have an iMac G4-style design and a host of unique features, Bloomberg's Mark Gurman reports. The smart home hub is said to feature a square 6-inch display, with variants that can be placed on a countertop or mounted on a wall. It features a single FaceTime camera on the front, with microphones and speakers in its connected base. Gurman described the...
HomePod minis on gradient feature 1 1

Three New Apple Smart Home Products Coming on October 13

Wednesday September 30, 2026 4:04 am PDT by
Apple plans to introduce a series of new smart home products on Tuesday, October 13, according to Bloomberg's Mark Gurman. Apple reportedly plans to debut its long-awaited smart home hub device, a new HomePod mini, and a new Apple TV on the date. The new HomePod mini and Apple TV are set to retain their existing designs, but tout faster chips to support Siri AI. The new HomePod mini will...
Apple TV Sans Remote Feature

New Apple TV 4K Leaked

Friday September 25, 2026 8:16 am PDT by
MacRumors contributor Aaron Perris has uncovered an image file from Apple for an unreleased Apple TV 4K, suggesting that a new model will finally be released soon. The image is specifically for an "Apple TV 4K (4th generation)" model. Apple TV 4K (4th generation) image (on a gradient) The image reveals that the Apple TV will have the same external design as the current model, with all of its...
Latest Stories
iPhone 18 Pro Sales Jump in China Ahead of iPhone Duo Launch
iPhone 18 Pro Sales Jump in China Ahead of iPhone Duo Launch
15 minutes ago
Apple TV Still Down for Some Users Following Apple Services Outage
Apple TV Still Down for Some Users Following Apple Services Outage
1 hour ago
PSA: Apple Mail on Mac May Stop Syncing Microsoft 365 Accounts Today
PSA: Apple Mail on Mac May Stop Syncing Microsoft 365 Accounts Today
1 hour ago
Apple's Smart Home Hub: Everything We Know So Far
Apple's Smart Home Hub: Everything We Know So Far
12 hours ago
Apple's Home Hub Borrows From the iPhone Duo's StandBy Mode
Apple's Home Hub Borrows From the iPhone Duo's StandBy Mode
13 hours ago
Apple Invites App Updated With Three New Features
Apple Invites App Updated With Three New Features
17 hours ago
Apple Event on October 13?
Apple Event on October 13?
18 hours ago
Apple Watch SE 3 vs. Series 12 Buyer's Guide: Which Should You Buy?
Apple Watch SE 3 vs. Series 12 Buyer's Guide: Which Should You Buy?
20 hours ago
iPad Mini 8 to Offer These 10 New Features
iPad Mini 8 to Offer These 10 New Features
20 hours ago
DoorDash Unveils AI Food Ordering Through Apple's Messages App
DoorDash Unveils AI Food Ordering Through Apple's Messages App
21 hours ago
Amazon Takes Up to $150 Off Select M5 MacBook Air Models
Amazon Takes Up to $150 Off Select M5 MacBook Air Models
22 hours ago
Apple Still Plans to Release a New Full-Sized HomePod
Apple Still Plans to Release a New Full-Sized HomePod
23 hours ago
Apple Working to Expand HomeKit
Apple Working to Expand HomeKit
1 day ago
Apple Smart Home Hub to Feature iMac G4-Style Design
Apple Smart Home Hub to Feature iMac G4-Style Design
1 day ago
Three New Apple Smart Home Products Coming on October 13
Three New Apple Smart Home Products Coming on October 13
1 day ago
Apple Pay Now Available in India With Axis Bank Cards
Apple Pay Now Available in India With Axis Bank Cards
2 days ago
OpenAI Launches Always-On 'Dots' Agents to Rival Meta's Muse
OpenAI Launches Always-On 'Dots' Agents to Rival Meta's Muse
2 days ago
AirPods 5 Teardown: Batteries Removable, Case Still Tough
AirPods 5 Teardown: Batteries Removable, Case Still Tough
2 days ago
iPhone 18 Pro Owners Complain of Speaker Crackling or Popping
iPhone 18 Pro Owners Complain of Speaker Crackling or Popping
2 days ago
You Can 'Get Ready' for iPhone Duo Pre-Orders on October 12
You Can 'Get Ready' for iPhone Duo Pre-Orders on October 12
2 days ago
Apple Pay Reportedly Launching in India Today
Apple Pay Reportedly Launching in India Today
2 days ago
Apple Releases New AirPods Beta Firmware
Apple Releases New AirPods Beta Firmware
2 days ago
Apple Shares New Guide for Using iOS 27 Parental Controls
Apple Shares New Guide for Using iOS 27 Parental Controls
2 days ago
Apple Creator Studio and Final Cut Camera Get New Features
Apple Creator Studio and Final Cut Camera Get New Features
2 days ago
Apple Explains Why It Removed ICE Tracking Apps Last Year
Apple Explains Why It Removed ICE Tracking Apps Last Year
2 days ago
Amazon Expands $779.99 Apple Watch Ultra 4 Deal to More Models
Amazon Expands $779.99 Apple Watch Ultra 4 Deal to More Models
2 days ago
Switch Siri AI for ChatGPT on Your Mac
Switch Siri AI for ChatGPT on Your Mac
2 days ago
Apple Says Emergency SOS via Satellite Now Available in Norway
Apple Says Emergency SOS via Satellite Now Available in Norway
2 days ago
AppleCare Guide: Is it Worth Paying For?
AppleCare Guide: Is it Worth Paying For?
2 days ago
Apple Reportedly Planned to Replace 5,000 Support Employees With AI
Apple Reportedly Planned to Replace 5,000 Support Employees With AI
2 days ago

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors