Uber to pay $20 million for falsely advertising to drivers

Uber in an attempt to drive more drivers to their company put out ads last year stating that the drivers would earn an average of $25 an hour accumulating to $90,000 a year for any official Uber driver.
By Miriam Griffin | Jan 20, 2017
Uber in an attempt to drive more drivers to their company put out ads last year stating that the drivers would earn an average of $25 an hour accumulating to $90,000 a year for any official Uber driver. This would put the comfortably in the middle-class region.

But the Uber drivers have gone on and sued the company for falsely advertising their products. They insist that on average they make around $16 an hour. But this goes significantly lower when Uber drivers major the inner cities where Uber's are considered a luxury. Many drivers in Baltimore say they average around $12 an hour and cannot even reach the 40-hour target per week.

However, they also state that 10 percent of the drivers do get to the $25 an hour advertised. Uber agreed to pay these drivers $20 million as compensation for the money not earned from their advertising.

"We're pleased to have reached an agreement with the FTC," a spokeswoman said. "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 drivers argued that they take the risk to be the drivers which including late nights, the risk of harm from pretend Uber customers.

But Uber say that the settlement is not an admission of guilt instead it was instead following the FTU's ruling.

"The reality of being a ride-sharing driver is a far cry from the rosy picture these apps describe and it is encouraging to see the FTC take them to task and refund drivers," said Jim Conigliaro from the Independent Drivers Guild.

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