Uber Technologies Inc has consented to pay $20 million to settle claims by the U.S. government that it overemphasized prospective incomes in their way to hire drivers and minimized the expenses of purchasing or renting a vehicles, files submitted with a federal court on Thursday revealed.
The company noted on its website that some Uber drivers made over $90,000 in New York and $74,000 in San Francisco when the actual incomes were $61,000 and $53,000, respectively, the Federal Trade Commission stated. It stated Uber’s Vehicle Solutions Program provided incorrect costs for renting a car.
“This settlement will put millions of dollars back in Uber drivers’ pockets,” stated Jessica Rich, director of the agency’s Bureau of Consumer Protection.
Under Uber’s company model, customers utilize an app to hail a trip and pay Uber for it. The trip is supplied by an independent specialist, who is paid by Uber.
“When Uber’s assured incomes have not emerged, and drivers have tried to cancel their vehicle arrangements, they have incurred substantial financial damage,” the Federal Trade Commission stated in its complaint. “Uber’s practices have actually triggered its drivers to suffer millions of dollars of injury.”
Uber, which has operations in 74 nations, stated it was “pleased” to have accomplish an agreement with the Federal Trade Commission.
“We’ve made numerous enhancements to the driver experience over the 2016 and will continue to concentrate on making sure that Uber is the best choice for anybody planning to make money on their own schedule,” Uber stated.
Business representative Matt Kallman stated Uber has over 600,000 drivers in the United States.
In addition to the $20 million payment, Uber would be disallowed under the agreement from misrepresenting its motorists’ incomes or payments for vehicles.
