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Lyft lured drivers with false claims about pay, FTC says. Company will pay $2.1 million

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Lyft lured drivers by advertising eye-catching earnings — up to $43 an hour in L.A. — but only 1 in 5 drivers were actually making these rates, the FTC said

When Lyft faced a driver shortage in 2021, the ride-hailing company launched a major marketing campaign to lure drivers with eye-catching earnings — up to $43 an hour in Los Angeles, $41 in Portland and $33 in Atlanta, according to the Federal Trade Commission. What these advertisements failed to mention was that only 1 in 5 drivers were actually making these rates, the FTC said. On Monday, the agency and the Department of Justice announced that Lyft had agreed to pay a $2.

' In addition to advertising that misled drivers on hourly pay rates, the FTC also said Lyft's 'earnings guarantee' program was misleading. This program promised big payoffs for completing a certain number of rides within a set time period, such as $975 for completing 45 rides in a weekend, according to the FTC.

 

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