The Federal Trade Commission said it is taking action against Lyft (LYFT) “for making deceptive earnings claims about how much money drivers could expect to make per hour and how much they could earn in special incentives.” Lyft has agreed to a proposed settlement that would require its claims about drivers’ pay to be based on typical earnings. In addition, Lyft has agreed to back up with evidence any claims it makes about drivers’ pay, clearly notify drivers about the terms of its “earnings guarantee” offers, and pay a $2.1M civil penalty, according to the FTC. The Department of Justice filed the lawsuit and proposed settlement upon notification and referral from the FTC. The complaint against Lyft alleges that as demand for rideshare services increased in 2021 and 2022, Lyft made numerous false and misleading claims in its advertising and marketing about how much money consumers could make if they chose to drive for Lyft.
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