Uber Drops Twenty Million Dollars To Settle FTC Claims

Jan 21, 2017 06:50 AM EST | Carl Anthony Teves

Just recently, Uber has agreed to release an amount of $20 million as payments to settle the allegations of overstating claims about how much drivers will earn and the amount to be paid for a new vehicle financing. The said agreement was confirmed with the FTC (Federal Trade Commission) on Thursday.

A complaint from FTC has accused the San Francisco-based company in promising an exaggerated income potential of $90,000 (New York) and $74,000 (San Francisco). Later on, the actual amount just came into $61,000 and $53,000 with big differences from what the company had the oath.

While in the middle of a negotiation of the settlement, the company stood firm that their way of calculations when it comes to the incomes differed from the FTC. They also added that they had no any intention of duping potential drivers. It has also stopped their connection with an outside partner in financing cars where there was an in favor of the in-house program to supervise the operation.

In an email, Uber spokesperson addresses a response to an inquiry that they were pleased to go through an agreement with the Federal Trade Commission. They are also up to numerous improvements to the experiences of the drivers during the previous year.

According to Jessica Rich, FTC's director of the bureau of consumer's protection, "Many consumers sign up to drive for Uber, but they shouldn't be taken for a ride about their earnings potential or the cost of financing a car through the company," The Federal Trade Commission also added, the money that will be paid by the transportation network company will be utilized to assist refunds to the affected drivers in the United States of America.

Aside from the company having to release an amount of $20 million for settlement, they were also barred from misconceiving the driver's terms for financing vehicle. Driver campaigners accepted and welcomed the decisional settlement.  

 

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