Lyft agrees to pay $2.1 million penalty after FTC says company made 'deceptive' claims about how much drivers can earn

Core Viewpoint - The US Department of Justice has filed a lawsuit against Lyft for making deceptive claims regarding driver earnings, leading to a proposed settlement that includes a civil penalty of $2.1 million [1][2][5]. Group 1: Legal Actions and Claims - The lawsuit alleges that Lyft violated the Federal Trade Commission Act by making deceptive earnings claims between April 2021 and June 2022 [2]. - Lyft's advertisements reportedly used earnings calculations based on the 80th percentile, misleading drivers into believing that the figures represented typical earnings [3]. - The complaint highlighted that Lyft's claims about driver earnings did not clarify that tips were included in the hourly amounts, potentially misleading drivers about their actual earnings [3][4]. Group 2: Settlement Details - Lyft has agreed to a proposed settlement that includes a $2.1 million civil penalty, although the company neither admitted nor denied the government's claims [4][5]. - The settlement prohibits Lyft from making any earnings claims without meaningful evidence and requires clear disclosure that tips are not included in stated hourly earnings [5]. - Lyft must also inform drivers that under its earnings guarantees, they will only receive the difference between their regular earnings and the guaranteed amount [5][6].