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Lyft pays $2.1 million to settle case alleging the ride-hailing service deceived drivers
Lyft is paying $2.1 million to settle a lawsuit accusing the ride-hailing service of exaggerating how much money drivers could make while the company was trying to recover from a steep downturn in demand during the pandemic.
SAN FRANCISCO (AP) — Lyft is paying $2.1 million to settle a lawsuit accusing the ride-hailing service of exaggerating how much money drivers could make while the company was trying to recover from a steep downturn in demand during the pandemic. Both the Justice Department and Federal Trade Commission have been investigating Lyft since uncovering evidence that it was advertising inflated compensation rates while trying to to recruit more drivers as the pandemic began to ease and ride-hailing demand perked up. “The Justice Department will vigorously enforce the law to stop companies from misleading Americans about their potential earnings in the gig economy,” Principal Deputy Assistant Attorney General Brian M. Boynton said in a Friday statement.
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