Lyft Fined $2.1 Million for Misleading Driver Earnings Claims

The FTC settlement requires Lyft to accurately represent driver pay without including tips or inflated figures.

Lyft's advertisements in 2021 and 2022 exaggerated driver earnings by up to 30%, based on top performers rather than average drivers.
The FTC found that Lyft included passenger tips in their advertised hourly rates, misleading potential drivers about true earnings.
Lyft's earnings guarantees were also misleading, as drivers believed they would receive bonuses rather than just minimum pay differences.
The settlement mandates Lyft to base earnings claims on typical driver pay and to provide clear, evidence-backed information.
Despite the fine, some FTC commissioners argued against the decision, suggesting that consumers expect exaggeration in advertising.