In a lawsuit, the U.S. Department of Justice and FTC allege that Lyft inflated driver pay claims, misrepresenting earnings to attract drivers, with only 20% earning as much.
Lyft's misleading ads led to a 24% increase in new driver leads, with many likely misunderstanding the claim of potentially high pay compared to actual earnings.
The lawsuit notes that by omitting the phrase 'up to' on some job boards, Lyft's ads made inflated wage claims without necessary context, misleading potential drivers.
Faced with a $2.1 million fine, Lyft's deceptive ad claims utilized small print that many prospective drivers likely did not read or comprehend.
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