Uber has agreed to pay $20 million to drivers who claim they received less pay but faced higher costs after being recruited by the ride-sharing service.
The settlement with the Federal Trade Commission is the latest in a series of legal battles for San Francisco-based Uber Technologies, the company last month ending an autonomous vehicle test project in its home town after a run-in with California over its refusal to get the necessary permits.
The FTC settlement centers around a recruitment effort by Uber which, driver’s alleged, had promised them high pay for their services. But the government determined that only a small number of drivers operating in 18 major cities earned what the ride-sharing service had published online. It also determined that drivers were paying higher-than-promised fees to lease the vehicles they drove.