Information and Alerts
Alert Details
This business has 1 alert.
Government Actions
FTC vs Lyft
On October 25, 2024, Lyft agreed to settle the complaint (case 3:24-cv-07443), brought against the company by the Federal Trade Commission (FTC).
The lawsuit against Lyft stems from the ride-share operator's deceptive earnings claims on drivers' per hour and special incentives pay. It's alleged that Lyft made false and misleading claims in their marketing and advertisements about how much money could be made by driving for Lyft with specific hourly pay in certain areas across the US. Lyft failed to disclose that the income an average drivers could expect to earn were based on the earnings from the top one-fifth drivers. Additionally, Lyft continued to make the deceptive earnings claims even after receiving the FTC's Notice of Penalty Offenses, which notified the company that their advertised earnings claims were unlawful.
Without any admission or denial of the allegations, the proposed settlement will prohibit Lyft from making any earnings claim without meaningful evidence to support the claim, prohibited from any making any claims about included tips being a part of the hourly pay, and $2.1 million in civil penalty. The settlement will require Lyft to disclose to their drivers under Lyft's earnings guarantees that drivers will receive the difference between regular earnings and the guaranteed amount. Lyft is also required to provide the notice to their drivers about the settlement.
Important Information
Customer Complaint
BBB’s file for Lyft was created in August 2011. Following BBB’s review of complaints done in April 2024. Complaints on file state concerns with the cost difference between the quoted amount and the final charge, and alleged concerns of being charged for rides never completed.
BBB recommends reviewing Lyft Terms of Service with special attention to the following:
- Quoted Fares.
- Variable Fares.
- Ride-share Service Fees and Other Charges.
For any issues or concerns, please visit Lyft Help.
Service Area
- CA
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