The Federal Trade Commission's lawsuit against Lyft highlights the misleading nature of the company's advertising, particularly regarding driver earnings which inflated expectations.
The FTC claims Lyft's ads suggested potential driver earnings based on the top 20% of drivers, creating a misrepresentation of what the majority could earn.
Lyft's promotion of 'earnings guarantees' failed to clarify that these were not bonuses, misleading drivers into believing they could earn guaranteed pay.
Many drivers were not aware that the reported earnings figures included tips, leading to unrealistic expectations about their actual take-home pay.
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