Uber will shell out $20M to settle claims it misled drivers over wages

By Trevor Mogg Published January 20, 2017

Uber has agreed to pay $20 million over claims made by the Federal Trade Commission (FTC) that it recruited drivers with false information about how much they could earn in the job.

The FTC alleged that Uber claimed on its website that the annual median income of Uber drivers in New York City exceeded $90,000, but the consumer protection agency insisted the figure was instead $61,000. In another city, this time San Francisco, Uber put earnings at more than $74,000, while the FTC claimed a more accurate figure was $53,000.

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In reality, less than 10 percent of drivers in the two cities earned the kind of money that Uber claimed, the FTC said.

The agency also alleged that the ride-hailing giant exaggerated the potential hourly rate in job listings in a bid to lure new drivers.

But that wasn’t all that the FTC had to say about Uber’s business practices, claiming it also gave erroneous information to drivers regarding the financing or leasing of cars.

For example, Uber told drivers they could “own a car for as little as $20/day” ($140/week) or lease a car with “payments as low as $17 per day” ($119/week), and “starting at $119/week.” But the FTC alleged that from at least late 2013 through April 2015, the figures were more likely to be around $160 and $200, respectively.

Uber also claimed its drivers could receive leases with unlimited mileage through its program, but in reality the leases came with mileage limits, the FTC alleged.

Uber has at no time admitted to, or denied, the FTC’s allegations, but has promised not to misrepresent the potential income figures for drivers, and to ensure its terms and conditions for leasing vehicles are accurate.

“Many consumers sign up to drive for Uber, but they shouldn’t be taken for a ride about their earnings potential or the cost of financing a car through Uber,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said in a release. “This settlement will put millions of dollars back in Uber drivers’ pockets.”

Indeed, the $20 million will be used to provide refunds to affected drivers across the U.S., the FTC confirmed.

Responding to Wednesday’s developments, Uber said in a statement that it was “pleased to have reached an agreement with the FTC,” adding, “We’ve made many improvements to the driver experience over the last year and will continue to focus on ensuring that Uber is the best option for anyone looking to earn money on their own schedule.”

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Contributing Editor

Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…

Cars

Tesla, Warner Bros. dodge some claims in ‘Blade Runner 2049’ lawsuit, copyright battle continues

Tesla Cybercab at night

Tesla and Warner Bros. scored a partial legal victory as a federal judge dismissed several claims in a lawsuit filed by Alcon Entertainment, a production company behind the 2017 sci-fi movie Blade Runner 2049, Reuters reports.
The lawsuit accused the two companies of using imagery from the film to promote Tesla’s autonomous Cybercab vehicle at an event hosted by Tesla CEO Elon Musk at Warner Bros. Discovery (WBD) Studios in Hollywood in October of last year.
U.S. District Judge George Wu indicated he was inclined to dismiss Alcon’s allegations that Tesla and Warner Bros. violated trademark law, according to Reuters. Specifically, the judge said Musk only referenced the original Blade Runner movie at the event, and noted that Tesla and Alcon are not competitors.
"Tesla and Musk are looking to sell cars," Reuters quoted Wu as saying. "Plaintiff is plainly not in that line of business."
Wu also dismissed most of Alcon's claims against Warner Bros., the distributor of the Blade Runner franchise.
However, the judge allowed Alcon to continue its copyright infringement claims against Tesla for its alleged use of AI-generated images mimicking scenes from Blade Runner 2049 without permission.
Alcan says that just hours before the Cybercab event, it had turned down a request from Tesla and WBD to use “an icononic still image” from the movie.
In the lawsuit, Alcon explained its decision by saying that “any prudent brand considering any Tesla partnership has to take Musk’s massively amplified, highly politicized, capricious and arbitrary behavior, which sometimes veers into hate speech, into account.”
Alcon further said it did not want Blade Runner 2049 “to be affiliated with Musk, Tesla, or any Musk company, for all of these reasons.”
But according to Alcon, Tesla went ahead with feeding images from Blade Runner 2049 into an AI image generator to yield a still image that appeared on screen for 10 seconds during the Cybercab event. With the image featured in the background, Musk directly referenced Blade Runner.
Alcon also said that Musk’s reference to Blade Runner 2049 was not a coincidence as the movie features a “strikingly designed, artificially intelligent, fully autonomous car.”

Cars

Audi halts vehicle deliveries to the U.S. as it mulls impact of tariffs

2021 Audi Q5

If you’d been thinking of buying an Audi, now might be the time. The German brand, owned by the Volkswagen Group, has announced it would halt shipments to the U.S. in the wake of President Donald Trump’s 25% tariffs on all imported vehicles.
Audi is currently holding cars that arrived after the tariffs took effect, on April 3, in U.S. ports. But it still has around 37,000 vehicles in its U.S. inventory, which should be able to meet demand for about two months, according to Reuters.
Automakers on average hold enough cars to meet U.S. demand for about three months, according to Cox Automotive.
Audi should be particularly affected by the tariffs: The Q5, its best-selling model in the U.S., is produced in Mexico, while other models, such as the A3, A4, and A6 are produced in Germany.
Holding shipments is obviously a temporary measure to buy time for Audi and parent company Volkswagen. If tariffs stay in place, vehicle prices would likely have to go up accordingly, unless some production is shifted to the U.S. Volkswagen already has a plant in Chattanooga, Tennessee, and is planning a new plant in South Carolina. That latter plant, however, isn’t expected to be operational until 2027 and is currently dedicated to building electric vehicles for VW’s Scout Motors brand.
Other global automakers have also taken drastic measures in response to Trump’s tariffs. Jaguar Land Rover on April 5 said it is pausing shipments of its its UK-made cars to the United States this month. The British sports-luxury vehicle maker noted that the U.S. market accounts for nearly a quarter of its global sales, led by the likes of Range Rover Sports, Defenders, and Jaguar F-PACE.
And on April 3, Nissan, the biggest Japanese vehicle exporter to the United States, announced it will stop taking new U.S. orders for two Mexican-built Infiniti SUVs, the QX50 and QX55.

Cars

Waymo faces questions about its use of onboard cameras for AI training, ads targeting

Two people exit a Waymo taxi.

In an iconic scene from the 2002 sci-fi film Minority Report, on-the-run Agent John Anderton, played by Tom Cruise, struggles to walk through a mall as he’s targeted by a multitude of personalized ads from the likes of Lexus, Guinness and American Express, everytime hidden detectors identify his eyes.
It was clearly meant as a warning about a not-so-desirable dystopian future.
Yet, 23 years later that future is at least partlially here in the online world and threatens to spread to other areas of daily life which are increasingly ‘connected’, such as the inside of cars. And the new testing grounds, according to online security researcher Jane Manchun Wong, might very well be automated-driving vehicles, such as Waymo’s robotaxis.
On X, Wong unveiled an unreleased version of Waymo’s privacy policy that suggests the California-based company is preparing to use data from its robotaxis, including interior cameras, to train generative AI models and to offer targetted ads.
“Waymo may share data to improve and analyze its functionality and to tailor products, services, ads, and offers to your interests,” the Waymo’s unreleased privacy statement reads. “You can opt out of sharing your information with third parties, unless it’s necessary to the functioning of the service.”
Asked for comments about the unreleased app update, Waymo told The Verge that it contained “placeholder text that doesn’t accurately reflect the feature’s purpose”.
Waymo’s AI-models “are not designed to use this data to identify individual people, and there are no plans to use this data for targeted ads,” spokesperson Julia Ilina said.
Waymo’s robotaxis, which are operating on the streets of San Francisco, Los Angeles, Phoenix and Austin, do contain onboard cameras that monitor riders. But Ilina says these are mainly used to train AI models for safety, finding lost items, check that in-car rules are followed, and to improve the service.
The new feature is still under development and offers riders an opportunity to opt out of data collection, Ilina says.
But as we all get used to ads targeting based on everything that’s somehow connected to the web, it seems a once-distant vision of the future may be just around the corner.