WASHINGTON (Reuters) - Ride-hailing company Uber Technologies Inc has agreed to pay $20 million to settle claims by the U.S. government that it exaggerated prospective earnings in seeking to recruit drivers and downplayed the costs of buying or leasing a car, documents filed with a federal court on Thursday showed. For instance, in a statement published on Uber's website from May 2015 through August 2015, Chief Executive Travis Kalanick boasted that the mid-range annual incomes of the service's New York city drivers exceeded $90,000 and the mid-range annual earnings of its San Francisco drivers topped $74,000, according to the FTC. Uber’s communications with at least one auto company have acknowledged payment terms and conditions that are inconsistent with Uber’s promises to Drivers.”

The FTC also claims that many drivers who entered into the Vehicle Solutions Program thinking they would get a good deal actually ended up with interest rates that were likely higher than they would have received elsewhere. “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 wrote in a news release. The FTC points to previous statements by Uber’s CEO that drivers for UberX — the standard level of car service for many Uber users — earned a median income of “more than $90,000/year/driver in New York and more than $74,000/year/driver in San Francisco.” This statement was later revised to say that these figures were “potential” earnings drivers could make in their respective cities. “This settlement will put millions of dollars back in Uber drivers’ pockets.”

Uber said in a statement: "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."
Uber agrees to pay $20 million to settle U.S. Federal Trade Commission claims the company exaggerated prospective earnings and downplayed the costs of buying/leasing a car when recruiting new drivers.