Hester 1
Taj Hester
Dobson Mona
English 20
December 7, 2018
Trusting Monopolies
As of 2016 there are over 2.1 billion smartphone users and that number is set to rise to
2.5 billion in 2019. (Statista) Technology is constantly evolving in order to improve our daily
lives, make tasks, like transportation, simpler and more efficient. Transportation and delivery
services such as Uber or Lyft have become a commodity that has integrated into our society and
is considered a standard service. Uber works by connecting riders/consumers with drivers along
with other delivery services through their mobile app. In return for using these services Uber
charges a fee and profit financially. We put our trust into companies such as Uber but as
consumers we cannot forget that company’s first objective is profiting where possible.
Companies are not always truthful or transparent when it comes to advertisements and Uber was
no different. In 2014 the FTC began investigating Uber for falsifying driver wages and loan
rates. The Federal Trade Commission or FTC is an independent government agency that
oversees and enforces fair trade acts of commerce known as the FTC Act. It is the FTC’s job to
investigate any violations of the FTC Act and if necessary help secure equitable relief for
consumers affected. Uber intentionally manipulated advertised wages and loan rates in order to
deceive and take advantage of consumers joining their company under “employment” as a driver.
By doing so Uber created drivers that earned the company millions of dollars and left drivers
with millions in damages.
Hester 2
The investigation into Uber’s manipulative practices began with Uber’s manipulative
advertisements on various media platforms. The FTC complaint filed with the District court
overviews the situation. The document goes into the manipulated wages and claims that were
advertised on the various platforms. The FTC inferred Uber intentionally falsely advertised
drivers fares in order to cut costs and in order to gain more drivers/employees. “The defendant
participated in deceptive acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. §
45, in connection with its false, misleading, or unsubstantiated claims regarding driver earnings
and its Vehicle Program”(FTC) Uber’s advertisement and marketing of its services claimed that
drivers are likely to earn substantial income including specific hourly wages.(FTC) Wages
advertised online were inflated to deceive consumers which led to an increase in the consumers
