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In this photo taken Tuesday, Dec. 13, 2016, an Uber driverless car heads out for a test drive in San Francisco.   The ride-hailing company is refusing to obey demands by the state's Department of Motor Vehicles that it stop picking up San Francisco passengers in specially equipped Volvo SUVs. Hours after Uber launched the self-driving service Wednesday, Dec. 14,  the DMV warned it was illegal because the cars did not have a special permit.  (AP Photo/Eric Risberg)

Uber will pay $20 million for misleading drivers about how much they would make


Uber has been ordered to pay $20 million to settle allegations that it duped people to become drivers by misleading them about how much they could earn. The settlement, announced Thursday, shows most Uber drivers were making far less than it told drivers online, and drivers ended up paying far more to lease cars than Uber claimed.

"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," said Jessica Rich, director of FTC's the Bureau of Consumer Protection.

FILE - In this Dec. 16, 2014, file photo a man leaves the headquarters of Uber in San Francisco. Uber is taking its ride-hailing app down a new road in an effort to make it smarter, simpler and more fun to use. The redesigned app also will seek to mine personal information stored on smartphones in a change that could raise privacy concerns, even though it will be up to individual users to let Uber peer into their calendars and address books.(AP Photo/Eric Risberg, File)

In one statement on Uber's site from May 2015 through August 2015, CEO Travis Kalanick boasted that the mid-range income of New York City drivers was more than $90,000. But the FTC found the actual income was just $61,000.

Uber said it was pleased to put the dispute behind it, saying it has "made many improvements to the driver experience" over the past year. 

Court documents didn't make clear how much drivers could expect to make on the payout.

The Associated Press contributed to this report. 

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