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Lyft could pay about $3,000 for failing to disclose that it paid for some ads in its $48 million Prop 22 campaign (LYFT)

Published by Business Insider on Wed, 10 Feb 2021


<p><img src="https://static2.businessinsider.com/image/5f905734212113001873fe86-1815/GettyImages-1228964599.jpg" border="0" alt="lyft driver proposition 22" data-mce-source="Al Seib/Los Angeles Times/Getty Images" data-mce-caption="Latasha Houston, a Lyft driver of three years, attends a demonstration urging voters to vote no on Prop 22 in Los Angeles on Oct. 8, 2020."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Lyft is being threatened with a $3,371 fine for not disclosing that it paid for some ads apart of its Proposition 22 campaign in California.</p><p>The state's Fair Political Practices Commission is proposing that the rideshare company be fined $1,499 for email ads that didn't include a note indicating they were paid for by Lyft, $936 for robocalls and text ads that were also missing such a message, and $936 for robocalls and text ads that bore the wrong name, according to a report from <a href="https://www.vice.com/en/article/v7mj5a/lyft-is-getting-a-slap-on-the-wrist-for-misleading-prop-22-ads">Vice.</a></p><p>Spokespeople for Lyft and the FPPC did not immediately respond to Insider's request for comment.</p><p>If Lyft is fined the commission's proposed amount, it's a drop in the bucket compared to the $48 million that the company poured into the Prop 22 campaign. <a href="https://www.businessinsider.com/what-is-proposition-22-california-gig-workers-uber-lyft-2020-8">Lyft, Uber, DoorDash, Instacart, and Postmates collectively spent over $200 million</a> to push the legislation that would allow the gig-based companies to continue paying and classifying its drivers as contractors, not full-time employees. California voters approved Prop 22 in the November election.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/proposition-22-faq-impact-uber-lyft-instacart-doordash-2020-11'r=kc-sub">Here's what Prop 22's approval means for companies like Uber, Lyft, Instacart, DoorDash, and their workers</a></em></p><p>The group of companies first crafted the proposition after California passed <a href="https://www.businessinsider.com/california-assembly-bill-5-companies-contractors-freelancers-navigate-law-guide">Assembly Bill 5</a> in late 2019, which required companies to classify all of their workers as employees. The proposition was meant to exempt them from the new gig law, and <a href="https://www.businessinsider.com/uber-lyft-no-shutdown-california-emergency-stay-court-drivers-contractors-2020-8">the companies did not adhere to AB5</a> up to the point that Prop 22 passed in November.</p><p>Instead of all workers having full-time employee status, Prop 22 requires gig companies to provide an alternative set of benefits to cover expenses, including healthcare subsidies.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/how-freelancers-contractors-remain-independent-navigate-california-ab5'r=kc-sub">California's Assembly Bill 5 doesn't just impact Uber drivers and delivery workers. Here's how freelancers and contractors can navigate the law and remain independent.</a></em></p><p>AB5 impacted other industries like media and trucking, and workers in those sectors <a href="https://www.hollywoodreporter.com/news/ab-5-author-proposes-legislation-easing-impact-freelance-journalists-1279058">also pushed back on the law.</a> Even AB5 creator, <a href="https://www.cnet.com/features/uber-lyfts-fight-over-gig-worker-status-as-campaign-against-labor-activists-mounts/">California Assemblywoman Lorena Gonzalez, has acknowledged</a> that the law was not perfect when it passed in September 2019.</p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/prop-22-california-states-independent-flexibility-freelance-uber-lyft-biden-2021-1" >California voters rejected restrictions on independent work, and your states should, too</a></strong></p><p><a href="https://www.businessinsider.com/lyft-pay-fine-prop-22-ads-california-2020-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/coronavirus-myths-debunked-wuhan-china-2020-2">Epidemiologists debunk 13 coronavirus myths</a></p>
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