A lawyer for Uber, Andrew Smith, a Covington & Burling partner in Washington, also was not immediately reached for comment about the settlement. Uber did not admit or deny wrongdoing.

"We're pleased to have reached an agreement with the FTC," 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."

FTC Commissioner Maureen Ohlhausen dissented from the vote to authorize the complaint and settlement. "While I understand that companies have many considerations when they reach a settlement, I feel it is my duty to oppose settlements detached from the consumer harm alleged," Ohlhausen said in a statement. "The $20 million settlement entered today far exceeds the best estimate of actual consumer harm and I cannot support it."

Uber has faced a number of legal challenges in recent years over allegations the company has misled drivers and customers. The company agreed in April to pay up to $25 million to settle lawsuits brought by the district attorneys of San Francisco and Los Angeles alleging Uber misled consumers with claims that it provided the "safest rides on the road" and conducted "industry leading background checks." Uber, which does not fingerprint its drivers, agreed to change the way it described its driver reviews and safety practices.

Philadelphia taxi companies also sued Uber for telling its customers that cabs' insurance coverage had been terminated in late October 2014, a claim a federal judge called "literally false."

Uber drivers have long complained about the company's compensation claims. "I thought 80 percent of the fares was a very good deal, but in reality Uber was making more money than I was," one driver told The Washington Post in 2014.

In its complaint, the FTC accused Uber of posting misleading advertisements on various sites, including Craigslist and on the company's website. Uber's site, between May 2014 to August 2015, featured a post from chief executive Travis Kalanick claiming that the median income for drivers tops $90,000 in New York and $74,000 in San Francisco. That statement was reported by several media outlets, including Businessinsider.com, CNBC.com, Forbes.com and Slate.com, the FTC said.

According to the FTC's complaint, Uber revised the post in August 2015 to state,"[t]he potential income a driver on UberX can make in a year is more than $90,000 in New York and more than $74,000 in San Francisco." Less than 10 percent of drivers in New York and San Francisco have earned that stated income, the FTC said.

"Uber has publicized high annual and hourly earnings to entice consumers to become Uber drivers," the FTC said. "However, once drivers have begun to receive their paychecks, drivers have discovered their actual earnings were substantially less than Uber has claimed."

The complaint also alleges that Uber's "vehicle solutions program," which connects prospective drivers with auto companies to help them buy or lease a car, has also entailed misleading advertising and left consumers with "worse than industry average rates."