Consumer Catch-up: Caviar settlement, FTC shuts down business coaching scheme, side hustles boosting retirement

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Delivery service Caviar will pay more than $2 million in a class action settlement, plus employees are using side hustles to boost retirement. The consumer news you need to know for Monday, June 11, 2018. (Shutterstock)

Caviar agrees to class action settlement

Food delivery service Caviar has agreed to pay $2.2 million in a class action lawsuit settlement. The lawsuit claims Caviar took money customers paid to tip their delivery drivers, but never gave that money to the drivers.

The company, owned by San Francisco-based Square Inc., sent out a notice to customers who may have used the service between January 20, 2012 and August 31, 2015. Customers will receive a credit of $15.28 to be used on another order via Caviar.

A judge still has to approve the settlement for the credit to be activated. That approval hearing is planned for September 21, 2018.

Caviar does not admit any wrongdoing, but says it will settle to avoid taking the lawsuit to court.

FTC shuts down major online business coaching scheme

The Federal Trade Commission filed charges against three people and nine businesses accused of scamming more than $125 million from customers in a business coaching program called My Online Business Education, or MOBE.

The FTC says the organization targeted customers in the U.S., including service members, veterans, and seniors. It says the MOBE program claimed it could help people start their own online business, starting with a $49 entry fee.

The complaint says people who bought into the program were then bombarded with sales pitches to spend thousands in membership packages. Some people spent more than $20,000 for the memberships.

Workers turning to side hustles for retirement funds

Some older workers are hoping extra money from a side hustle will help fund their retirement. That's according to a new study by online investment company Betterment.

The study finds 67 percent of people with a side job are using it mostly for financial reasons - including saving up for a big purchase, paying off debt, or setting aside for retirement.

Betterment says the older the worker is, the more likely they are to be using the extra money for retirement. For workers 55 and older, 76 percent said that is where the money will go.

Even after retiring, many workers say they will keep up that side gig. They don't trust that Social Security will still be around to provide help during retirement.

Click here for a look at more stories by Michael Finney and 7 On Your Side.

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business7 On Your Sideu.s. & worldconsumerclass action lawsuittippingFTCbusinessjobsretirement
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