FTC Begins Compensating Consumers After Settlement With Gig Work Platform Arise

The Federal Trade Commission (FTC) has begun sending over $6.7 million to consumers as part of its settlement with gig work company Arise Virtual Solutions.

The settlement resolved the FTC’s allegations that Arise violated the FTC Act and the Business Opportunity Rule by making deceptive claims about the money workers could earn on its platform, the regulator said in a Tuesday (Aug. 26) press release.

The FTC is sending checks to 98,254 affected consumers, according to the release.

The regulator announced its action against Arise as well as a proposed settlement in a July 2, 2024, press release.

The FTC alleged that the company regularly advertised that its gig work platform provided access to jobs paying up to $18 an hour, even though its internal documents showed that the average pay for jobs on the platform was $12 an hour, according to the release.

The regulator also alleged that Arise required the consumers who joined its platform to purchase computers and headsets, including some purchased from and financed by Arise; required consumers to pay as much as $250 for training programs; charged workers nearly $40 a month in mandatory fees; and failed to provide documents and disclosures required by the Business Opportunity Rule, per the release.

“Operating in the ‘gig’ economy is no license for evading the law, and the FTC will continue using all its tools to protect Americans from unlawful business practice,” Lina M. Khan, who was chair of the FTC at the time, said in the July 2024 press release.

According to the Tuesday press release, the settlement was detailed in a July 2024 order and requires Arise to pay $7 million to compensate affected consumers and bars the company from making false or misleading claims.

Arise said in a July 2, 2024, press release that it entered into the settlement agreement to resolve the investigation after cooperating with the FTC. The company added that it disagrees with the FTC’s allegations, did not admit to wrongdoing and was not found liable.

“While we are already effectively in compliance with the key aspects of the order that was made public today, we are supportive of doing more to improve our business practices in the future,” Arise said in the July release. “Looking ahead, we believe these actions best position us to serve all our stakeholders — adding clarity and certainty to how Arise can help entrepreneurs find professional success and companies find world-class customer service solutions.”