FTC acts against a gig work company for misleading workers about how much they can earn.

The FTC is taking action against Arise, a gig work company, for misleading workers about their potential earnings. Arise agreed to pay $7 million to workers who were harmed by their false promises.

Arise advertised jobs paying up to $18 per hour, but in reality, most workers earned much less. Workers also had to spend their own money on equipment and training, which many did not recoup.

Arise claims it did nothing wrong but agreed to the settlement to avoid further legal battles. Lawyers for workers hope this action will lead to better treatment of gig workers in the future.

The FTC also accused Arise of violating the Business Opportunity Rule, which requires companies to be transparent about potential earnings. This is the first time the FTC has used this rule against a gig work platform.

This decision could have implications for other gig companies, who may now need to provide more detailed disclosures to workers. Experts believe this action signals increased scrutiny of gig work platforms and their practices.