FTC says gig company Arise misled consumers about how much money they could make on its platform

NEW YORK (AP) — The Federal Trade Commission is taking action against a gig work company, saying it misled people about the money they could make on its platform.

Arise Virtual Solutions reached a settlement with the FTC, agreeing to pay $7 million to workers the FTC says were harmed by the company’s misconduct. Arise is a technology platform that connects major companies with customer service agents who freelance on its platform.

“Arise lured in workers with false promises about what they could earn while requiring them to pay out-of-pocket for essential equipment, training, and other expenses,” FTC Chairwoman Lina Khan said in a statement Tuesday. “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.”

Arise lists Carnival Cruise Line, Dick’s Sporting Goods and Intuit Turbotax as clients.

“While we vehemently disagree with the FTC’s allegations and characterization of the facts, we have reached this agreement — which is not an admission or finding of liability or wrongdoing — so we can keep moving our business forward without the ongoing distraction and cost of litigation,” Arise said in a statement. “We stand by our mission of helping entrepreneurs find advancement in an environment that lets them build their businesses around flexible work serving as independent contractors providing services to world-class companies.”

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