The Federal Trade Commission (FTC) has initiated the distribution of over $6.7 million in refunds to consumers misled by Arise Virtual Solutions, a company operating in the gig economy. This action follows allegations that Arise made deceptive claims regarding potential earnings for its customer service positions, which attracted many individuals seeking flexible work-from-home opportunities.
In a complaint filed in July 2024, the FTC stated that Arise’s advertisements targeted individuals—particularly stay-at-home parents and those looking to supplement their income—by promoting jobs that supposedly offered pay of “up to $18 per hour.” However, many consumers reported that their actual earnings fell far below these promised amounts, leading to disappointment and financial strain.
Allegations Against Arise Virtual Solutions
The FTC’s complaint outlined two key violations by Arise. First, it accused the company of infringing upon the FTC Act by disseminating false and misleading representations about job earnings. Second, Arise was charged with breaching the Business Opportunity Rule by failing to provide essential information regarding the basis for its income claims.
The FTC emphasized that such misleading advertising created unrealistic expectations for many consumers who were eager to earn supplemental income. The agency’s findings led to a settlement requiring Arise to pay $7 million to compensate those affected by its misleading practices.
Settlement Terms and Refund Distribution
Under the terms of the settlement, Arise has also committed to significant changes in its business practices. The company must cease making unsubstantiated earnings claims and is required to provide credible evidence to support any future income promises. Furthermore, Arise is prohibited from making false or misleading statements about potential job opportunities on its platform.
The FTC will distribute the $6.7 million in refunds to approximately 98,254 consumers who signed up with Arise under false pretenses. Each recipient will receive a check, and they are advised to cash these checks within 90 days of receipt, as noted on the payment documents.
Consumers with inquiries about the refund process can reach out to the refund administrator, Epiq Systems, at 888-998-8059. This development highlights the FTC’s ongoing commitment to protecting consumers from deceptive business practices in the evolving landscape of gig work.
