The Federal Trade Commission has distributed more than $6.7 million in refunds to 98,254 consumers deceived by Arise Virtual Solutions’ claims about earnings potential on its gig work platform. The payments, stemming from a $7 million settlement finalized in July 2024, address allegations that the company violated federal laws by overstating income for remote customer service roles. Consumers receiving checks must cash them within 90 days, and the FTC emphasizes it never requires payment or account information for refunds.
In its complaint filed July 2, 2024, in the U.S. District Court for the Southern District of Florida, the FTC charged Arise with targeting individuals seeking flexible work-from-home options, including stay-at-home mothers and veterans, through advertisements promising jobs paying up to $18 per hour. Internal company data from 2019 to 2022 showed the average hourly pay was $12, with 99.9% of participants earning less than the advertised rate. The agency alleged these claims violated the FTC Act by being deceptive and the Business Opportunity Rule by failing to provide required disclosures on earnings substantiation. Arise continued such promotions even after receiving a 2022 FTC notice warning against unsubstantiated money-making claims.
The settlement order, entered July 8, 2024, requires Arise to pay $7 million for consumer redress, with the bulk funding the refunds now being mailed. The company is permanently barred from making earnings claims without written substantiation that they represent typical results for similarly situated consumers. Arise must also avoid any false or misleading statements and comply with Business Opportunity Rule disclosure mandates, including enhanced record-keeping. In a statement, Arise affirmed its commitment to transparency and supporting entrepreneurs, noting it cooperated with the investigation without admitting wrongdoing.
Refunds are administered by Epiq Systems, which consumers can contact at 888-998-8059 for questions. Eligibility covers those who joined the platform between January 1, 2019, and December 31, 2023, based on Arise records; no claims needed to be filed. The FTC’s online dashboards provide state-by-state refund breakdowns, though specific figures for Maryland are not detailed in this case. Nationwide, FTC actions in 2024 returned over $339 million to consumers.
This case highlights ongoing scrutiny of gig economy platforms, where flexible work appeals but earnings often fall short of promises. Arise, based in Florida, connects independent contractors with customer service gigs for major brands, but participants faced out-of-pocket costs for equipment and training not factored into advertised pay. Separately, Arise settled misclassification claims with the District of Columbia for $3 million in March 2024 and with Florida workers for $13 million in October 2024, addressing denials of minimum wage and overtime. The U.S. Department of Labor pursued parallel litigation against Arise for similar worker classification issues.
In Maryland, the gig economy has expanded as residents seek supplemental income amid limited local employment options, particularly in Southern Maryland counties like St. Mary’s, Calvert and Charles. With proximity to Washington, D.C., many opt for remote roles to avoid long commutes via routes like U.S. 301 or Maryland Route 5. Young gig workers in the state often use platforms to build income proof for loans or financial stability. State workforce programs promote flexible opportunities, but the Arise case underscores the need to verify claims through official disclosures.
The FTC advises reporting suspected fraud at ReportFraud.ftc.gov and warns against schemes demanding upfront payments. This distribution reflects heightened FTC enforcement in the gig sector, ensuring platforms provide accurate information to participants navigating economic pressures.
