The Federal Trade Commission (FTC) has launched a targeted enforcement campaign against gig work platforms, citing deceptive earnings claims and outlining new eCommerce compliance obligations that companies must meet to avoid sanctions.
In recent months, the FTC reviewed advertising and promotional practices among ride-sharing, delivery, and freelance marketplace apps. Investigators found that several firms overstated potential earnings, misleading both independent contractors and end customers.
New eCommerce Compliance Rules
- Transparent Earnings Disclosures: Platforms must publish clear, substantiated average earnings data, based on verifiable user records.
- Real-Time Pricing Accuracy: Any estimates or “up to” pricing messages must reflect actual, current rates without inflation.
- Clear Promotion Terms: Discounts, referral bonuses, and incentive programs need prominently displayed qualifications, expiration dates, and limitations.
- Data Privacy Safeguards: Enhanced protocols for collecting and storing sensitive contractor and customer information, aligning with FTC privacy guidelines.
Risks and Penalties
Non-compliance can trigger:
1. Civil penalties up to $50,000 per violation.
2. Mandatory corrective advertising.
3. Potential injunctions restricting marketing tactics or business practices.
Next Steps for Gig Work Firms
- Conduct a comprehensive audit of all earnings claims and promotional materials.
- Update website and app interfaces to include transparent, easy-to-find disclosures.
- Train marketing and compliance teams on the FTC’s new guidelines.
- Engage third-party legal counsel to review and certify compliance programs.
By proactively aligning policies with these requirements, gig work companies can mitigate enforcement risk and maintain consumer trust in a rapidly evolving eCommerce environment.
