The FTC has started a crackdown against a gig work firm that offered remote workers financial incentives that were misleading.
Arise Virtual Solutions was highlighted for all the wrong reasons including how workers were promised hourly wages comprising $18 per hour but in reality, they were paid only $12 and also forced to jet out additional fees to the organization.
The unfair treatment against the company’s workers raised serious concerns leading to an investigation into the firm’s workings which is renowned for offering remote work based on a contract means of employment.
The company that’s based in Florida also forced its own employees to spend hundreds to purchase assets including furniture and equipment to be used for work basis as well as training and the issuance of background checks, all at the expense of the worker.
A lot of the defendants were highlighted as being people of color including Blacks, Latinos, and multiracial, and nearly 90% of the workforce were outlined as females.
The investigation gave rise to a settlement where the FTC forced the company to a payout comprising $7 million which would be given to those impacted by this outrageous and unfair behavior from employers.
On an average basis, close to 37% of clients who enrolled in the company’s training ended up completing it while those who left were unable to attain any funds back on what they spent. Additionally, the FTC mentioned how many who passed through training had to pay $40 per month as a mandatory fee.
Despite reaching a financial settlement, Arise has yet to admit its wrongdoing. It released a new blog post on this front where it added how it fully disagreed with the allegations put up against it, adding how the facts claimed couldn’t be characterized.
‘Such a settlement doesn’t mean we are at fault’, the company explained and also went on to detail how there was a lack of evidence for the liability made against them.
Still, the company says it wishes to carry on with business practices as usual and stands true to its way of carrying out dealings. They also explained how finding a solution to this matter was pivotal for them to move forward and that is why they agreed to a settlement.
From what we can confirm, this settlement bans Arise from enjoining in earning claims when there is no factual evidence to support it.
Image: DIW-Aigen
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