Consumers Affected
62,893
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
The FTC is sending checks totaling more than $2.7 million to 62,893 consumers who were charged for eligible fees and fines. Recipients must cash checks within 90 days.
In-house legal teams should review vendor agreements with gig economy platforms and staffing agencies, focusing on clauses related to earnings representations, fee disclosures, and wage deductions. Key areas include: (1) indemnification clauses for deceptive earnings claims, (2) compliance with FTC Act requirements for advertising and marketing, (3) clear disclosure of all fees and penalties, (4) worker classification and wage payment obligations, and (5) audit rights to verify compliance with earnings and fee representations. Customer agreements should also be reviewed for any earnings guarantees or fee structures that could be deemed deceptive.
Entity
Handy Technologies
Industry
Technology"Handy Technologies"
"more than $2.7 million"
"deceptive claims about how much workers on its platform could earn"
"failed to clearly disclose fees and fines that led to millions of dollars being withheld from workers' wages"
"62,893 consumers"
"New York Attorney General"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.