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"
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$106.8M
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