FTC Policy Statement: Established Consumer Protection and Competition Principles Apply to Gig Companies

Whether you’re a gig worker, work for a business that relies on gig workers, or receive their labor benefits, the Federal Trade Commission just released a policy statement on the gig economy that’s worth your attention.

There’s no denying that the gig economy is growing exponentially. A Federal Reserve study estimates that 16% of Americans say they make money through the gig economy, with gig work contributing hundreds of billions of dollars in economic activity annually. Additionally, as a recent FTC staff report noted, many gig workers come from communities of color.

The Federal Trade Commission’s policy statement on enforcement related to gig work begins with the fundamental principle that “American workers deserve a fair, honest, and competitive labor market.” After outlining some of the issues gig workers may face – including deceptive claims about wages and hours, unfair contract terms, and anti-competitive wage fixing and coordination among gig economy companies – the statement clearly states, While gig companies may seem unique, established consumer protection and competition principles still apply to them. Here’s another key takeaway: This principle applies regardless of how companies choose to classify gig workers.

The policy statement identifies some of the areas the FTC aims to address Prevent harm to consumers. You’ll need to read the document to learn the details, but here are three examples: Holding companies accountable for their claims and actions regarding the costs and benefits of gig work; Combating illegal practices and restrictions on gig workers; Regulating unfair competition that harms gig workers Way. As the statement explains, “Protecting these workers from unfair, deceptive and anticompetitive practices is a top priority, and the FTC will use its full authority to do this. “

Workers who have been harmed by questionable conduct can share their experiences with the FTC. If workers believe their labor rights have been violated, they can call the National Labor Relations Board (1-844-762-6572) or file a complaint on the NLRB website.