The Federal Trade Commission has agreed to a $2.1 million settlement with a rideshare company over advertising practices that the Commission deemed “misleading or deceptive,” the FTC announced October 25. Specifically, the FTC alleged that some of the company’s advertisements to recruit drivers featured unrealistic earnings potential and others included misleading promotions language.
The settlement serves as a reminder that—in addition to traditional workplace regulators such as the Equal Employment Opportunity Commission, the Department of Labor’s Office of Federal Contract Compliance Programs, and state and local fair employment practices agencies—the FTC may scrutinize claims in job postings. Furthermore, many employment laws limit protections to employees, but in this case the FTC pursued claims involving contractors.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.