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US FTC will crack down on companies taking advantage of gig workers

According to the latest report, the Federal Trade Commission (FTC) announced plans to crack down on the exploitation of gig workers, saying that no matter what category of workers they belong to, they are entitled to protection.

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The FTC adopted a policy statement detailing the issues facing gig workers, including deceptive claims about their wages and hours, unfair contract terms, and more, and details the steps the FTC plans to take.

While the FTC did not name any of the companies, the message was clear that it plans to let major gig companies like Uber, Lyft, DoorDash, and Instacart tell potential workers how to treat online bookings using their platforms, the report said.

US FTC gig workersMoreover, drivers and delivery personnel are responsible for the commitments made. Gig companies previously considered their workers to be independent contractors, and have fought to keep this practice.

“Technological advances and novel business models are no license to commit unfair, deceptive, or anticompetitive practices,” said Elizabeth Wilkins, Director of the FTC’s Office of Policy Planning. “We will use all our tools to protect gig workers and promote fair and competitive market practices in the gig economy.”

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