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FTC Arise Case: $7 Million Judgment and Refunds for Gig Workers

The FTC said fewer than 1% of Arise agents earned the advertised $18 hourly maximum in base pay. Here’s what the agency alleged and how its 2025 refund distribution worked.
From TheFinanceBase Team3 min to read
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The Federal Trade Commission (FTC) took action against Arise Virtual Solutions Inc. over allegations that its “up to $18 an hour” pitch misled people about what they could typically earn from remote customer-service work. The FTC says it sent more than $6.7 million in refunds to eligible former workers in August 2025. The advertised $18 was a maximum, not a typical wage: the agency said fewer than 1% of agents earned that much in base pay and most earned around $12.

What the FTC alleged about Arise’s earnings claims

Arise Virtual Solutions Inc., also doing business as Arise, marketed a platform through which people could provide remote customer-service work. In its July 2024 complaint, the FTC alleged that Arise’s advertising emphasized earnings of “up to $18/hour” while giving consumers a misleading impression of what most participants could earn.

FTC Chair Lina M. Khan’s July 1, 2024 statement summarized the allegation this way: “In reality, the pay was nearly always below the levels Arise advertised.” The FTC’s consumer guidance said fewer than 1% of agents earned $18 an hour in base pay and that most earned around $12. Those are figures attributed to the FTC, not a guarantee of what an individual worker would earn.

The distinction matters: “up to” describes a ceiling, not the expected result. And a base-pay figure does not by itself show what a worker keeps after expenses or how much time they must spend on unpaid setup and training.

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Costs and unpaid time affected the opportunity

The FTC Chair’s statement said the complaint alleged that people signing up paid hundreds of dollars out of pocket for equipment, mandatory certification courses, background checks, and platform usage fees. The FTC also warned that costs and time could make the net opportunity worse than an hourly headline suggested.

The cited FTC materials describe equipment generically; they do not establish that Arise required any particular headset, computer, or other specific model. The relevant consumer question is what the company requires, what it costs, whether charges recur, and whether training or setup time is paid.

Case timeline and the $7 million judgment

Date What happened
July 2, 2024 The FTC case timeline lists a complaint seeking a permanent injunction, monetary relief, and other relief.
July 8, 2024 The case timeline lists a stipulated order for a permanent injunction, monetary judgment, and other relief. The FTC Chair described the matter as a settlement and discussed the conduct as allegations.
August 26, 2025 The FTC case page reported that the agency had sent more than $6.7 million to affected consumers. The page continued to label the case status “Pending” while listing the order and refund action.

The $7 million headline refers to the settlement’s monetary judgment, not the amount each person earned or a wage rate. The later refund announcement reported the amount actually sent in checks.

Who received refunds and how much was sent

In August 2025, the FTC said it sent 98,254 checks totaling more than $6.7 million to eligible people who worked for Arise between January 1, 2019 and December 31, 2023. The distribution figure is a total sent to eligible consumers; it does not indicate an individual recipient’s typical award.

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The FTC’s 2025 announcement told recipients to cash their checks within 90 days. That was the instruction attached to the 2025 distribution, not confirmation of a deadline that remains active today. For current case or payment information, use the FTC’s official case and refund pages.

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How to assess a paid gig opportunity

The Arise allegations illustrate why an advertised maximum is not enough to judge a work opportunity. Before paying to join or investing substantial time, ask for the terms in writing and check:

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  • Typical earnings: Ask what most workers earn, not just the highest advertised amount, and how the company calculated the figure.
  • Gross versus net pay: List all required startup and recurring costs, then estimate what remains after them.
  • Paid and unpaid time: Clarify whether training, certification, onboarding, and waiting time are compensated.
  • Fees and conditions: Identify mandatory charges, when they are due, whether they recur, and what happens if you stop working.
  • Independent accounts: The FTC advises researching a company, speaking with current and former workers about earnings and expenses, questioning large income promises, and treating testimonials skeptically.

These checks are general consumer guidance from the FTC; they do not guarantee that a particular platform or job is safe.

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