On Sept. 15, the U.S. Federal Trade Commission issued a policy statement, titled “FTC Policy Statement on Enforcement Related to Gig Work,” highlighting the agency’s increased attention to and scrutiny of “gig” companies that utilize workers for on-demand work. The statement is not binding law and thus does not confer specific legal rights on the FTC or any person, but it indicates that one of the FTC’s enforcement priorities in the immediate future will be to closely scrutinize business practices of gig companies to ensure they comply with applicable consumer protection laws.

The FTC’s mission is broadly to protect individuals from unfair and deceptive business practices. Although the FTC does not have direct jurisdiction over misclassification claims—an issue within the purview of the U.S. Department of Labor—the FTC commented that misclassified workers are often promised misleading or unsupported claims about their pay, leaving workers in financial difficulty. Gig companies should be on notice that the FTC will closely monitor wrongful misclassification and other deceptive behavior towards gig workers and may refer such conduct to other agencies for enforcement.