Gig Companies Can’t Take Everyone for a Ride

As gig economy companies work to woo drivers back to their platforms, they have been making some expensive promises. Breaking them could prove even more costly.

On Tuesday, the Federal Trade Commission said it sent a notice of penalty offenses to more than 1,100 companies, warning that those that mislead people about potential earnings could incur fines that can exceed $43,000 per offense. For gig economy companies, this includes “pitching a steady second income” for drivers that may prove to be less than advertised, the agency said. Uber Technologies (as well as Uber Eats), DoorDash , Instacart and Lyft all received the notice.