FTC Accuses Gig Work App Handy of Misleading Ads and Opaque Fees for Workers

Handy Agrees to $2.95 Million settlement Over False Earnings Claims

Popular gig app Handy, which connects customers with cleaners, handymen, and other service providers, has agreed to a $2.95 million settlement with the Federal Trade Commission (FTC) and New York’s Attorney General. The settlement resolves allegations that Handy misled workers about potential earnings and failed to disclose fees clearly.

Inflated Earnings Claims and Hidden Fees

the FTC and New York Attorney General alleged in a complaint that Handy’s advertising inflated earnings and didn’t adequately disclose fees and fines. This resulted in millions of dollars being withheld from workers. “”[Handy] relied on inflated and false earnings claims to lure workers onto its platform,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “It then deducted inadequately disclosed fines and fees from their wages.”

Handy’s advertising promised quick payments, but the complaint alleges these payouts frequently enough required workers to pay fees or take on additional jobs. While the platform advertised hourly rates as high as $45, the FTC states that more than 90% of workers earned less.

Financial Vulnerability of Gig Workers

The lawsuit sheds light on the vulnerabilities faced by many gig workers who rely on platforms like Handy for income. A 2022 survey by the Economic Policy Institute found that gig workers ofen face unpredictable income,lack of benefits,and limited worker protections.

Gig Economy Workers Struggle as Handy Settles Wage Theft Lawsuit

A recent settlement highlights the ongoing challenges faced by gig economy workers. The lawsuit, filed against Handy, a home services platform owned by Angi (formerly Angie’s List), alleged that the company misclassified its workers as autonomous contractors, resulting in wage theft. While Handy agreed to the settlement without admitting fault, the case sheds light on the precarious financial situation of many gig workers.

According to an Institute for Economic Policy study, a startling 14% of gig workers earn less than the federal minimum wage. The financial strain is evident in the fact that one in five gig workers reported experiencing hunger due to insufficient income, and nearly a third struggled to afford their utility bills.

Handy Responds to the Settlement

Handy, while agreeing to the settlement terms, emphasized its commitment to supporting small businesses and maintaining its platform. A spokesperson stated: “Though we were prepared to litigate,we chose to enter into an agreement with these parties to put this matter to rest and get back to putting our 100% focus on supporting our customers: the small businesses who help Americans care for and maintain their homes.”

the company further clarified that the settlement “should in no way be construed as a validation of their allegations.”

Creating Empty Files in the Command Prompt

For those interested in learning more about using the Command Prompt, creating an empty file is a simple task. Here are a few methods:

Method 1: Using the ‘copy’ Command

Open the command Prompt and type:

copy nul file.txt

This will create an empty file named “file.txt” in yoru current directory. To suppress any output to the console, redirect the output to ‘nul’:

copy nul file.txt > nul

Method 2: Using the ‘type’ Command

Alternatively, open the Command Prompt and type:

type nul > file.txt

This will also create an empty file named “file.txt” in your current directory.

Create an Empty file using the Command prompt

Need to quickly create an empty file on your computer? You don’t need any fancy software – the Command Prompt can handle it! This simple tool, built into Windows operating systems, allows for direct interaction with your computer’s file system.In this guide, we’ll explore a straightforward method for creating empty files using the Command Prompt.

The Basic Method

Follow these steps to create an empty file:

1. Open the Command Prompt.You can do this by searching for “cmd” in your start menu.
2. Type the following command, replacing “empty_file.txt” with your desired file name:

cmd
aaa> empty_file.txt

Don’t worry about the “aaa>” part; it’s just placeholder text. The crucial part is the file name you choose. in this example, we’re creating a file called “empty_file.txt.”

Press Enter. Even though the command “aaa” isn’t valid, the Command Prompt will still create your empty file in the current directory.

Important Notes

• Remember to replace “empty_file.txt” with your own desired file name.
• Make sure you’re in the correct directory where you want the file to be created. You can navigate directories using the cd command.

Why create Empty Files?

You might be wondering why anyone would need to create an empty file. It seems almost pointless, right? Surprisingly, empty files have several practical uses:

• Placeholders: Empty files can act as placeholders for files that will be added later. For example, you might create an empty file for a document you’ll work on later, or as a marker in a project.
• Scripting: Programmers often use empty files as part of scripts to trigger specific actions or processes.

Although a simple task,knowing how to create an empty file using the Command prompt can be a handy tool in your technical toolkit.

What are the implications of Handy misclassifying workers as independent contractors?

Interview with Dr. Emily Carter,Labor Economist and Gig Economy Expert

By Archyde News Editor

Archyde: Dr. Carter, thank you for joining us today. the recent $2.95 million settlement between Handy Technologies and the FTC has sparked significant discussion about the gig economy. Can you provide some context on what this case reveals about the broader challenges gig workers face?

Dr. Carter: Thank you for having me. This case is a stark reminder of the systemic issues plaguing the gig economy. Handy’s settlement highlights two critical problems: misleading earnings claims and inadequate transparency around fees. Workers were lured onto the platform with promises of high hourly rates—up to $45—but the reality was that over 90% earned far less. This discrepancy, coupled with hidden fees and fines, left many workers financially vulnerable.

Archyde: The FTC’s complaint alleges that Handy misled workers about potential earnings. How common is this practice in the gig economy?

Dr.Carter: Sadly, it’s quite common.Many gig platforms use aggressive marketing tactics to attract workers, often exaggerating potential earnings. This creates a false sense of financial security. workers,many of whom are already in precarious financial situations,are drawn in by these promises,onyl to find that the reality falls far short. This isn’t just a Handy issue—it’s a widespread problem across the gig economy.

Archyde: The lawsuit also mentions that Handy misclassified workers as independent contractors. What are the implications of this classification for gig workers?

Dr. Carter: Misclassification is a significant issue.By labeling workers as independent contractors, companies like Handy avoid providing benefits such as health insurance, paid leave, and overtime pay. This leaves workers without the safety nets that traditional employees enjoy.Additionally, independent contractors often bear the brunt of fees and expenses, further eroding their earnings. This case underscores the need for clearer regulations around worker classification.

Archyde: A 2022 survey by the Economic Policy Institute found that gig workers often face unpredictable income and lack benefits. How does this financial instability impact their lives?

Dr. Carter: The financial instability is devastating. Many gig workers live paycheck to paycheck, and unpredictable income makes it nearly impractical to budget or plan for the future. The survey you mentioned found that one in five gig workers experienced hunger due to insufficient income,and nearly a third struggled to pay utility bills. These are not just statistics—they represent real people facing real hardships.

Archyde: Handy has agreed to the settlement without admitting fault and emphasized its commitment to supporting small businesses. How do you view their response?

Dr. Carter: While it’s positive that Handy is taking steps to resolve the issue, their response feels somewhat dismissive. By not admitting fault, they sidestep accountability for the harm caused to workers. Their focus on supporting small businesses is commendable, but it shouldn’t come at the expense of the workers who power their platform. True commitment to their workforce would involve more transparency, fairer wages, and better protections.

Archyde: What steps can be taken to address these systemic issues in the gig economy?

Dr. Carter: Ther are several steps that can be taken. First, we need stronger regulations to ensure transparency in earnings and fees. Platforms should be required to provide clear, accurate information about potential earnings and any deductions. Second, we need to revisit worker classification laws to ensure that gig workers have access to benefits and protections. there should be mechanisms for workers to report abuses and seek redress without fear of retaliation.

Archyde: Do you think this settlement will lead to meaningful change in the gig economy?

dr. Carter: It’s a step in the right direction, but it’s not enough on its own. For meaningful change to occur, we need a combination of regulatory action, corporate accountability, and worker advocacy. this case has brought attention to the issues,but sustained pressure is needed to ensure that companies prioritize fair treatment of workers over profit margins.

Archyde: Thank you, Dr. Carter, for your insights.this has been an enlightening discussion.

Dr. Carter: Thank you for having me. It’s crucial that we continue to shine a light on these issues and advocate for the rights of gig workers.

End of Interview

This interview highlights the complexities of the gig economy and the urgent need for reform to protect workers from exploitation and financial instability. Stay tuned to Archyde for more in-depth coverage of labor and economic issues.