⚖️ Gig Platform Handy Under Regulatory Pressure

In partnership with

FTC and NY Attorney General Take on Handy

The Federal Trade Commission (FTC) and New York’s attorney general accused Handy, a gig-work platform, of misleading workers about potential earnings and withholding millions through undisclosed fees and fines. Handy marketed inflated pay rates achievable by only a small fraction of workers while failing to disclose costly conditions, such as additional fees to unlock faster payouts or fines tied to software bugs. As part of a settlement, Handy will pay $2.95 million in worker refunds and commit to greater transparency in its pay and fee disclosures.

See your finances more clearly with BILL & Ray-Bans

Over 60% of finance leaders that we surveyed this year said that financial automation helps them see a clearer picture of their financial operations.

Choose BILL Spend & Expense and get:

• Real-time visibility and great rewards

• Fraud protections

• Automated expense reporting for your business

Plus, get a pair of Ray-Ban Smart Glasses when you demo BILL.¹ Ready to see clearly for 2025?

Request a demo

¹ Terms & Conditions Apply. See offer page for more details. The BILL Divvy Card is issued by Cross River Bank, Member FDIC, and is not a deposit product.

Implications for Startups in the Gig Economy

This case is a stark warning for gig-focused startups: deceptive marketing and unclear policies can trigger severe legal and financial consequences. Transparency about pay, fees, and worker requirements isn’t just ethical—it’s a legal necessity. Startups should also ensure their apps and platforms avoid technical flaws that unfairly penalize workers, as these errors could result in costly regulatory actions. The reputational damage from such cases can undermine trust among both workers and users, a critical component for platforms that rely on network effects.

Best Practices for Protecting Your Startup

• Set Realistic Expectations: Clearly state how workers are paid and disclose any fees upfront to avoid accusations of false advertising.

• Audit Systems Regularly: Test for bugs or issues in systems that could result in unfair treatment of workers or financial penalties.

• Maintain Open Communication: Implement clear, accessible channels for workers to challenge or appeal fines and fees.

By prioritizing transparency and fairness, startups can build trust, reduce legal risks, and establish themselves as ethical players in the gig economy.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

Learn AI in 5 minutes a day

What’s the secret to staying ahead of the curve in the world of AI? Information. Luckily, you can join 800,000+ early adopters reading The Rundown AI — the free newsletter that makes you smarter on AI with just a 5-minute read per day.

Sign up to start learning.