FTC Accuses Care.com of Misleading Job-Seeking Caregivers
The Federal Trade Commission took legal action against child and older adult care platform Care.com.
The FTC alleged that Care deceived caregivers about the availability of jobs and the amount they could expect to earn, while also failing to offer families looking for care a simple way to cancel their paid subscriptions to the platform, according to a Monday (Aug. 26) press release.
Care agreed to a settlement requiring it to turn over $8.5 million, which will refund consumers hurt by its practices, the release said. The settlement also requires the company to back up its claims about earnings, be honest about the number of available jobs on its website and allow users to easily cancel subscriptions.
“Care.com used inflated job numbers and baseless earnings claims to lure caregivers onto its platform, and used deceptive design practices to trap consumers in subscriptions,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in the release. “The order announced today puts a stop to these unlawful practices, returns millions of dollars to consumers, and helps ensure an honest marketplace for families looking for care and caregivers looking for work.”
Care issued a statement Monday, which said although it was ready to litigate the matter for “the next several years,” it instead chose to reach an agreement with the FTC to focus on its customers.
“This settlement is in no way a validation of the FTC’s claims,” the company said. “In fact, the settlement requires no material change in how Care.com serves those who use its platform.”
The statement added that as caregivers are leaving the field and people are facing steep costs for eldercare and childcare, “it is disappointing that the FTC has chosen to attack trusted businesses who are part of the solution.”
In addition to the allegations around Care’s dealings with its workers, the FTC said in the release that the company made it difficult for users to cancel the paid subscriptions needed to contact job posters or job seekers by employing so-called “dark patterns.”
“When consumers try to cancel Care subscriptions, they must click through a number of unrelated links to find information about how to cancel,” the release said. “According to the lawsuit, consumers regularly complained about difficulties in finding the cancellation options, with many resorting to searching online for instructions on how to cancel.”
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