Care.com agrees to settle FTC lawsuit on marketing, cancellations
By Connor Hart
Care.com agreed to an $8.5 million settlement after the Federal Trade Commission alleged the online in-home care services platform deceived caregivers looking for jobs and failed to give users a simple way to cancel paid memberships.
In addition to refunding consumers harmed by its practices, Care will be required to back up its earning claims and simplify its cancellation process, according to the settlement.
"Though Care.com was fully prepared to litigate this matter and confident in its position, we decided to enter into an agreement with the FTC to resolve it now and keep our focus on helping families and caregivers," a Care.com spokesperson said. "This settlement should in no way be construed as a validation of the FTC's claims."
The FTC filed suit Monday in federal court in the Western District of Texas alleging Care's marketing messages about the number of jobs available on its site and workers' compensation estimates were deceptive.
"Care's earnings claims are not based on actual wages earned by providers," the suit states. "Care also grossly inflates the number of jobs it advertises as available on its platform by including a significantly large number of job postings that it knows, or should know, are unlikely to result in employment."
The company, owned by New York media and internet company IAC (IAC), also impeded members' ability to cancel auto-renewing memberships by employing "deceptive design tactics" and limiting access to customer service, according to the suit.
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-26-24 1733ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Q4 Stock Market Outlook: Where We See Opportunities for Investors
-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
Real Estate: Performance Continues to Be Driven by Interest-Rate Movements
-
Financial Services: Sector Doing Well Heading Into Rate-Cutting Cycle
-
Energy: OPEC Faces Hard Supply Decision in Latter Half of 2024
-
This Cheap Stock Is Still a Buy Even After 50% Rally
-
10 Top-Performing Dividend Stocks of Q3 2024
-
33 Undervalued Stocks
-
Communication Services: Cable’s Broadband Dominance Isn’t as Strong as It Once Was
-
Technology: Strength Continues, With Software Presenting the Best Buying Opportunities