Care.com has agreed to an $8.5 million settlement with the Federal Trade Commission (FTC) following allegations of deceiving caregivers and families using its platform. According to the complaint, Care.com engaged in deceptive advertising by overstating the number of available jobs and making unsubstantiated claims about potential earnings, luring caregivers into purchasing subscriptions. The settlement funds will be refunded to affected customers, and the company is required to substantiate any future claims regarding job availability and earnings.
Care.com’s deceptive practices included inflating the number of job listings on its platform, many of which had little to no chance of leading to actual employment. Since at least 2019, the company advertised millions of these jobs to entice care providers to subscribe. Additionally, Care.com made unverified claims about how much money users could earn, often promoting higher pay rates than what was actually typical on the platform. The FTC’s complaint highlighted that Care.com did not track actual earnings for jobs found through its platform, leaving caregivers misled about their potential income.
Moreover, the platform’s design made it difficult for families seeking services to cancel their subscriptions, trapping them in auto-renewing memberships. This case underscores the importance of transparency and fairness in online platforms, especially those that families rely on for critical care services like elderly care, tutoring, and housekeeping. The FTC’s action ensures that consumers are better protected from misleading claims and unfair practices.
-Phan Trần Hương-