Care.com Settles FTC Charges Over Inflated Job Numbers

Care.com, a platform that provides in-home care services for children, older adults, and pets, has agreed to pay $8.5 million to settle charges by the U.S. Federal Trade Commission (FTC). The FTC alleged that Care.com grossly inflated the number of available jobs on its platform and made it difficult for customers to cancel their memberships.

• Care.com enticed customers to buy auto-renewing memberships by overstating the number of "gigs" or jobs on its platform.
• The FTC claimed that Care.com knew or should have known that a significant number of these jobs were unlikely to result in actual employment.
• About 2.9 million U.S. consumers bought Care.com auto-renewing memberships between January 2019 and March 2022.

Deceptive Practices in Membership Cancellations

The FTC accused Care.com of using deceptive website designs to frustrate customers who wanted to cancel their memberships.

• The company used misleading "Submit" and "Cancel" buttons that actually prevented customers from successfully canceling their memberships.
• Many customers thought they had canceled their memberships but were still billed again.

Settlement Terms and Refunds

As part of the settlement, which requires a judge's approval, Care.com will:

• Pay $8.5 million, which will go toward refunds for affected customers.
• Provide a "simple mechanism" for customers to avoid unwanted membership renewals.
• Back up any employment claims on its website with substantiated data.

Care.com's Response

Care.com did not admit or deny any wrongdoing in agreeing to settle the charges. The company stated that it settled to keep its focus on helping families and caregivers, and expressed disappointment that the FTC "has chosen to attack trusted businesses who are part of the solution" as child and healthcare costs rise.

FTC's Stance on Deceptive Practices

Samuel Levine, the FTC's consumer protection chief, stated that "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." The settlement aims to put a stop to these unlawful practices.