The Federal Trade Commission announced a proposed $8.5 million settlement with Care.com for alleged unlawful practices, including misleading job seekers and posters on the site. Care.com was accused of using inflated job numbers and baseless earnings claims to attract caregivers to its platform, as well as trapping consumers in subscriptions with deceptive design practices. The settlement aims to return millions of dollars to affected consumers and ensure an honest marketplace for families and caregivers.
Care.com offers services to help consumers find caregivers for children, family members with special needs, elderly parents, pets, housekeeping, and tutoring. The settlement includes issuing refunds to consumers harmed by the company’s misleading practices, making earnings claims based on evidence, disclosing communication methods before accepting payment, and simplifying subscription cancellations. Despite the settlement, Care.com disputed the FTC’s claims and stated that the agreement should not be seen as a validation of the allegations, emphasizing the company’s long-standing focus on helping families and caregivers.
In response to the settlement, Care.com denied allegations of manipulating statistics, inflating information, or attempting to deceive customers, stating that rate information on the site is based on what families are willing to pay. The company defended its nearly 20-year track record of successfully connecting millions of American families with caregivers and claimed to prioritize customer satisfaction. The FTC, however, unanimously voted to file a complaint against Care.com, stating that the action was taken in the public interest based on concerns of potential violations of the law.
The FTC’s settlement with Care.com aims to address the alleged deceptive practices by requiring the company to provide evidence for earnings claims, enhance transparency on communication methods, and simplify subscription cancellations. The $8.5 million settlement will be used to issue refunds to affected consumers who were misled by Care.com’s practices. While Care.com disputed the allegations and defended its reputation, the FTC emphasized the importance of maintaining a fair and truthful marketplace for families seeking care services and caregivers looking for work.
Overall, the FTC’s settlement with Care.com highlights the importance of transparency and honesty in online platforms connecting service providers with consumers. By addressing alleged deceptive practices and ensuring refunds for affected consumers, the settlement aims to protect the interests of families and caregivers relying on Care.com’s services. While Care.com maintained its commitment to assisting families and caregivers, the settlement serves as a reminder for companies to uphold ethical standards and provide accurate information to their users. The FTC’s proactive approach in enforcing consumer protection laws demonstrates its dedication to safeguarding public interests and maintaining integrity in the online marketplace.
