The Federal Trade Commission announced an $8.5 million settlement with Care.com, addressing what the FTC referred to as “unlawful practices” on the platform. These practices included misleading job seekers and job posters with inflated job numbers and baseless earnings claims. The settlement aims to stop these practices, return millions of dollars to affected consumers, and create a more honest marketplace for families and caregivers seeking services on the site. Care.com offers services to help consumers find caregivers for children, family members with special needs, elderly parents, and pets, as well as providers of housekeeping and tutoring services.
The $8.5 million settlement will be used to issue refunds to consumers affected by Care.com’s alleged misleading practices. Additionally, Care.com must now provide evidence to back up earnings claims, inform consumers about how communication on the site works before accepting payment, and make it easier for users to cancel their subscriptions. In response to the settlement, Care.com disputed the FTC’s claims, stating that they were prepared to litigate but decided to settle to focus on helping families and caregivers. They emphasized their nearly 20 years in business and their commitment to putting customers first.
Care.com specifically denied claims of manipulating statistics and tricking customers, stating that the rate information on the site is based on what families say they are willing to pay. The FTC, on the other hand, mentioned that its board unanimously voted to file a complaint against Care.com, indicating that it believed the company was violating or about to violate the law. The FTC only initiates such actions when it believes a company’s practices are not in line with the law and that taking action is in the public interest.
The settlement with Care.com aims to rectify the misleading practices that were identified by the FTC, ensuring a fair and transparent marketplace for families and caregivers. With the implementation of new measures, such as providing evidence for earnings claims and simplifying subscription cancellation processes, the company can work towards regaining consumer trust and enhancing user experience on the platform. Care.com’s response to the settlement stressed its long-standing commitment to serving families and caregivers, while challenging the FTC’s claims of unlawful practices. Overall, this settlement marks a significant step in addressing consumer protection issues within the online caregiving industry.
