Care.com settles $8.5M lawsuit with FTC over inflated job numbers and deceptive practices.
Care.com has agreed to pay $8.5 million in a settlement with the US Federal Trade Commission (FTC) over charges that it exaggerated the number of available jobs on its platform and made it difficult for customers to cancel memberships. The FTC claimed that Care.com used inflated job numbers and baseless earnings claims to attract caregivers to its platform and employed deceptive design practices to trap consumers in subscriptions. The settlement requires Care.com to only make earnings claims backed by evidence, provide clear communication on how the site works, and simplify the process for users to cancel their subscriptions. Care.com denies wrongdoing and states that it settled to focus on assisting families and caregivers.
August 26, 2024
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