Daily Washington Insider
  • Business
  • World
  • Science
  • Investing

Daily Washington Insider

  • Business
  • World
  • Science
  • Investing
Business

Care.com settles charges it inflated jobs listings and forced membership renewals

by admin August 30, 2024
August 30, 2024
Care.com settles charges it inflated jobs listings and forced membership renewals

Aug 26 (Reuters) — Care.com, a platform for providing in-home care services to children, older adults and pets, agreed to pay $8.5 million to settle U.S. Federal Trade Commission charges it grossly inflated the number of available jobs and made it difficult to cancel memberships.

The settlement with the unit of IAC Inc (IAC.O) was filed on Monday in the federal court in Austin, Texas, and requires a judge’s approval.

It followed tens of thousands of complaints from Care.com customers, including many who thought they canceled memberships but were billed again. The $8.5 million will go toward refunds. Care.com did not admit or deny wrongdoing in agreeing to settle.

The FTC said Care.com enticed customers to buy auto-renewing memberships by overstating the number of jobs, or “gigs,” on its platform and how much people could earn from them.

It said Care.com knew or should have known a significant number of the jobs were unlikely to result in employment.

The FTC said Care.com then “frustrates” customers seeking to cancel by using deceptive website designs, including a “Submit” button that misleads them into believing they canceled, and a “Cancel” button that actually stops the cancellation process.

About 2.9 million U.S. consumers bought Care.com auto-renewing memberships between January 2019 and March 2022.

The settlement requires the Austin-based company to provide a “simple mechanism” for avoiding unwanted renewals, and back up employment claims on its website.

“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,” FTC consumer protection chief Samuel Levine said. “The order announced today puts a stop to these unlawful practices.”

In a statement, Care.com said it settled to keep its focus on helping families and caregivers.

It also said that as child and healthcare costs rise, “it is disappointing that the FTC has chosen to attack trusted businesses who are part of the solution.”

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Oil tanker attacked by Houthis in Red Sea appears to be leaking oil, Pentagon says
next post
Home prices hit record high in June on S&P Case-Shiller Index

You may also like

WNBA files trademark application to bring back ‘Detroit...

February 2, 2025

IAC approves spinoff of home improvement marketplace Angi

January 14, 2025

Dow tumbles 475 points, S&P 500 suffers worst...

April 16, 2024

Two plead guilty to insider trading related to...

April 4, 2024

Restaurants are rebounding — but Starbucks and McDonald’s...

January 30, 2025

Apple boosts U.S. investment plans with $500 billion...

February 25, 2025

Most Americans falsely think the U.S. is in...

May 24, 2024

Stellantis to offer broad buyouts to U.S. salaried...

August 1, 2024

Starbucks CEO is out after just over a...

August 15, 2024

JPMorgan Chase is giving its employees an AI...

August 12, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      UN experts urge Thailand not to deport dozens of Uyghurs to China...

    • 2

      Hong Kong plans to install thousands of surveillance cameras. Critics say it’s more proof the city is moving closer to China

    • 3

      Trump has assembled a team of China hawks. How will Beijing respond?

    • 4

      China executes man who plowed car into crowds in deadliest attack in a decade

    • 5

      How Calvin Klein and Tommy Hilfiger got caught in Trump’s trade war with China

    Categories

    • Business (1,475)
    • Investing (4,835)
    • Science (627)
    • World (3,687)
    Footer Logo
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: dailywashingtoninsider.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2026 dailywashingtoninsider.com | All Rights Reserved