The Federal Trade Commission (FTC) has taken legal action against Care.com, a prominent platform for child and elder care, alleging deceptive practices that misled caregivers about job availability and potential earnings. The FTC also accused the platform of making it unnecessarily difficult for families to cancel their paid subscriptions.
According to a press release issued on Monday (Aug. 26), the FTC charged that Care.com misrepresented the number of job opportunities available and exaggerated the earnings caregivers could expect. Additionally, the platform reportedly employed deceptive design tactics, commonly known as “dark patterns,” to complicate the cancellation process for paid subscriptions, trapping consumers in unwanted memberships.
As part of a settlement agreement, Care.com has agreed to pay $8.5 million, which will be used to refund consumers affected by these practices. The settlement also mandates that the company substantiate its claims about caregiver earnings, accurately represent the availability of jobs on its platform, and provide a straightforward process for users to cancel subscriptions.
“Care.com lured caregivers onto its platform with inflated job numbers and unfounded earnings claims, while using deceptive practices to keep consumers locked into subscriptions,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in the press release. “This settlement puts an end to these unlawful practices, returns millions to consumers, and promotes a fairer marketplace for families and caregivers alike.”
In response to the FTC’s actions, Care.com issued a statement on Monday, expressing its decision to settle rather than engage in prolonged litigation, despite disputing the FTC’s claims. The company emphasized that the settlement does not require any significant changes to how it operates.
“This settlement does not validate the FTC’s claims,” Care.com stated. “In fact, the agreement involves no material changes in how we serve our users. At a time when caregivers are leaving the profession and families are grappling with high eldercare and childcare costs, it is unfortunate that the FTC has chosen to target businesses that are part of the solution.”
The FTC also highlighted the company’s use of “dark patterns” in making it difficult for users to cancel subscriptions. Consumers attempting to cancel their memberships reportedly had to navigate through multiple unrelated links before finding the relevant information. Many users expressed frustration over the complexity of the cancellation process, often resorting to online searches for instructions on how to cancel their subscriptions.
This action by the FTC underscores the importance of transparency and fairness in digital platforms, particularly those serving vulnerable populations such as caregivers and families in need of care services.
