Care.com, a platform for in-home care services, has agreed to pay $8.5 million to settle charges from the U.S. Federal Trade Commission for inflating job numbers and making it difficult to cancel memberships. The settlement follows thousands of complaints from customers who were billed despite thinking they had canceled. The FTC found that Care.com enticed customers with exaggerated job opportunities and earnings claims, knowing that many were unlikely to result in employment. They also used deceptive website designs to frustrate customers trying to cancel. Around 2.9 million consumers bought auto-renewing memberships between 2019 and 2022. The settlement requires Care.com to provide a simple cancellation mechanism and verify employment claims on its website. The FTC chief praised the settlement for putting an end to these unlawful practices. Care.com stated that they settled to maintain focus on helping families and caregivers, and criticized the FTC for attacking businesses trying to address rising child and healthcare costs.
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Care.com reaches settlement after accusations of job listing inflation and pressured membership renewals
