The Federal Trade Commission (FTC) is distributing over $15.5 million in refunds to consumers, including servicemembers and their spouses, who were misled by Career Step's deceptive advertising practices. The online career-training company allegedly made false claims regarding job placement, career outcomes, externships, and partnerships with well-known companies.
According to the FTC, Career Step targeted servicemembers and their spouses through misleading incentivized reviews and advertisements in military-focused publications such as Military.com. The company also promoted its services at events sponsored by the military.
As part of a settlement agreement, Career Step paid more than $15.5 million to compensate affected students. Additionally, the company agreed to cancel nearly $28 million in unpaid balances for students who enrolled between February 2020 and February 2023. This settlement does not affect federal or private student loans or military benefits. Furthermore, Career Step is prohibited from engaging in deceptive advertising for educational products or services in the future.
The FTC is sending checks and PayPal payments to 42,794 consumers who enrolled and paid for training between August 7, 2018, and September 11, 2024, but did not receive debt cancellation as part of this settlement. Those receiving refunds should cash their checks within 90 days or redeem PayPal payments within 30 days.
For inquiries about payments, consumers can contact the refund administrator Simpluris at 866-675-2824 or visit the FTC website for frequently asked questions about the refund process. The FTC emphasizes that it never requires individuals to pay money or provide account information to receive a refund.
In addition to this case, the FTC's actions resulted in more than $337 million in consumer refunds across the country in 2024 alone. The agency continues its mission to promote competition while protecting and educating consumers.
