FTC issues $8.1M refunds over Care.com's deceptive practices

Webp 5pp2ko12vzx927qgsfze54lv4smd
Andrew N. Ferguson Chairman | Federal Trade Commission

FTC issues $8.1M refunds over Care.com's deceptive practices

ORGANIZATIONS IN THIS STORY

The Federal Trade Commission (FTC) has announced the distribution of refunds amounting to over $8.1 million to consumers affected by misleading practices from Care.com, an online platform for child and older adult care jobs.

The FTC's allegations against Care.com included claims that the company exaggerated the number of available jobs on its site and made unsupported assertions about potential earnings for job seekers. Additionally, the FTC accused Care.com of employing unlawful tactics to hinder consumers from canceling their subscriptions.

Following these allegations, Care.com agreed to a settlement exceeding $8.5 million, which the FTC is using to compensate those impacted by these deceptive practices. The settlement also mandates that Care.com make truthful claims regarding earnings and job listings and provide an uncomplicated cancellation process.

The FTC is distributing refunds through checks and PayPal payments to 194,207 affected individuals. Recipients are advised to cash checks within 90 days or redeem PayPal payments within 30 days.

For inquiries related to payments, consumers can contact Epiq Systems at 888-867-6151 or visit the FTC website for frequently asked questions about the refund process. The FTC emphasizes that it never asks individuals for money or account details to issue refunds.

In 2024 alone, FTC initiatives resulted in more than $339 million in consumer refunds nationwide. The Commission continues its efforts to promote competition while protecting and educating consumers about their rights.

Further information on consumer topics can be found at consumer.ftc.gov, where individuals can also report fraudulent activities at ReportFraud.ftc.gov. Updates on consumer alerts and business news are available through the FTC's social media channels and newsletters.

ORGANIZATIONS IN THIS STORY