Care.com, a leading online marketplace for finding and managing family care, has recently settled charges that it exaggerated the number of potential job opportunities for caregivers on its platform. The company was accused by the Federal Trade Commission (FTC) of falsely stating that all caregiver job postings were reviewed before they were made public.
Furthermore, Care.com allegedly enforced improper automatic renewals of premium memberships, which is a violation of the Restore Online Shoppers’ Confidence Act. Despite displaying terms for membership cancellations and renewal charges, the company did not adequately disclose them to customers or ask their permission to renew their subscriptions.
In response to these accusations, Care.com agreed to pay $1 million to the FTC and reform its practices to improve the accuracy of its job listings and the clarity of its billing policies. This settlement aims to protect consumers and regulate the behavior of online marketplace businesses.
