The U.S. Federal Trade Commission (FTC) has mandated Care.com, a notable platform connecting gig workers with opportunities in elder-care and childcare, to disburse $8.5 million in refunds to its users. The agency spotlighted deceptive practices in the company’s marketing messages and the cumbersome procedure for canceling paid memberships.
On Monday, the FTC highlighted that Care.com misled customers regarding the available job volume and potential earnings, misleading caregivers into anticipating more opportunities and higher income than was actual. Simultaneously, the FTC critiqued Care.com for its convoluted membership cancellation process, including extensive questionnaires and warnings, ultimately ordering the platform to implement a “straightforward cancellation method.”
In response, Care.com has agreed to a settlement with the FTC, stressing its commitment to facilitating connections between families and caregivers. However, the company also noted its readiness to engage in prolonged litigation if needed, underscoring the seriousness with which it approached the allegations.