Care.com, a platform connecting families with caregivers, recently faced legal action from the Federal Trade Commission (FTC) for alleged deceptive practices related to job availability, earnings claims, and subscription cancellations. This article delves into the FTC’s complaint and the resulting settlement, highlighting the importance of transparent and honest customer service in the caregiving industry.
Deceptive Marketing Practices Targeting Caregivers
The FTC’s complaint alleges that Care.com misled caregivers with inflated job numbers and unsubstantiated earnings claims. Care.com advertisements often cited millions of available jobs, but the FTC contends that many listings were from families who hadn’t purchased paid memberships, making it impossible for caregivers to secure those positions. This practice, the FTC argues, lured caregivers into purchasing subscriptions under false pretenses.
Furthermore, the FTC challenges Care.com’s earnings claims, arguing they lacked sufficient data to support advertised hourly and weekly rates. The complaint points to discrepancies between advertised rates and Care.com’s own website data regarding average pay for babysitters. The FTC alleges that Care.com didn’t track actual earnings and relied on averages from listed jobs without verifying actual negotiated rates. This practice continued even after the FTC issued a warning about misleading earnings claims in 2021.
“Dark Patterns” Obstructing Subscription Cancellations
Beyond misleading marketing, the FTC alleges Care.com employed “dark patterns”—tactics designed to hinder subscription cancellations. Consumers reported difficulties navigating the cancellation process, encountering confusing language, unnecessary steps, and promotional offers for other memberships before finally being able to cancel. The FTC argues that this complex cancellation process contrasted sharply with the simple two-step cancellation for free subscriptions.
Settlement and Implications for Care.com Customer Service
The settlement requires Care.com to pay $8.5 million in refunds to affected consumers. It also mandates changes to Care.com’s business practices, including:
- Honest Earnings Claims: Care.com must substantiate all future earnings claims with verifiable data.
- Accurate Job Numbers: Only jobs from families capable of hiring can be included in advertised job counts.
- Transparent Communication: Care.com must clearly explain its communication system before users purchase subscriptions.
- Simplified Cancellation: A straightforward cancellation process for all paid subscriptions is required.
This case underscores the importance of ethical and transparent customer service, especially for platforms connecting vulnerable populations seeking essential services. The FTC’s action against Care.com serves as a reminder that deceptive marketing and manipulative cancellation practices can have significant consequences. Moving forward, Care.com’s commitment to these changes will be crucial for rebuilding trust with both caregivers and families.
