AUSTIN — Care.com Under Scrutiny for Misleading Practices

AUSTIN — Care.com Under Scrutiny for Misleading Practices

Austin-based Care.com is facing serious allegations from the Federal Trade Commission (FTC) regarding misleading information about job postings and pay rates for its users. The online platform is well-known for connecting families with babysitters, nannies, and caregivers, but recent complaints suggest it may not have been forthcoming with its subscribers.

Settlement Agreement

As the investigation unfolded, Care.com agreed to a settlement of $8.5 million with the FTC. The commission plans to return this money to consumers who were negatively affected by the platform’s alleged deceptive practices. The settlement does not, however, confirm the FTC’s claims, as Care.com maintains its innocence in this matter.

Unsubstantiated Earnings Claims

According to the FTC complaint, Care.com allegedly made exaggerated claims about potential earnings for caregivers. For instance, in a 2021 ad, the platform advertised “Childcare jobs from $18/hr.” However, this contradicted information on its own website, which stated that average rates for babysitting jobs ranged from $13 to $14.25 per hour.

Job Availability and Subscription Issues

On top of misleading pay information, the FTC accused Care.com of misrepresenting the number of job opportunities available. The commission claims that the website used “dark patterns” to complicate the subscription cancellation process, making it difficult for both job seekers and employers to opt out of their memberships.

The complaint outlined that users had to navigate through multiple pages, filled with optional questions and confusing choices, before they could cancel their subscriptions. The FTC highlighted that this made it a frustrating experience for consumers who wanted to cancel.

Care.com’s Response

In a statement to the press, Care.com expressed that they were ready to fight the accusations but chose to settle to focus on their primary goal: connecting families with caregivers. The statement read, “We’ve been in business for nearly 20 years, and successfully connected millions of American families with caregivers. We are proud of our rich history of serving our customers and have always put them first.”

Regarding the pay rate issues raised by the FTC, Care.com clarified that it does not set pay rates or promise earnings. Instead, the rates displayed are based on what families indicate they are willing to pay, which can vary widely. The company stated, “The data we provide about posted rates is based solely on what families say they are willing to pay, which varies significantly.”

Simplifying Cancellation

As for the claims about subscription cancellation difficulties, Care.com assured users that they could easily cancel their memberships. The company mentioned that it is working on improving the process and that cancellation instructions are readily accessible in confirmation emails, their Help Center, and through their Customer Care support team. Users can reach out for support 24 hours a day via chat if they need assistance.

Next Steps for Consumers

Consumers who believe they have been affected by Care.com’s practices may benefit from the settlement, as the FTC aims to distribute the allotted funds back to those harmed by the alleged misrepresentations. This situation serves as a reminder for users of all online platforms to remain cautious and diligent about the claims made by service providers.

The ongoing dialogue around fair practices in the online caregiving marketplace highlights the importance of transparency and truth in advertising. As Care.com moves forward post-settlement, it remains to be seen if this will lead to improved practices and communication for its users.