Care.com fined 8.5 million $ for defrauding employees and complicating unsubscribing

Care.com was ordered to pay $8.5 million in fines for misleading employees about wages and job availability, as well as complicating the process of canceling subscriptions.

Care.com, an online platform that specializes in finding care services, has been fined $8.5 million by the US Federal Trade Commission (FTC) for systematically defrauding workers and families. Care.com inflated the number of available jobs and salary levels, misleading users. About 2.9 million US users purchased automatic subscriptions to services that were often difficult to cancel due to “dark patterns” — techniques that made the process of canceling subscriptions difficult.

The FTC also found that about 56% of the job postings on Care.com were created by users who had no intention of hiring workers, further compounding the fraud. In addition, users faced difficulties when trying to unsubscribe, as they had to go through many steps and fill out numerous questionnaires.

The FTC opened the investigation after numerous complaints from users about difficulties canceling subscriptions and unrealistic expectations about available jobs. This is not the first time that major online platforms have faced fines for using “dark patterns” to retain customers.

Care.com has agreed to a settlement proposed by the FTC in which it will pay $8.5 million, which will be used to compensate affected users. The company is also required to review its practices and ensure a realistic representation of vacancies and income on the platform.