United States of America: Announced settlement in FTC public lawsuit against Care.com over alleged deceptive practices

On 26 August 2024, the US Federal Trade Commission (FTC) announced a settlement in the public lawsuit against Care.com, a platform for child and elder care jobs, for misleading caregivers about job availability and potential earnings, as well as for making it difficult for users to cancel their subscriptions. In particular, the FTC alleges that Care.com inflated the number of available jobs, enticing users to open paid subscriptions, and made unsubstantiated claims about the wages caregivers could earn. Furthermore, the company used deceptive practices, known as dark patterns, to hinder the cancellation process for paid memberships. As part of a proposed settlement, Care.com will pay USD 8.5 million to refund consumers affected by these practices, ensure future earnings claims are truthful and backed by evidence, accurately represent job availability, and provide a straightforward cancellation process.