The FTC has ordered Care.com to pay $8.5 million in refunds, revealing that the company misled caregivers about job availability and pay rates, while making membership cancellations excessively complicated.
According to the FTC, Care.com employed deceptive marketing techniques to attract caregivers by exaggerating job opportunities, thereby misleading customers regarding the efficacy of its platform.
The commission's actions highlight a broader issue in the gig economy, where companies often fail to meet even basic transparency standards, prompting the need for robust regulatory oversight.
In settling with the FTC, Care.com emphasized its desire to refocus efforts on aiding families and caregivers, despite indicating readiness to engage in prolonged litigation.
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