"The order announced today puts a stop to these unlawful practices, returns millions of dollars to consumers, and helps ensure an honest marketplace for families looking for care and caregivers looking for work," stated FTC Bureau of Consumer Protection Director Samuel Levine.
The FTC claimed that Care.com "vastly overstated" job availability and made "unsubstantiated claims" about potential earnings, misleading consumers to pay for subscriptions.
In one 2021 ad campaign, Care.com advertised jobs starting "from $18/hr," while stating that the average pay rate for babysitters was between $13 and $14.25 per hour.
Although Care.com denies the FTC's allegations, it has agreed to pay $8.5 million in refunds to users and stated the settlement requires 'no material change' to its service.
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