Care.com to Pay $8.5M in FTC Deal

Care.com has agreed to a $8.5 million settlement with the FTC over allegations of deceptive practices involving caregivers and families

Care.com, a platform for gig workers in the eldercare and childcare space, is being ordered by the U.S.

Federal Trade Commission (FTC) will provide $8.5 million in refunds for deceiving caregivers seeking employment, making it difficult for families to terminate their paid memberships.

The agency announced on Monday that the company’s marketing communications had deceived customers regarding the number of jobs available on its platform and the payment for these jobs.

In a separate case, the FTC alleged that Care.com made it challenging to terminate memberships by redirecting users to multi-page questionnaires and warnings. The FTC also ordered the company to provide a “simple cancellation method.”

Care.com issued a statement announcing that it had settled with the FTC to maintain its commitment to assisting families and caregivers.

The company had initially stated that it was “prepared to litigate for the next several years if necessary.”