AUSTIN (KXAN) --- A company that helps people find babysitters, nannies and adult caregivers faces accusations it misled subscribers about job postings and pay.
The Federal Trade Commission filed a complaint against Austin-based Care.com. The online platform is where people trying to hire for things like child and older adult care can post jobs and people looking for those jobs can apply.
As a result of the complaint, Care.com agreed to a $8.5 million settlement. The FTC said it plans to give that money back to consumers harmed by its alleged practices.
In the FTC complaint, the government agency said Care.com makes unsubstantiated claims about how much people could earn through its job postings.
"In 2021, Care ran a national advertisement on a third-party website promising 'Childcare jobs from $18/hr,' while simultaneously stating on its website that, 'On average, the national pay rate for babysitting jobs' and 'The average rate for babysitters on Care.com' was between $13 and $14.25 per hour," the complaint said.
Along with earnings claims, the FTC said the website persuaded people to buy subscriptions by overstating the number of jobs available on the site.
When it comes to those memberships, the FTC accused Care.com of "dark patterns" to prevent both job seekers and posters from being able to cancel their subscriptions.
"In the four required pages, Care.com poses a variety of obstacles to cancellation, including two pages that contain optional questions, one page with confusing options from which to choose, and a save offer of a new negative option, auto-renewing membership," the complaint stated.
While Care.com agreed to a settlement, the company told KXAN that doesn't validate the FTC's claims.
"Though Care.com was fully prepared to litigate this matter and confident in its position, we decided to enter into an agreement with the FTC to resolve it now and keep our focus on helping families and caregivers. We've been in business for nearly 20 years, and successfully connected millions of American families with caregivers. We are proud of our rich history of serving our customers and have always put them first."
Care.com Spokesperson
Regarding the misleading pay allegations, Care.com said it "does not set rates and we never make promises about earnings. The data we provide about posted rates is based solely on what families say they are willing to pay, which varies significantly."
As far as the cancellations go, the company said members can easily cancel if they wish and that it is further streamlining the process.
"Cancellation instructions for desktop and mobile users are included in every confirmation email upon sign up, accessible in our Help Center and available through our Customer Care support team which also offers 24 hour support via chat," the company said.
