Care.com Settles FTC Allegations for $8.5 Million

Care.com has agreed to an $8.5 million settlement with the U.S. Federal Trade Commission (FTC) over allegations of deceptive practices. The FTC accused Care.com of inflating job numbers and earnings to lure caregivers and using misleading website designs to complicate subscription cancellations. The settlement, which requires judicial approval, mandates refunds to affected consumers and ensures the company provides clear cancellation mechanisms and substantiated job and earning claims. Despite disputing the FTC's claims, Care.com chose to settle to maintain its focus on helping families and caregivers. The FTC noted that approximately 2.9 million consumers purchased auto-renewing memberships between January 2019 and March 2022, many of whom faced billing issues despite attempts to cancel.