The Federal Trade Commission announced that Care.com must pay $8.5 million to resolve allegations it deceived users through false earnings claims, misleading job listings, and dark-pattern cancellation flows tied to its auto-renewing subscription offerings.

As part of the settlement, the FTC is distributing more than $8.1 million to 194,207 consumers who purchased subscriptions under these deceptive conditions. Payments are being issued via checks and PayPal.

The FTC’s investigation revealed that Care.com:

• Advertised inflated job opportunities by including listings from non-paying users, leading caregivers to believe more legitimate jobs were available than actually existed.

• Made unsubstantiated earnings claims, such as promoting pay rates like “$18/hour,” without providing evidence to support those figures.

• Used complex, multi-step cancellation flows that made it difficult for subscribers to end their memberships, in violation of federal law.

Care.com paid a total of $8.5 million into an FTC-administered fund. Of that amount, $8.1 million is being distributed directly to affected consumers, while the remaining balance—approximately $400,000—covers administrative costs associated with payment processing and compliance oversight.

In addition to financial redress, the order requires Care.com to:

• Substantiate all future job availability and income claims with verifiable data.

• Clearly disclose subscription terms, renewal policies, and cancellation instructions.

• Eliminate user interface practices that obstruct or discourage cancellations.

INSIDER TAKE

This case sends a strong message: aggressive or opaque subscription tactics are no longer tolerated.

For subscription executives, the implications are clear:

1. Substantiate Value Claims
If your platform promotes earnings, job access, or premium features, those claims must be verifiable and substantiated. The FTC expects supporting data—averages, ranges, and disclaimers—to be accurate, documented, and ready for inspection.

2. Remove Friction from Cancellation Flows
The crackdown on dark patterns continues. Multi-click exits, confusing language, or buried cancel options are red flags. One-click cancellation isn’t just best practice, it’s becoming a baseline compliance requirement.

3. Treat Compliance as a Living Discipline
Even trusted brands face enforcement if they let UX, marketing, or retention strategies drift. Regular audits of subscriber flows—from acquisition through cancellation—should be embedded in quarterly risk reviews.

The FTC’s action against Care.com serves as a clear warning to all subscription businesses: transparency, fairness, and evidence-based claims are non-negotiable. Now is the time to reexamine your messaging, retention tactics, and cancellation processes—before regulators do.