On August 26, the FTC released its complaint and stipulated order against an online platform offering child and senior care services, alleging violations of the FTC Act and the Restore Online Shoppers’ Confidence Act. The FTC claimed the company advertised inflated earnings and job opportunities to lure workers onto its platform and into purchasing auto-renewing memberships. The FTC also claimed that the company used dark patterns to frustrate consumers’ attempts to cancel memberships.
The FTC prayed the court to act. The FTC’s stipulated order would provide for a permanent injunction, a monetary judgment, and other relief. The order would prohibit the company from making earnings claims without reliable evidence to substantiate them and misrepresenting the number of available jobs on its platform. It would also mandate that the company provide a simple mechanism for consumers to cancel their auto-renewing memberships. The order also would require the company to pay $8.5 million in monetary relief to the FTC, which will be used for consumer redress. Additionally, under the order, the company must submit compliance reports to the FTC and retain records related to its compliance with the order.