Care.com, a platform for hiring in-house help such as babysitters or house cleaners, has reportedly settled charges that it inflated job listings and forced membership renewals. The charges asserted that Care.com misled customers about the quality and volume of its job listings while also enforcing automatic membership renewal practices without obtaining proper consent from its members. The settlement includes specific changes that the platform must implement to avoid such incidents in the future:
1. Clearly disclose to consumers the terms of membership before enrolling them into a subscription service and get their clear consent before charging them.
2. Notify users if their subscription is set to automatically renew, via an easily understandable notification.
3. Provide an easily accessible and straightforward way for users to opt out of renewals.
Additionally, there may be financial penalties involved in the settlement, however, these are often undisclosed or made confidential. This move is seen as a part of efforts from authorities towards fair and transparent e-commerce practices, and also a warning for similar online service platforms to ensure they adhere to these practices.
