As reported by our payroll partner, GTM Payroll Services, online nanny job site Care.com has agreed to a proposed $8.5 million settlement for alleged “unlawful practices,” including “deceptive advertising” enticing caregivers to buy subscriptions to apply for jobs and “a number of unlawful tactics” to prevent families from being able to cancel their subscriptions, according to a statement released this week by the Federal Trade Commission (FTC).
This isn’t the first time this organization has had legal troubles. In 2020, Care.com paid $1 million to settle allegations brought by two district attorneys in California over misrepresented background checks and unlawfully enrolling customers in auto-renewal subscriptions.
That settlement came on the heels of a Wall Street Journal report that found the platform didn’t conduct complete background checks of its caregivers, placing that burden on families. The report also found that unvetted, and even unlicensed, daycare centers were also listed on the site and that some of those providers were responsible for the deaths of children in their care.
Why Hire Through an Agency and Not Online?
As we discussed last month, there are many advantages to using an agency like ours. This recent instance with Care.com further illustrates the risk a family takes when using an online site instead of an agency to hire a nanny or other household employee.
Based on a GTM survey of household employers, when a family hires a nanny through an agency rather than a website, they’ll find a better-quality nanny, one they’ll keep for longer and spend less time finding the right match. In the same survey, 74 percent of those who hired through an agency said the hassle-free process and time savings were the top reasons they decided to work with placement professionals.
The supposed benefit of using an online job site is a broader selection of candidates. However, 83 percent of respondents who used an online job site said the “number of responses from unqualified candidates” was one of the most significant drawbacks of going online to find a nanny. Sifting through applicants that don’t match a family’s criteria can add time and frustration to the hiring process.
Hire Through A New England Nanny
Still not convinced using an agency is the way to go?
Request a service or give us a call at (518) 348-0400 and we’ll provide a free consultation so you can decide for yourself if you want to try hiring on your own or take advantage of the support and peace of mind you’ll get with us!