Career Step, LLC, an online career-training company, has been ordered to pay $43.5 million to resolve charges from the Federal Trade Commission (FTC). The FTC alleged that Career Step deceived servicemembers and their families with misleading ads that falsely promised high employment outcomes, job placements, and partnerships with major companies. The settlement includes $27.8 million in debt cancellation and $15.7 million in cash payments to affected consumers.
According to the FTC, Career Step’s deceptive advertising tactics included false claims about job placement services and partnerships with well-known healthcare companies like CVS and Walgreens. The company reportedly used misleading ads on social media, its website, and military-focused publications to lure consumers into enrolling in its programs. Career Step’s advertisements falsely suggested that its training programs had high job placement rates and valuable partnerships that would guarantee employment for graduates.
The FTC’s complaint detailed that Career Step did not provide the job placement assistance it promised. The company’s job search support was limited to generic resume help and job postings, rather than the tailored placement services advertised. Additionally, Career Step’s claims about high employment rates for graduates were based on an optional survey with a very low response rate, making the data unreliable.
The settlement aims to address the harm caused by Career Step’s misleading practices and ensure that affected consumers receive compensation. The FTC emphasized the importance of holding companies accountable for exploiting consumer trust, especially when targeting vulnerable groups like servicemembers using their educational benefits.
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