Texas Federal Judge Blocks Biden Administration’s Immigration Reform
The Biden Administration’s program, known as Keeping Families Together was intended to address the plight of undocumented immigrants who have been in legal limbo while living in the United States for years.
Texas-based District Court Judge John Campbell Barker temporarily blocked the ability of the Biden Administration to give unauthorized or undocumented immigrants legal immigration status if they have married American citizens, effectively ending a program the Biden Administration began Aug. 20.
According to CBS News, Barker’s Aug. 26 injunction is only for two weeks, but he suggested it could be extended if necessary. The Biden Administration’s program, known as Keeping Families Together, was intended to address the plight of undocumented immigrants who have been in legal limbo while living in the United States for years.
The State of Texas, along with 15 other Republican-controlled states, argued in a lawsuit calling for an injunction that the program’s policy constituted a misuse of immigration parole authority. Barker, a Trump appointee, appeared to agree with their argument through his order.
Judge J. Campbell Barker, sitting in Tyler, TX, paused the program allowing undocumented spouses of U.S. citizens to remain in the U.S. while seeking citizenship instead of having to go back to their home country—possibly for years. To qualify for the program, spouses must have… pic.twitter.com/gdSdmRpoqH
BREAKING: Federal judge J. Campbell Barker temporarily blocks federal officials from granting legal status to undocumented immigrants married to U.S. citizens under a new Biden administration program, granting a request from 16 Republican-led states.
“The claims are substantial and warrant closer consideration than the court has been able to afford to date,” Barker wrote in his court order.
According to TheNew York Times, Barker’s order came despite advocacy groups requesting that testimony from couples who would be harmed by ending the program be allowed earlier, on Aug. 26.
Karen Tumlin, the director of the Justice Action Center, one of the groups that filed the request, told The New York Times that the order is an extreme measure.
“An order like this is an extreme measure that — by law — should only be taken in the most urgent of situations. This is heartbreaking for our clients and the thousands of couples who hope to benefit from this process and be able to live without fear that their family will be separated.”
According to Rebecca Shi, the executive director of the American Business Immigration Coalition, “It is bad for the economy and against human decency to prevent people who have been here working and paying taxes, often for more than 20 years, and married to U.S. citizens, from obtaining legal status more quickly.”
Ricardo Ocampo Hernandez, who applied to the program after it was first unveiled, told the outlet that he was hopeful that the program would help him and other immigrants navigate a system he believes is designed to keep immigrants in a holding pattern without true citizenship.
“For years, we’ve been caught in a cycle of legal challenges and financial strain, trying to navigate an immigration system that often seems designed to keep families like mine in limbo,” Hernandez said. “But with this new process, there is finally a path. When I filed my application, I felt both relief and anxiety after years of struggle.”
Charlotte To Host Inaugural Black College Invitational Championship In March 2025
The postseason tournament will be played at the Bojangles Coliseum from March 20-23, 2025
A new basketball tournament featuring HBCU (Historically black colleges and universities) teams will be taking place in Charlotte, North Carolina in Spring 2025.
The inaugural Black College Invitational Championship (BCIC) has been announced and will be played at the Bojangles Coliseum from March 20-23, 2025. 16 Division I and Division II teams from the Power Four HBCU conferences will be competing for the title of Black College Basketball Champion in both the men’s and women’s divisions.
Dr. Wes Bellamy told The Charlotte Observer that he had a dream about bringing a tournament for HBCUs to Charlotte, and that dream will be realized next March. The inaugural Black College Invitational Championship will host the best men’s and women’s basketball teams from the MEAC, SWAC, CIAA, and SIAC.
“This may sound weird to some of you, but I had a dream in November,” Bellamy said. “And I could see it, as clear as day: Us having this basketball tournament here in Charlotte. I called my best friend, Russell Stewart. I said, ‘Russ. I know this is gonna sound wild, but I had a dream about this basketball tournament. We have to do this here.’ And he told me: ‘Nothing you do is ever wild, because what you always put your mind to, you do.’”
A press conference was held on August 26, announcing the debut of the BCIC.
Teams that win the conference championships from the SWAC, MEAC, CIAA, and SIAC will be selected to participate in the tournament.
It’s a welcome back to Charlotte for a postseason basketball tournament since the city lost the CIAA tournament. The conference left Charlotte to play its postseason tournament in Baltimore after the 2019-20 season.
The BCIC is working with city officials to bring more auxiliary events and nightlife activities to complement the tournament for that weekend in March. Anyone interested in purchasing tickets or finding out information about what’s going on with the Black College Invitational Championship can head to the website.
Department Of Education Aims To Implement New HEA Student Debt Relief Plan This Year
The Department of Education is currently finalizing regulations for Biden's new HEA loan forgiveness plan, aiming to implement it this year.
Student loan borrowers have until Aug. 30 to opt out of the Biden-Harris administration’s new Higher Education Act (HEA) forgiveness plan. The plan seeks to provide debt relief for eligible borrowers, as determined by the U.S. Department of Education.
The newest initiative from the Biden administration aims to partially or completely cancel debt for different groups of federal student loan borrowers. “In early August, we emailed all borrowers about this potential student debt relief,” the Department of Education stated. “If you want to be included in potential student debt relief, you don’t need to take any action. If you don’t want to receive this debt relief, you need to tell your loan servicer. The agency is currently in the process of finalizing new regulations this fall.
“Once the regulations are finalized, we will identify borrowers who are eligible for forgiveness and will apply that forgiveness if the borrower has not opted out.”
If the proposed plan is carried out, the Secretary of Education will be authorized to cancel debt for borrowers, including those who first entered repayment years ago, borrowers who owe more than their original amount, borrowers eligible for relief who haven’t applied, and borrowers who attended an institution that failed to provide financial value or one of the department’s accountability standards.
Forbes reported that the Department of Education is working to implement the new student debt relief plan starting in October. However, the process may face challenges from Republican state leaders who previously challenged Biden’s HEROES Act with arguments that claimed the plan was too massive and expensive.
As previously mentioned by BLACK ENTERPRISE, the Biden-Harris administration announced the HEA forgiveness plan in September 2023 following a June 2023 ruling by the Supreme Court that hindered Biden’s attempt at student debt cancellation. Only a small fraction of the over 40 million borrowers who hold student loan debt have had their loans forgiven. Research in 2023 revealed that student loan forgiveness may potentially increase wealth for Black borrowers by 40%.
The Department of Education stated that anyone who opts out of the new HEA plan will also be “opting out of forgiveness due to enrollment in an income-driven repayment (IDR) plan for the next several months.” To opt out of forgiveness, borrowers must contact all of their servicers by Aug. 30 and won’t be able to opt back in. Servicers won’t be able to provide borrowers with eligibility status.
In an open letter dated Aug. 26., past employees of former President George W. Bush, the late Sen. John McCain, and Sen. Mitt Romney (R-UT) signed over support for their opposing party’s candidate just days after the Democratic National Convention (DNC) hosted a number of GOP supporters.
Close to five other former President George H.W. Bush employees also signed the letter, resulting in 238 signatures overall. “We reunite today, joined by new George H.W. Bush alumni, to reinforce our 2020 statements and, for the first time, jointly declare that we’re voting for Vice President Kamala Harris and Gov. Tim Walz this November,” the letter reads.
“Of course, we have plenty of honest, ideological disagreements with Vice President Harris and Gov. Walz. That’s to be expected. The alternative, however, is simply untenable.”
Other signers of the Harris-Walz letter include former McCain chiefs of staff Mark Salter and Chris Koch, McCain’s former legislative director and 2008 campaign press secretary, Joe Donoghue and Jennifer Lux, and George H.W. Bush’s longtime chief of staff, Jean Becker.
There has been an influx of Republicans who endorsed the Democratic ticket in recent years. Another group of anti-Trump supporters — composed of 150 former Bush, McCain, and Romney staffers — once pledged support for President Joe Biden during the 2020 election.
According to CBS News, the group put pressure against moderate Republicans and independents in battleground states who supported Biden “to take a brave stand once more.”
During the DNC in Chicago, former Trump allies like past press secretary and top aide to Melania Trump, Stephanie Grisham, candidly spoke out against her former boss, saying the indicted businessman has ”no empathy, no morals and no fidelity to the truth.” She also let Trump supporters know what he really thinks of them behind closed doors, allegedly describing them as “basement dwellers.”
An adviser to former Vice President Mike Pence, Olivia Troye, said the 45th president wants to push division “because it’s the only way he wins.” “You’re not voting for a Democrat. You’re voting for democracy,” Troye said. “You’re not betraying our party. You’re standing up for our country.”
Pence has openly admitted that he will not be supporting Trump in November 2024.
The letter also highlighted the damage Project 2025, a policy blueprint from the Heritage Foundation, would cause under another Trump reign. “At home, another four years of Donald Trump’s chaotic leadership, this time focused on advancing the dangerous goals of Project 2025, will hurt real, everyday people and weaken our sacred institutions,” the letter continued.
“Abroad, democratic movements will be irreparably jeopardized as Trump and his acolyte JD Vance kowtow to dictators like Vladimir Putin while turning their backs on our allies. We can’t let that happen.”
Since Harris launched her presidential campaign, her team has worked diligently with GOP opposers, forming “Republicans for Harris.” Members of that group include former Rep. Adam Kinzinger (R-Ill.), Georgia Lt. Gov. Geoff Duncan and Mesa, Arizona Mayor John Gile all spoke under blue lights during the convention and endorsed Harris.
Carnival Cruises Shares Warning About Purchasing Medicines At International Ports
Heald confirmed that the cruise line did not own or regulate the pharmacies located at international ports.
Carnival Cruises’ brand ambassador answered common questions about purchasing medicines at international ports.
The ambassador, John Heald, shared his insight about the pharmacies that cruisers can enter at foreign destinations. Specifically, he mentioned the frequent purchases of medicines not typically found over the counter within the U.S.
According to The Street.com, Heald advised passengers to think twice about buying these products despite the accessibility and relatively low costs. He cautioned those on his Facebook page about the lack of regulation, responding to a message about the drug Furosemide.
The inquirer asked, “I purchased Furosemide (4ml) in Cozumel in 2019. I will be on the Liberty cruise that stops in Cozumel on 8/30 [and] just became a platinum cruiser with you guys and want to buy some more from the port pharmacy. I need to know about the current prices. Any idea how much that should currently cost? Do you have a list of pharmacy prices? Do we need to worry about contamination? Does Carnival still consider this place in their port to be a reputable pharmacy?”
The medicine, colloquially known as “water pills,” can treat edema and swelling caused by heart failure as well as kidney and liver conditions, as confirmed by the Mayo Clinic. Heald used the message to confirm that Carnival does not own nor regulate the pharmacies.
“Well then, I have no idea why this lady would think that I would know drug prices at this shop,” he wrote. “However, perhaps that is because she and perhaps others think that we, Carnival Corporation, ‘own’ the pier at Puerto Maya and, therefore, own all the stores. We do not. So we cannot give any kind of recommendation for what is sold from this pharmacy and I do not have a price list.”
However, he noted that he knew which pharmacy the messenger was referring to.
“I know the pharmacy she is referring to, and it has been there for many years. I remember there used to be huge signs that would state that you can buy just about anything over the counter.”
Heald then asked other Facebook users on his page to chime in. Andrea Hazelwood, a commenter who identified as a registered nurse, warned vacationers about taking certain medicines that their doctors did not prescribe. However, given prescription drug prices in the U.S., the woman could not say the purchases were an entirely bad idea.
“I would be less concerned with the quality of meds at a foreign pharmacy and more concerned that this person is going to cause themselves kidney and/or cardiac issues taking a med their doctor didn’t prescribe them,” shared Hazelwood. “In general, I’m actually not opposed to buying meds at a foreign pharmacy to get past the outrageous prescription prices in the US as long as it’s a drug a person’s doctor has already prescribed for them.”
The cost of certain prescription drugs remains a prevalent topic across the United States; however, those trying to finesse the system while on their Carnival cruise should weigh if the risk is worth the reward.
The Sweetness Of Collective Giving To Impact Black Causes
The notion of giving through individual philanthropy “liberates the soul of the giver,” as the late Dr. Maya Angelou noted in her essay “The Sweetness of Charity.” But such giving can be even sweeter when resources are collectively pooled to support diverse-led causes.
That’s what leaders at JPMorgan Chase & Co. learned as they hosted their second annual “The Sweetness of Giving: A Celebration of Philanthropy” event in Martha’s Vineyard on Aug. 9. The gathering aims to address gaps in philanthropic support for diverse-led nonprofits and underscores the importance of collective giving to address these disparities.
“The Vineyard is also a really beautiful illustration of how the convenings and opportunities to be in communities with people who care deeply about our community and have done really well—but wanting to do good as they do well—is powerful,” said Alicia Wilson, JPMorgan Chase & Co. Head of Regional Philanthropy for North America, “which is what we saw we could tap into by going to the Vineyard. But we can also come back to Baltimore and do good in that community.”
Dekonti Mends-Cole, head of Diversity, Equity, and Inclusion Initiatives for Corporate Responsibility at JP Morgan Chase, said “The Sweetness of Giving” is about “deep partnerships where we’re truly leveraging the full assets of the firm to support the communities that we care about and really address systemic disparities.”
Impacting Diverse-Led Orgs
Of the $125 million committed by community foundations for Black communities after the death of George Floyd, this figure was only 2.1% of the overall giving from community foundations. Comparatively, funding specifically for Black communities represented 12% of all charitable giving and 5.4% of independent foundation giving in 2020, according to The National Committee for Responsive Philanthropy.
Mends-Cole said these statistics correlate to the fact that many Black-serving organizations do not have access to what we think of as “traditional philanthropy,” and the types of capital they’re receiving limit company hiring and growth.
“For diverse-led and -serving organizations, they receive less funding for their organizations to grow,” said Mends-Cole, meaning they have “less of an ability to scale to meet the size of the challenges they’re trying to address. That has real implications in terms of the delivery of services, resources, all of the things that we need to address these systemic disparities that are found particularly in diverse communities.”
Identity of Philanthropy
Black individuals have the “highest rate of giving money to people they know and to strangers in a given year,” according to Indiana University’s “Everyday Donors of Color” report. Wilson notes that research shows Black individuals–-regardless of income–-give a higher percentage of their income.
“This identity of philanthropy isn’t one that characterizes itself with diverse populations, even though we are statistically the most generous populations,” said Mends-Cole. “I think that’s part of the journey of individuals collective giving. It’s moving from a place in which you’re writing from your checkbook to thinking much more strategically about collective giving.”
According to the Dorothy A. Johnson Center for Philanthropy, participation in collective giving has more than doubled its impact in seven years, with 4,000 groups contributing more than $3.1 billion. Wilson notes that the concept of giving circles has long existed in Black communities—such as aid societies, churches, and civic organizations—and today, it’s showing up in pooled fundraising.
“We created a giving circle in Baltimore and raised $1M to give to diverse-led organizations,” Wilson said. “Many people who come from these communities watch leaders literally go into their own pockets to serve our community. Our call is to join with others to really try to address this disparity and help those leaders who are serving meet the challenge.”
JPMorgan Chase also helps donors consider tax-advantageous giving options. It offers a philanthropy center to support individuals in setting up donor-advised funds.
“As you become more sophisticated in your giving journey, there are platforms and ways to do so that benefit and support the wider wealth building, not just for individuals but communities as well,” said Mends-Cole.
The Sweetness of Collective Giving
This year’s Vineyard event featured Dr. Myechia Minter-Jordan, vice-chair/founder of The New Commonwealth Racial Equity and Social Justice Fund (NCF), and Elaine Welteroth, author, journalist, and founder of birthFUND. Roughly 75 attendees attended, including high-net-worth clients, prospects of JPMorgan’s Private and Commercial Bank, and business owners interested in equity-focused philanthropy and collective giving.
The two Black women founders discussed how they actively address gaps in their communities and how they’ve mobilized their networks to support their cause. NCF has reinvested more than $13 million into more than 250 Black and Brown-led nonprofits across the Commonwealth of Massachusetts, while birthFUND provides grants to cover the cost of holistic perinatal care and midwifery birth support.
Mends-Cole said NCF raised $40 million in less than four years by pooling together men and women from corporate America who donated as individuals but also asked their corporations to match their giving. Welteroth discussed utilizing her social media platform and visibility as a former editor of Teen Vogue to attract high-profile trusted voices like Serena Williams and others to join the journey of uplifting the stories of the Black maternal health crisis. Thus, Mends-Cole said, birthFUND raised $1 million in just a few months.
“Part of the magic is that all the resources are in our community to show up in the way that we need to differently, but we have to do so in a very different way collectively,” Mends-Cole said. “And as a firm, we’re here to support that.”
Source: JPMorgan Chase Chairman and CEO Jamie Dimon and executives hosted the “Reception in Celebration of Black Wealth Strategies” on Aug. 1, 2024 at Atria, welcoming more than 180 clients to the reception, which included remarks from Deb Langford, Head of Black Wealth Initiatives, followed by remarks and Q&A by Jamie Dimon. Photo courtesy of JPMorgan Chase & Co.
On the Vineyard and Beyond
“The Sweetness of Giving” is among the comprehensive Black wealth-strategy activations taking place on the Vineyard, with more to come in various cities this year. On Aug.1, JPMorgan Chase Chairman and CEO Jamie Dimon and executives hosted the Black Wealth Summit, including the “Reception in Celebration of Black Wealth Strategies” at Atria in Martha’s Vineyard. With a recorded attendance of over 180 clients, the reception featured welcome remarks by Deb Langford, Head of Black Wealth Initiatives, followed by a Q&A session with Dimon.
“It was an honor to spend time on Martha’s Vineyard with our clients and other members of the community,” Dimon said. “When JPMorgan Chase comes into a town or village, we aim to bring the full force of our company to all who live or do business there—helping nonprofits, individuals, hospitals, schools, small and big companies. Helping a community thrive is good for everyone.”
Other activations include an Atlanta-based “The Sweetness of Giving” held earlier this year and Advancing Black Pathways and Advancing Hispanic and Latino Wealth Tours, which kick off this fall in Atlanta and Houston. JPMorgan Chase & Co. has also made its $30 billion Racial Equity Commitment a permanent part of its business beyond the original five-year plan.
Ex-Police Officer Sues Texas Town After Arrest for Sexual Assault
Freddie Douglas was fired after being arrested for sexual assault but claims prosecutors knew of a video that would have exonerated him.
Former El Campo, Texas, police officer Freddie Douglas has filed a civil rights lawsuit in federal court against the city of Manvel, Texas, claiming that police arrested him for rape without due process.
He also claims authorities knew about footage recorded in the apartment proving that the accuser had consensual sex with him and a friend, John Marks.
The alleged sexual encounter took place on Nov. 8, 2023, at Marks’ residence. The woman, who is white, accused both men, who are Black, of sexually assaulting her after she had sex with Douglas, who was celebrating his birthday.
“The Manvel Police Department had not even attempted to contact either Freddie Douglas or John Marks for their side of the story regarding (the woman’s) claims. However, within minutes of their arrest, both Douglas and Marks made it clear to the Manvel Police Department that there was proof that (the woman’s) claims were fabricated,” according to the lawsuit.
The lawsuit also states that the arrest was made without probable cause, without an interview by the Manvel Police Department, with police officers not checking a videotape of the interaction between the accuser and the men.
The New York Postidentified the accuser as Amanda Zawieruszynski, who lived across the street from Marks and was allegedly dating him then. She told police officers that she was assaulted by the men when she went over to Marks’ house for a late-night swim.
The lawsuit states, “No one became intoxicated. At some point, John Marks and AZ started having consensual sex in the pool. After that, AZ wanted to have sex with Freddie Douglas and did. This sexual activity was completely consensual on the part of all involved.”
Yet, the next month, Zawieruszynsk told police that Douglas and Marks forced themselves on her and that they needed to be locked up immediately, the papers state.
On Dec. 7, while Douglas was at work, the El Campo police chief told him the Manvel Police Department was arresting him. He was informed that it was due to Zawieruszynski’s claims.
Douglas said investigators from the Manvel Police Department never interviewed him. He told them about the footage that would prove his innocence, but it was ignored. The suit claims that the police officers who searched his home were overheard on the home security system talking about the footage, yet they never searched for it.
Douglas told the Brazoria County district attorney that Manvel cops never came to his agency to recommend charges. He added that if the video evidence had been examined, charges would never have been brought against the men. After the district attorney took the case before the grand jury, the charges against both men were thrown out.
ABC 13 reports that Marks has also filed a lawsuit against the City of Manvel, Police Chief Keith Traylor, two officers, and Zawieruszynski.
Keke Palmer Celebrates 31st Birthday With Son’s Dad While Denying She’s Pregnant
Palmer's ex-boyfriend and baby daddy, Darius Jackson, was also in attendance at her birthday celebration.
Keke Palmer is enjoying this new year of life without a new child on the way. The Nope actress denied brewing pregnancy rumors as she celebrated her birthday with ex-boyfriend Darius Jackson.
Palmer hosted a birthday bash over the weekend before her actual birthday on Aug. 26. In a lengthy Instagram post, the newly minted 31-year-old expressed her gratitude to God.
“I don’t want to be long. I just wanna be clear! I AM GRATEFUL TO GOD FOR ANOTHER YEAR,” she captioned the post. “I’m not here for a long time, but I am here for a community-rich time, and that’s what I have. It’s my birthday, but it’s my community’s birthday, too, because they are the ones that got me this far.”
Fans quickly noticed that one of the photos included a hand on Palmer’s stomach. This led to rumors about her expecting another child.
“That hand on the stomach almost made me think ‘we’ had another Keke coming,” wrote a fan under the entertainer’s post, as reported byPage Six.
However, the mother of one shut those claims down immediately.
Palmer responded, “Idk why her ass [put her hand there] haha cause honey the way I was drinking last night the ‘baby’ wouldn’t be making it 🥴.”
Despite the denial, fans did not think the claims would be far-fetched, considering Palmer’s ex and the father of her child, Darius Jackson, was also at the event. Jackson and Palmer welcomed their one-year-old son, Leodis, in February 2023.
While the co-parents also snapped a pic with their little one, lovingly nicknamed Leo, the two have not always been on the best terms. Palmer accused her former partner of physically assaulting her in November 2023. Released security footage, which showed Jackson assaulting Palmer, seemingly confirmed the allegations to the public.
However, the estranged parents have been seen out together, leading fans to speculate about their reconciliation. Although Palmer remained mum on that subject, she has recently been publicly friendly to her child’s father.
According to Newsweek, New York Mayor Eric Adams announced Aug. 26 that the city will launch a “Money in Your Pockets” initiative across 20 New York neighborhoods, in an effort to make living in the city more affordable.
New York residents have access to a suite of programs and initiatives that can help ease the burden of their cost of living, particularly those in low-income situations. However, many of the city’s programs remain underutilized, and Adams’ office wants those citizens plugged into programs they qualify for.
Our administration is helping put MONEY back into the pockets of working-class New Yorkers. From cutting child care costs to expanding tax credits and affordable internet, we've found dozens of ways to save eligible New Yorkers money.
“Today, we are launching our ‘Money in Your Pockets’ initiative to help New Yorkers find out which benefits they are eligible for and build on the billions of dollars we have helped put into the pockets of hard-working families,” Adams said in a statement. “We are building a city that expands opportunity and prosperity to every neighborhood and community because New Yorkers deserve their fair share, and we’re going to deliver that to them.”
According to Adams’ Chief of Staff Camille Joseph Varlack, “By connecting New Yorkers directly to critical resources and support, we’re taking another major step toward making our city more livable for everyone.”
Anne Williams-Isom, deputy mayor for Health and Human Services, said the emphasis on door-knocking in neighborhoods is aimed at connecting people with resources. She also encouraged New York residents to take time to learn about services that may benefit them.
Care.com Set To Dish Out $8.5M For ‘Unlawful Practices’ That Misled Customers
The online caregiving platform was accused by the FTC for having inflated numbers and deceptive subscription plans.
Care.com has accepted the Federal Trade Commission (FTC) proposal to pay an $8.5 million settlement for its “unlawful practices.”
According to the FTC, an online marketplace for caregiving services used exaggerated or “baseless” numbers to entice job seekers to join its site while also using misleading practices to keep members in the platform’s subscription plan. Care.com reportedly also inflated the number of jobs available on its website. The organization also proposed unconfirmed wages that job seekers could earn through these opportunities.
Additionally, Care.com allegedly encourages job seekers to purchase a subscription based on these numbers, promoting an abundance of jobs. However, the number of jobs listed would also include postings with “little to no chance” of hiring someone—moreover, the amount they could earn on average. While displayed on the website as between $13 and $14.25 an hour, the earnings were not tracked by Care.com at all.
The FTC released a statement on the settlement, claiming that the website’s marketing messages supported these untrue claims.
“Care.com used inflated job numbers and baseless earnings claims to lure caregivers onto its platform and used deceptive design practices to trap consumers in subscriptions,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “The order announced today puts a stop to these unlawful practices, returns millions of dollars to consumers, and helps ensure an honest marketplace for families looking for care and caregivers looking for work.”
As for the auto-renewing subscriptions, Care.com allegedly locked users into paying for the platform before accessing job opportunities or caregivers. Both speakers and posters need a paid subscription before discussing the work opportunity. Moreover, they allegedly took displeased users through multiple obstacles in their efforts to cancel their plans.
After the federal investigation, the FTC issued a plan for Care.com to rectify its unlawful practices toward customers. Now, the $8.5 million will go back to those who fell victim to Care.com’s misleading business model.
With the financial settlement, Care.com can only make substantiated claims about earnings and jobs available. It must not include listings that most likely would not lead to actual employment. Furthermore, the website must be “upfront” about the communication requirements before customers start a subscription. Cancelation methods will also face fewer issues.
