Over $15.5 Million in Refunds Delivered to Consumers Misled by Career Step’s Job Placement Claims
The Federal Trade Commission (“FTC”) is taking action to provide relief to consumers who were misled by the deceptive advertising practices of Career Step, an online career-training company. The FTC has announced that it is sending out more than $15.5 million in refunds to individuals, including servicemembers and their spouses, who were drawn in by false claims regarding job placement rates, employer partnerships, and career outcomes.
The FTC’s investigation revealed that Career Step targeted servicemembers and their spouses through misleading advertisements that overstated the success of its training programs. The company falsely promised lucrative job placements and career opportunities, citing non-existent partnerships with top employers and claiming job outcomes that did not align with reality. Additionally, Career Step used incentivized reviews to further boost its image and marketed its services through military-focused publications and events.
As part of a settlement, Career Step has paid the $15.5 million in refunds, which the FTC is using to compensate consumers who were harmed by these deceptive practices. The settlement also includes the cancellation of nearly $28 million in outstanding debts owed by students who enrolled between February 2020 and February 2023. However, it’s important to note that this settlement only applies to certain types of debts; federal student loans, private loans, and military benefits are not part of the agreement. Additionally, Career Step has agreed to halt any future deceptive advertising practices related to its educational products and services.
Refunds will be sent directly to 42,794 eligible consumers who enrolled in Career Step’s training programs and paid for their courses between August 7, 2018, and September 11, 2024. Those who received debt cancellation as part of the settlement were notified in August 2024. If you’re one of the affected consumers, it’s essential to cash your refund check within 90 days or redeem your PayPal payment within 30 days to avoid losing the funds.
This settlement serves as a clear reminder for both businesses to be vigilant when it comes to marketing practices and promises made by educational service providers. Transparency, honesty, and accountability are key to ensuring trust in the marketplace.
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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.