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Company Raimondo Pushed During COVID Cited by Feds, Paying $8.5M
During COVID, former Rhode Island Governor Gina Raimondo closed Rhode Island’s daycare centers and repeatedly promoted a privately owned out-of-state company that had powerful investors and a track record of alleged violations.
On Tuesday, the Federal Trade Commission (FTC) announced that it is sending refunds totaling more than $8.1 million to consumers who are harmed by online child and older adult care gig platforms, Care.com (Care). The company will pay $400,000 to the FTC. The total amount paid is $8.5 million.
The FTC alleged that Care used deceptive advertising that vastly overstated the number of jobs available on its platform and made unsubstantiated claims about how much job seekers could expect to earn through these jobs. The complaint also alleged that Care used unlawful tactics to prevent consumers — both job posters and job seekers — from canceling their subscriptions.
But in 2020, despite enforcement actions being taken against the company in other states Raimondo repeatedly pushed for Rhode Islanders to sign up for Care.com’s services.
Raimondo Closed RI Childcare Providers and Pushed Care.com - On Same Day
Raimondo pushed Care.com daily to Rhode Islanders and urged them to sign up. In her administration’s daily press briefings, Care.com was a key message point.
In more than a dozen press conferences and press briefing materials, Raimondo pushed Care.com even after GoLocal raised questions about the company being cited for violations and being investigated in other states.
While closing Rhode Island childcare facilities, Raimondo was endlessly pushing Care.com and its “extensive background and safety checks”
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