Online Career Training Company to Pay $43.5 Million for Deceptive Practices Targeting Service Members

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  • The FTC reached a settlement with Career Step, LLC to resolve allegations that the company violated the FTC Act, the Gramm-Leach-Bliley Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, and the Telemarketing Sales Rule by making deceptive statements when promoting its online career-training services.
  • According to the FTC’s complaint, Career Step used deceptive ads, incentivized reviews, and other false claims to lure consumers, specifically servicemembers and their families, into enrolling in the company’s career training and certification programs for jobs in the healthcare industry.  The FTC alleged that Career Step made false claims about job placement and outcomes, externships, hiring partnerships with prominent companies, and the duration of its programs.
  • The settlement requires Career Step to pay $15.7 million in consumer redress, cancel approximately $27.8 million in debt owed by certain students, and notify all third-party platforms or websites displaying reviews written by consumers who received free services in exchange for those reviews about the FTC’s action against the company.  Additionally, Career Step is barred from deceptive advertising of any educational product or service and is subject to ongoing compliance and record-keeping requirements, along with other forms of relief.
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