FTC: Lead Generator Mislead Job Seekers by Acting as Employment Screener
Gigats.com posted job listings on its website and instead sent applicant information to education programs
A lead generator is in hot water with federal regulators for misleading job seekers into thinking they were being pre-screened for open positions when in fact the company was steering them towards education programs.
The operators of Gigats.com have settled a Federal Trade Commission (FTC) lawsuit that alleges the company gathered information for lead generation for post-secondary schools and career training programs.
The company and its operators are barred from doing similar business and must pay $360,000 of a partially suspended $9.2 million judgement.
According to the FTC's complaint, Gigats.com gathering online job announcements posted by multinational companies, government agencies and other employers, and summarized them on its website, which appeared to accept applications for the jobs. Gigat.com did this without any authorization from the companies that posted the initial job listing.
When job seekers submitted their information, Gigat.com failed to pass it on to the companies doing the hiring. Instead, they were directed to call Gigats.com's employment specialists who then steered job seekers toward enrolling in education programs that had paid for consumer leads. These programs typically paid $22 to $125 for leads that met their enrollment requirements.