When considering a career change or upskilling, online career training programs can seem like a convenient and efficient route. However, it’s crucial to approach these programs with caution and do thorough research. The Federal Trade Commission (FTC) recently took action against Career Step, LLC, an online career-training company, highlighting the importance of this due diligence. This Career Step program review delves into the FTC’s findings and what it means for prospective students of online education platforms.
The FTC has ordered Career Step to pay a staggering $43.5 million in debt cancellation and cash refunds. This action comes in response to charges that the company engaged in deceptive advertising practices, specifically targeting servicemembers and their families. The FTC alleged that Career Step lured consumers with false promises of inflated employment rates, guaranteed job placements, and partnerships with well-known companies.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the vulnerability of servicemembers and their families in this context: “Servicemembers and their families make sacrifices every day to protect our freedoms. We owe it to them to make sure that when they look to use their hard-earned benefits to further their education, they get facts and not fantasy.”
According to the FTC’s complaint, Career Step, operating under various names including CareerStep, CareerCert, and Carrus, heavily marketed career training and certification programs in the healthcare industry. Their target audience included servicemembers and their spouses, and their marketing channels were widespread, encompassing social media, their website, military-focused publications like Military.com, and military job fairs. The company allegedly used deceptive tactics, including incentivized reviews and AI technology, to persuade individuals to enroll in their programs.
One of the most significant allegations against Career Step is their false claims regarding job placement assistance. The FTC complaint details how Career Step representatives falsely promised to find consumers their “perfect job” through a dedicated “career placement team.” In reality, Career Step offered no genuine job placement services. Their assistance was limited to basic resume advice and links to publicly available job postings – resources easily accessible to anyone without enrolling in an expensive program.
Furthermore, Career Step made misleading claims about employment outcomes. They stated that “most learners” and “more than 80% of its graduates” secured employment in their field of study. However, these figures were based on an optional survey sent only to program completers, a small fraction of their total enrollees. The FTC found that most participants never completed the programs, and even among those who did, survey response rates were extremely low, skewing the data and presenting an inaccurate picture of graduate employment success. For example, a 2020 survey revealed that out of 9,330 enrollees, only 5% completed the survey, highlighting the unreliability of Career Step’s employment statistics.
Another deceptive tactic employed by Career Step was the false representation of partnerships with leading healthcare companies. Their website prominently displayed logos of well-known companies like CVS and Walgreens, implying guaranteed hiring pathways. Sales representatives reinforced this deception, claiming “over 50,000 partnerships” to facilitate job placement. In truth, these agreements had no bearing on post-graduation job opportunities, serving merely as marketing ploys to attract unsuspecting students.
The FTC also exposed Career Step’s fraudulent promises concerning externships. Students were led to believe that externships were an integral part of their programs and would be arranged by Career Step. Contrary to these assurances, less than 10% of students in programs requiring externships were ever placed in one. This lack of externship placement prevented students from completing their programs, rendering their investment of time and money futile.
Adding to the deceptive practices, Career Step misrepresented the program completion timelines. They advertised program durations of “four months or less,” despite the reality that most students took significantly longer, if they completed the program at all. Students encountered numerous obstacles, including website issues and unresponsive representatives, further delaying their progress. The failure to secure externships also contributed to program expiration, forcing students to pay additional fees, sometimes as high as $999, for program extensions.
Finally, the FTC uncovered Career Step’s deceptive incentivized review program. To inflate their online reputation, Career Step offered students free program extensions in exchange for positive reviews on platforms like BBB, Google, and Trustpilot. These reviews, often appearing as genuine testimonials, were in fact incentivized and did not reflect the true experiences of ordinary, uncompensated students. This practice further misled prospective students relying on online reviews to make informed decisions.
The settlement reached with the FTC requires Career Step to pay $15.7 million for consumer redress and cancel approximately $27.8 million in debts owed by students enrolled between February 2020 and February 2023. Furthermore, Career Step is permanently prohibited from engaging in deceptive advertising for any educational product or service. The stipulated order explicitly forbids misrepresentations regarding employment prospects, partnerships, career services, externship programs, program duration, and the objectivity of online content. Career Step is also mandated to notify third-party platforms hosting incentivized reviews about the FTC’s action and request the removal of these deceptive testimonials.
This FTC action against Career Step serves as a critical reminder for anyone considering online career training programs, including coding programs or any other field. It underscores the necessity of skepticism and thorough investigation before enrolling in any program. Prospective students should be wary of programs that promise guaranteed job placements or boast unrealistically high employment rates. Always verify claims, scrutinize online reviews for potential manipulation, and seek independent validation of program effectiveness and industry partnerships. The Career Step case is a stark warning: not all online career training paths lead to genuine career advancement, and some may lead to significant financial loss and disappointment. Always prioritize credible and transparent education providers and be diligent in your research to avoid falling victim to deceptive schemes.
