The online career-training company, Career Step, LLC, is facing serious repercussions for misleading advertising practices. The Federal Trade Commission (FTC) has mandated the company to pay a staggering $43.5 million in debt cancellation and cash refunds. This action comes in response to allegations that Career Step lured consumers, particularly servicemembers and their families, with deceptive ads promising inflated job placement rates, guaranteed employment, and partnerships with reputable companies – claims that starkly contrasted with reality. This development is crucial for prospective students researching Career Step Program Reviews and considering online vocational training.
FTC Orders Major Relief for Career Step Students
Career Step is set to provide $27.8 million in debt cancellation and $15.7 million in cash as redress to those affected by its deceptive marketing tactics. Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the gravity of the situation, stating, “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.” This case highlights the importance of critical evaluation when reading Career Step program reviews and any online career training program testimonials.
Deceptive Tactics Targeting Servicemembers
The FTC’s complaint details how Career Step, operating under names like CareerStep, CareerCert, and Carrus, aggressively marketed career training and certification programs in the healthcare sector. Their primary targets included servicemembers and their spouses. Since at least 2019, Career Step allegedly employed deceptive advertising across social media and its website. The company utilized sales representatives and even AI technology to aggressively persuade individuals to enroll in their programs. Marketing efforts extended to military-focused publications like Military.com and military-sponsored events, including job fairs. Crucially, the FTC found that Career Step made false claims regarding job placement, employment outcomes, externship opportunities, hiring partnerships, and program durations. These misleading claims were often amplified by deceptive, incentivized reviews, which are a key point of concern for anyone analyzing Career Step program reviews.
False Promises of Job Placement and Inflated Employment Rates
A central allegation in the FTC complaint is that Career Step representatives falsely guaranteed job placement. Claims of a dedicated “career placement team” finding the “perfect job” were commonplace. However, in reality, Career Step offered no actual job placement services. Their assistance was limited to basic resume advice and generic links to publicly available job postings. This starkly contrasts with the implied promises often found in marketing materials, making thorough Career Step program reviews essential for prospective students.
Furthermore, Career Step misrepresented employment statistics, claiming that “most learners” and “over 80% of its graduates” secured jobs in their field of study. These claims were based on optional surveys sent only to program completers. The vast majority of enrollees did not complete their programs and thus never received these surveys. Among those who did receive surveys, response rates were extremely low. For example, a 2020 survey showed that out of 9,330 enrollees and 2,126 program completers, only 5% of enrollees (or 24% of program completers) responded. This tiny sample size renders the claimed “over 80%” employment rate highly misleading and unreliable, a crucial detail often absent in overly positive Career Step program reviews that might be incentivized.
Misleading “Hiring Partner” Claims
Career Step’s website prominently featured logos of well-known companies like CVS and Walgreens as “Hiring Partners,” suggesting guaranteed job opportunities upon graduation. Sales representatives reinforced this, stating, “We have over 50,000 partnerships so we’ll help you find some place to work.” The FTC found that these “partnerships” were not related to job placement at all. Agreements with companies like CVS and Walgreens had no bearing on post-graduation employment prospects for Career Step graduates. This deceptive use of well-known brands to imply job guarantees is a significant red flag and should prompt careful scrutiny of any Career Step program reviews mentioning these partnerships.
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Career Step homepage example showcasing “Our Trusted Employer Network” logos, a key element in their deceptive marketing related to false partnership claims and inflated job placement promises. Consumers evaluating Career Step program reviews should be wary of such visual cues implying guaranteed employment.
Externship Deception and Program Duration Misrepresentations
The FTC also accused Career Step of falsely promising externships as part of their programs. Despite this representation, less than 10% of students in programs requiring externships were actually placed in one. The lack of externships prevented students from completing their programs, resulting in wasted time and money. This discrepancy between promise and reality is a critical point to consider when reading Career Step program reviews, particularly those related to healthcare programs that often require externships for certification or employment.
Furthermore, Career Step misled students about program completion times, claiming programs could be finished in “four months or less.” In reality, most students took significantly longer, and many never completed their programs due to website issues, unresponsive representatives, and the aforementioned externship placement failures. Students were often pressured to pay for program extensions, costing up to $999, further adding to their financial burden. These issues with program duration and unexpected costs are recurring themes in negative Career Step program reviews and should be carefully considered.
Deceptive Incentivized Review Program
Career Step implemented a deceptive incentivized review program to generate positive reviews on platforms like BBB, Google, and Trustpilot. Students were offered free program extensions – up to three months of extra time – in exchange for posting reviews on these sites. They were required to provide proof of their reviews to Career Step. These incentivized reviews falsely presented themselves as genuine, unbiased opinions from ordinary students. This practice significantly undermines the trustworthiness of online reviews and is a crucial factor to consider when evaluating Career Step program reviews or reviews for any online program. Incentivized reviews are inherently biased and should not be taken at face value.
Settlement Terms and Prohibited Practices
The settlement, pending court approval, mandates Career Step to pay $15.7 million for consumer redress and cancel approximately $27.8 million in debts for students enrolled between February 2020 and February 2023. The stipulated order also strictly prohibits Career Step from engaging in deceptive advertising for any educational product or service in the future.
Specifically, Career Step is barred from misrepresenting:
- Employment, hiring, or career prospects.
- The number or percentage of consumers who obtain employment.
- Whether any individual was employed, hired, or obtained a job as a result of Career Step’s programs.
- Partnerships with any companies or employers.
- Career services.
- Externship programs.
- Program duration.
- Total costs or terms of programs.
- The objectivity or impartiality of any content (including reviews).
- Any fact material to consumers regarding their services.
Additionally, Career Step must notify third-party platforms hosting incentivized reviews about the FTC action and request the removal of these deceptive testimonials. This action by the FTC serves as a strong warning against deceptive marketing practices in the online education sector and underscores the importance of critically evaluating information, especially Career Step program reviews and similar online program testimonials, before making enrollment decisions. Prospective students should always seek independent verification of claims and be wary of promises that seem too good to be true.
The Commission vote authorizing the complaint and settlement was 5-0. The case will be filed in the U.S. District Court for the Northern District of Georgia.
Note: The Commission issues a complaint when it has “reason to believe” that violations of the law are occurring and that action is in the public interest. Stipulated final orders become legally binding upon court approval.
