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Texas has launched an investigation into LinkedIn over allegations the company advertised and profited from a list of fake or misleading jobs known as “ghost jobs,” the attorney general's office announced Tuesday.
The investigation focused on claims that job seekers who paid LinkedIn Premium fees may have been offered listings that were not legitimate hiring opportunities, according to the attorney general's office.
The attorney general's office defines a “ghost job” as a listing that does not match an actual open position or is posted despite the employer having no immediate intentions to fill the role, according to the attorney general's office.
According to the attorney general's office, LinkedIn does not disclose that some listings may not represent active hiring opportunities, leading some consumers to pay for Premium subscriptions based on misleading claims about the platform's job market.
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Texas Attorney General Ken Paxton announced an investigation into LinkedIn regarding allegations involving “ghost jobs” advertised on the platform. (Reuters)
Texas officials said LinkedIn Premium Career and Premium Business subscriptions cost about $39.99 and $69.99 per month, respectively.
“I will use all the resources available in my office to help job-seeking Texans find and secure real employment opportunities,” Texas Attorney General Ken Paxton said in a statement.
“LinkedIn has a duty to provide advertising services and ensure that consumers who pay for a Premium subscription get access to legitimate job postings,” he continued. “I'm investigating how LinkedIn misled Texans by promoting and profiting from 'ghost jobs' while marketing itself as a trusted job-finding platform.”
Paxton said his office has issued a Civil Investigative Demand seeking documents, data and internal communications related to LinkedIn's advertising, marketing, verification processes and presentations regarding its Premium subscription services and job listings.
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Texas is investigating LinkedIn over allegations that some job seekers paid for Premium subscriptions while encountering “ghost jobs.” (Jonathan Raa/NurPhoto via Getty Images/Getty Images)
In response to the investigation, LinkedIn defended the job market, saying that listings on the platform must be truthful and accurate.
“LinkedIn's mission is to help job seekers find their next role, and our policies require that job postings be truthful and accurately represented,” a LinkedIn spokesperson told FOX Business. “For many jobs posted on LinkedIn, we also display the company's response time and whether it is currently reviewing candidates, which helps job seekers know if it is a current, active job opportunity.”
“We actively implement our policies and continually invest in new features such as job verification, recruiters and company pages to help LinkedIn members identify more promising opportunities,” the spokesperson added.
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LinkedIn has defended the job market after Texas launched an investigation into allegations it included fake or misleading job listings. (Image credit by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images/Getty Images)
The attorney general's investigation did not result in formal charges or a lawsuit.
