Texas launched an investigation into LinkedIn following allegations that the company advertised and profited from false or misleading job offers known as “ghost jobs,” the attorney general’s office announced Tuesday.
The investigation focuses on claims that job seekers who paid for LinkedIn Premium subscriptions may have been introduced to listings that were not legitimate hiring opportunities, according to the attorney general’s office.
The Attorney General’s Office describes a “ghost job” as an offer that either does not match an actual vacancy or is posted when an employer has no immediate intention to fill the position, 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 Memberships based on allegedly misleading representations in the platform’s job marketplace.
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Texas Attorney General Ken Paxton announced an investigation into LinkedIn following allegations involving “ghost jobs” advertised on the platform. (Reuters)
Texas officials said LinkedIn Premium Career and Premium Business subscriptions cost approximately $39.99 and $69.99 per month, respectively.
“I will use every resource available to 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 the services it advertises and to ensure that consumers paying Premium subscriptions have access to legitimate job opportunities,” he continued. “I am investigating whether LinkedIn misled Texans by promoting and profiting from ‘ghost jobs’ while presenting itself as a trusted platform for finding employment.”
Paxton said his office issued a civil investigative request seeking documents, data and internal communications related to LinkedIn’s advertising, marketing, verification practices and representations regarding its Premium subscription services and job postings.
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Texas is investigating LinkedIn over allegations that some job seekers paid for premium memberships while encountering so-called “ghost jobs.” (Jonathan Raa/NurPhoto via Getty Images / Getty Images)
In response to investigationLinkedIn has defended its job market, saying that ads on the platform must be authentic and accurately represented.
“LinkedIn’s goal is to help job seekers find their next role, and our policies require that posted job openings are authentic 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 they are currently reviewing candidates, which helps job seekers know if this is a current and active job opportunity.”
“We actively enforce our policies and continually invest in new features like job, recruiter and company page verification to help LinkedIn members identify more trusted opportunities,” the spokesperson added.
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LinkedIn defended its job market after Texas launched an investigation into allegations involving false or misleading job postings. (Photo illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
The attorney general’s investigation did not result in any formal charges or prosecutions.