The Federal Trade Commission is sending more than $15.5 million in refunds to consumers, including servicemembers and their spouses, lured by online career-training company Career Step’s deceptive ads and false claims about its training programs.
The FTC alleged that Career Step, LLC targeted servicemembers and their spouses using false claims about job placement and career outcomes, externships, and hiring partnerships with prominent companies. The company used deceptive incentivized reviews to promote its services and marketed its services through military-focused publications, such as Military.com, and events sponsored by the military, the FTC alleged.
As part of a settlement, Career Step paid more than $15.5 million that the FTC is using to compensate some students harmed by the company’s deceptive advertising. The settlement also required Career Step to cancel nearly $28 million in unpaid balances owed by current or former students who enrolled between February 2020 and February 2023. Other debts, such as federal and private student loans or military benefits, are not affected by this settlement. The stipulated order also prohibits Career Step from deceptively advertising any educational product or service in the future.
The FTC is sending checks and PayPal payments to 42,794 affected consumers who enrolled, and paid for training between August 7, 2018 and September 11, 2024 and who did not get debt cancellation as part of this settlement. Career Step sent letters in August 2024 to notify people who got debt cancellation. Individuals who receive a refund should cash their checks within 90 days, as indicated on the check, or redeem their PayPal payments within 30 days.
Consumers who have questions about their payment should contact the refund administrator, Simpluris, at 866-675-2824, or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.
The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2024, FTC actions led to more than $337 million in refunds to consumers across the country.
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