Indeed Forced Arbitration & bundling of consent

Background

Indeed, owned by Recruit Holdings, operates as one of the world's largest job search platforms with more than 350 million monthly unique visitors. The platform had large operational changes in 2024-2025, including laying off over 4,500 employees (2,200 in March 2023, 1,000 in May 2024, & 1,300 in July 2025).

CEO Chris Hyams resigned on June 2, 2025, after six years leading the company, replaced by former Indeed CEO Hisayuki "Deko" Idekoba. Recruit Holdings reported Q1 2024 HR Technology revenue falling 2.5% year-over-year to $1.83 billion, with U.S. revenue declining 5.0%.

Incident

On August 22, 2025, Indeed updated its Terms of Service to include mandatory binding arbitration provisions in Section D.12 that apply to all U.S. users. The update coincided with the platform's use of a bundled consent checkbox during job applications & large regulatory changes following the vacation of the FCC's one-to-one consent rule.

Bundled consent checkbox

Indeed employs a bundled consent mechanism during job applications that states: "Check this box to receive calls or text messages at the number you provided from employers you've applied to, & Indeed." This single checkbox combines two distinct types of consent:

• Permission for employers to contact applicants about job opportunities
• Permission for Indeed to send its own marketing & platform communications

Checkbox to agree to receive text messages from indeed AND employers; cannot opt out of indeed text messages while opting into employer text messages.

This bundled approach prevents users from consenting to employer communications without simultaneously agreeing to receive Indeed's marketing messages. Legal experts note that "it is impermissible to use a 'marketing partners' list or other technique that bundles consent for multiple sellers into a single consent action."

Arbitration agreement implementation

Section D.12 of the Terms requires users to waive their rights to pursue disputes in court, participate in jury trials, & engage in class, collective, or representative actions. The arbitration agreement applies retroactively to disputes arising before the clause was introduced, unless users had already notified Indeed of the dispute.

Forced arbitration notice sent out to Indeed users

The arbitration provisions cover disputes "arising out of or relating in any way to the Site... any communications you send or receive... the Terms or prior versions of the Terms, or any aspect of your relationship with Indeed," including disputes between users as well as with Indeed itself.

Opt-out process

Job seekers are provided a 30-day window to opt out of the arbitration agreement by sending notice to [email protected]. The opt-out requires:

• A statement of intent to opt out
• Full name
• Mailing address
• Phone number
• All email addresses linked to Indeed accounts
• Date of the notice

Legal & regulatory context

FCC one-to-one consent rule vacated

On January 24, 2025, the U.S. Court of Appeals for the Eleventh Circuit vacated the FCC's one-to-one consent rule in Insurance Marketing Coalition Limited v. Federal Communications Commission. The court held that the FCC exceeded its statutory authority under the Telephone Consumer Protection Act (TCPA) by imposing restrictions beyond the statutory requirement of "clear & unmistakable" consent.

Despite the rule's vacation, fundamental TCPA principles prohibiting bundled consent remain in effect. Marketing experts emphasize this point:

"consent to contact cannot be implied or bundled with other agreements. It should be a standalone opt-in."

TCPA compliance requirements

Current TCPA law maintains strict requirements for Prior Express Written Consent (PEWC), including:

• Consent must be obtained separately for each marketing entity
• Cannot be bundled with other agreements
• Must be clear & unambiguous

Penalties range from $500 to $1,500 per violation, with significant increases in TCPA litigation in recent years. TCPA class action filings reached 2,788 cases in 2024 (a 67% increase from 2023) with January 2025 showing a 250% increase in class action filings year-over-year.

Arbitration enforcement precedents

Courts have previously enforced Indeed's arbitration agreements. In Gilbert v. Indeed, Inc. (2021), the Western District of Texas compelled arbitration of sexual harassment claims under the Federal Arbitration Act.

Business context

Financial pressures & monetization changes

Recruit Holdings reported declining performance:

• Q1 2024 HR Technology revenue: $1.83 billion (down 2.5% YoY)
• U.S. HR Tech revenue: $1.25 billion (down 5.0% YoY)
• Paid job ads on Indeed: down 50% YoY

Indeed eliminated free job postings for companies using automated posting systems in October 2024, forcing employers into paid sponsorship models costing $300-1,000 per posting.

Consumer impact

Platform exploitation by scammers

The Federal Trade Commission reports task scams caused $220 million in losses in the first six months of 2024, representing nearly 40% of all job scam reports. These scams increased from zero reports in 2020 to 5,000 in 2023, then quadrupled to approximately 20,000 in the first half of 2024.

Consumer complaints

Better Business Bureau records show complaints about Indeed's information sharing practices, with one user stating: "Filling out job applications on Indeed has caused a leak in my information as well as others emails from unknown people & or companies never applied for."

Users report receiving "1000 spam calls" after posting resumes on Indeed. Indeed maintains an A+ Better Business Bureau rating & 3/5 stars on Trustpilot from 12,123+ reviews.

Industry comparison

Consent practices across platforms

Major job platforms have adopted unbundled consent mechanisms:

• LinkedIn: Uses separate, granular consent checkboxes distinguishing between recruiter outreach & LinkedIn marketing
• Monster/CareerBuilder: Following their 2024 merger, overhauled their consent structure with separate controls for different communication types
• ZipRecruiter: Has distinct opt-ins for their marketing versus employer communications
• Glassdoor: In spite of controversial 2024 changes requiring real names, glassdoor keeps separate consent streams

Privacy expert perspectives

The Electronic Frontier Foundation emphasizes that bundled consent represents a "dark pattern" that subverts user autonomy. The Federal Trade Commission's 2022 report "Bringing Dark Patterns to Light" specifically identified bundling as a problematic practice.

GDPR requirements explicitly mandate granular consent with separate checkboxes for distinct purposes. Privacy experts note that "consent must be freely given, specific, informed, & unambiguous" & cannot be bundled.

Company response

Indeed has not issued standalone press releases addressing the Terms of Service changes or bundled consent practices. The company's official communication consisted of updates to the Indeed Legal page in early September 2025, explaining the Terms had changed, highlighting the arbitration clause, & noting the opt-out option.

The company's Terms of Service state it is users' "sole responsibility to comply with all TCPA guidelines," shifting liability to employers while emphasizing Indeed is not responsible for employer communication practices.

Regarding scams, Indeed states it "never reach[es] out to job seekers to offer employment through phone calls, text messages, or apps like WhatsApp or Telegram."

the end

Indeed's bundled consent checkbox creates TCPA compliance risks despite the January 2025 vacation of the FCC's one-to-one consent rule. Legal experts from Bryan Cave Leighton Paisner note that "consumers must provide individual consent for contact to each specific seller," making Indeed's bundled approach legally problematic even after regulatory changes.

The practice appears increasingly outdated compared to industry standards, with major competitors implementing granular consent mechanisms. Research indicates 99% of consumers are unaware they have agreed to arbitration clauses, with consumer win rates in forced arbitration dropping to just 0.7%.

The Economic Policy Institute found mandatory arbitration covers 56.2% of U.S. employees, with 98% of workers' claims for rights violations disappearing when the only option is private, forced arbitration.

Consumer advocates including Public Citizen identify mandatory arbitration clauses as "discriminatory & unfair," noting most people subject to pre-dispute arbitration clauses do not know they have waived court access rights.

Timeline

• 2023-03-22: Indeed lays off 2,200 employees (15% of workforce)
• 2024-05-08: Indeed lays off 1,000 employees (8% of workforce)
• 2024-10-01: Indeed eliminates free job postings for automated posting systems
• 2025-01-24: Eleventh Circuit vacates FCC's TCPA one-to-one consent rule
• 2025-06-02: CEO Chris Hyams resigns, replaced by Hisayuki Idekoba
• 2025-07-25: Indeed & Glassdoor lay off 1,300 employees
• 2025-08-22: Indeed publishes updated Terms of Service with arbitration agreement
• 2025-09-07: Indeed updates Legal page describing Terms changes