Indeed Forced Arbitration & bundling of consent: Difference between revisions

TCPA compliance requirements: corrected citation, used wrong link, i mixed it up.
Tag: 2017 source edit
fixed references
Tag: 2017 source edit
 
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==Background==
==Background==
'''Indeed''', owned by [[Recruit Holdings]], operates as the world's largest job search platform with over 330 million monthly users.<ref>{{cite web |url=https://www.indeed.com/about |title=About Indeed |website=Indeed |access-date=2025-09-10}}</ref> 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).<ref>{{cite web |url=https://www.staffingindustry.com/news/global-daily-news/indeed-lay-2200-workers-reports-job-market-poised-continue-cooling |title=Indeed to lay off 2,200 workers, reports job market poised to continue cooling |website=Staffing Industry |date=2023-03-22 |access-date=2025-09-10}}</ref><ref>{{cite web |url=https://www.hrdive.com/news/indeed-layoffs-job-market/716166/ |title=Indeed lays off 1K employees, citing 'global slow-down' in hiring |website=HR Dive |date=2024-05-08 |access-date=2025-09-10}}</ref><ref>{{cite web |url=https://www.cbsnews.com/news/indeed-glassdoor-layoffs-ai-job-search/ |title=Indeed & Glassdoor to lay off 1,300 workers as AI shakes up job search business |website=CBS News |date=2025-07-25 |access-date=2025-09-10}}</ref>
'''Indeed''', owned by [[Recruit Holdings]], operates as one of the world's largest job search platforms with '''more than 350 million monthly unique visitors'''.<ref>{{cite web |url=https://www.indeed.com/news/releases/indeed-introduces-specialist-media-networkshelping-employers-reach-more-skilled-professionals-across-industry-specific-sites-to-hire-for-hard-to-fill-roles |title=Indeed Introduces Specialist Media Networks, Helping Employers Reach More Skilled Professionals Across Industry-Specific Sites to Hire for Hard-to-Fill Roles |website=Indeed Press Room |date=2024-01-16 |access-date=2025-09-10}}</ref> 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).<ref>{{cite web |url=https://www.staffingindustry.com/news/global-daily-news/indeed-lay-2200-workers-reports-job-market-poised-continue-cooling |title=Indeed to lay off 2,200 workers, reports job market poised to continue cooling |website=Staffing Industry |date=2023-03-22 |access-date=2025-09-10}}</ref><ref>{{cite web |url=https://www.hrdive.com/news/indeed-layoffs-job-market/716166/ |title=Indeed lays off 1K employees, citing 'global slow-down' in hiring |website=HR Dive |date=2024-05-08 |access-date=2025-09-10}}</ref><ref>{{cite web |url=https://www.cbsnews.com/news/indeed-glassdoor-layoffs-ai-job-search/ |title=Indeed & Glassdoor to lay off 1,300 workers as AI shakes up job search business |website=CBS News |date=2025-07-25 |access-date=2025-09-10}}</ref>


CEO Chris Hyams resigned on June 2, 2025, after six years leading the company, replaced by former Indeed CEO Hisayuki "Deko" Idekoba.<ref>{{cite web |url=https://techcrunch.com/2025/06/03/indeed-ceo-chris-hyams-resigns-hands-reins-over-to-former-chief-hisayuki-idekoba/ |title=Indeed CEO Chris Hyams resigns, hands reins over to former chief Hisayuki Idekoba |website=TechCrunch |date=2025-06-03 |access-date=2025-09-10}}</ref> 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%.<ref>{{cite web |url=https://www.staffingindustry.com/news/global-daily-news/recruit-q1-revenue-falls-indeed-sees-decline-in-job-postings |title=Recruit Q1 revenue falls, Indeed sees decline in job postings |website=Staffing Industry |date=2024-08-07 |access-date=2025-09-10}}</ref>
CEO Chris Hyams resigned on June 2, 2025, after six years leading the company, replaced by former Indeed CEO Hisayuki "Deko" Idekoba.<ref>{{cite web |url=https://techcrunch.com/2025/06/03/indeed-ceo-chris-hyams-resigns-hands-reins-over-to-former-chief-hisayuki-idekoba/ |title=Indeed CEO Chris Hyams resigns, hands reins over to former chief Hisayuki Idekoba |website=TechCrunch |date=2025-06-03 |access-date=2025-09-10}}</ref> 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%.<ref>{{cite web |url=https://www.staffingindustry.com/news/global-daily-news/recruit-q1-revenue-falls-indeed-sees-decline-in-job-postings |title=Recruit Q1 revenue falls, Indeed sees decline in job postings |website=Staffing Industry |date=2024-08-07 |access-date=2025-09-10}}</ref>
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* Permission for Indeed to send its own marketing & platform communications
* Permission for Indeed to send its own marketing & platform communications
[[File:Indeed bundled consent.jpg|alt=Checkbox to agree to receive text messages from indeed AND employers; cannot opt out of indeed text messages while opting into employer text messages.|thumb|Checkbox to agree to receive text messages from indeed '''''AND''''' employers; cannot opt out of indeed text messages while opting into employer text messages. ]]
[[File:Indeed bundled consent.jpg|alt=Checkbox to agree to receive text messages from indeed AND employers; cannot opt out of indeed text messages while opting into employer text messages.|thumb|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'''.<ref>{{cite web |url=https://mslawgroup.com/tcpa-requirements-faq/ |title=TCPA Compliance, Opt-out & Consent Requirements |website=M&S Law Group |access-date=2025-09-10}}</ref> 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."<ref>{{cite web |url=https://activeprospect.com/blog/express-written-consent/ |title=The complete TCPA express written consent checklist |website=ActiveProspect |access-date=2025-09-10}}</ref>
'''This bundled approach prevents users from consenting to employer communications without simultaneously agreeing to receive Indeed's marketing messages'''.<ref>{{cite web |url=https://mslawgroup.com/tcpa-requirements-faq/ |title=TCPA Compliance, Opt-out & Consent Requirements |website=Mac Murray & Shuster LLP |access-date=2025-09-10}}</ref> 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."<ref>{{cite web |url=https://mslawgroup.com/tcpa-requirements-faq/ |title=TCPA Compliance, Opt-out & Consent Requirements |website=Mac Murray & Shuster LLP |access-date=2025-09-10}}</ref>


===Arbitration agreement implementation===
===Arbitration agreement implementation===
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==Legal & regulatory context==
==Legal & regulatory context==
===FCC one-to-one consent rule vacated===
===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''.<ref>{{cite web |url=https://perkinscoie.com/insights/update/fccs-one-one-consent-rule-vacated-whats-next-tcpa-compliance |title=FCC's One-to-One Consent Rule Vacated: What's Next for TCPA Compliance? |website=Perkins Coie |date=2025-01-27 |access-date=2025-09-10}}</ref> 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.<ref>{{cite web |url=https://epic.org/eleventh-circuit-vacates-robocall-consent-protection-before-it-takes-effect/ |title=Eleventh Circuit Vacates Robocall Consent Protection Before It Takes Effect |website=EPIC |date=2025-01-24 |access-date=2025-09-10}}</ref>
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''.<ref>{{cite web |url=https://perkinscoie.com/insights/update/fccs-one-one-consent-rule-vacated-whats-next-tcpa-compliance |title=FCC's One-to-One Consent Rule Vacated: What's Next for TCPA Compliance? |website=Perkins Coie |date=2025-01-27 |access-date=2025-09-10}}</ref> 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.<ref>{{cite web |url=https://epic.org/eleventh-circuit-vacates-robocall-consent-protection-before-it-takes-effect/ |title=Eleventh Circuit Vacates Robocall Consent Protection Before It Takes Effect |website=Electronic Privacy Information Center (EPIC) |date=2025-01-24 |access-date=2025-09-10}}</ref>


Despite the rule's vacation, fundamental TCPA principles prohibiting bundled consent remain in effect. Marketing experts emphasize this point:
Despite the rule's vacation, fundamental TCPA principles prohibiting bundled consent remain in effect. Marketing experts emphasize this point:
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* Must be clear & unambiguous<ref>{{cite web |url=https://www.pcrecruiter.net/site/2025/01/16/recruiters-guide-to-texting/ |title=The Recruiter's Guide to the TCPA & Texting |website=PCRecruiter |date=2025-01-16 |access-date=2025-09-10}}</ref>
* Must be clear & unambiguous<ref>{{cite web |url=https://www.pcrecruiter.net/site/2025/01/16/recruiters-guide-to-texting/ |title=The Recruiter's Guide to the TCPA & Texting |website=PCRecruiter |date=2025-01-16 |access-date=2025-09-10}}</ref>


Penalties range from '''$500 to $1,500 per violation''', with significant increases in TCPA litigation in recent years.<ref>{{cite web |url=https://www.dnc.com/blog/what-tcpa-lawsuit-can-cost-you |title=What a TCPA Lawsuit Can Cost You |website=DNC |access-date=2025-09-10}}</ref> TCPA class action filings reached 2,788 cases in 2024 (67% increase from 2023) with January 2025 showing a 250% increase in class action filings year-over-year.<ref>{{cite web |url=https://tcpaworld.com/2025/03/06/tcpa-class-action-filings-explode-the-massive-final-numbers-are-in-for-2024-and-january-2025-numbers-are-insane/ |title=TCPA CLASS ACTION FILINGS EXPLODE: The MASSIVE Final Numbers Are In for 2024–And January, 2025 Numbers Are INSANE |website=TCPAWorld |date=2025-03-06 |access-date=2025-09-10}}</ref>
Penalties range from '''$500 to $1,500 per violation''', with significant increases in TCPA litigation in recent years.<ref>{{cite web |url=https://www.dnc.com/blog/what-tcpa-lawsuit-can-cost-you |title=What a TCPA Lawsuit Can Cost You |website=DNC.com |access-date=2025-09-10}}</ref> 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.<ref>{{cite web |url=https://tcpaworld.com/2025/03/06/tcpa-class-action-filings-explode-the-massive-final-numbers-are-in-for-2024-and-january-2025-numbers-are-insane/ |title=TCPA CLASS ACTION FILINGS EXPLODE: The MASSIVE Final Numbers Are In for 2024–And January, 2025 Numbers Are INSANE |website=TCPAWorld |date=2025-03-06 |access-date=2025-09-10}}</ref>


===Arbitration enforcement precedents===
===Arbitration enforcement precedents===
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==Company response==
==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 update emails sent to users in early September 2025, explaining the Terms had changed, highlighting the arbitration clause, & noting the opt-out option.<ref>{{cite web |url=https://www.indeed.com/legal |title=Terms of Service Update email (Sept 2025) |website=Indeed |date=2025-09-07 |access-date=2025-09-10}}</ref>
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.<ref>{{cite web |url=https://www.indeed.com/legal |title=Indeed Legal: Terms of Service |website=Indeed |date=2025-09-07 |access-date=2025-09-10}}</ref>


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.<ref>{{cite web |url=https://www.indeed.com/legal |title=Terms of Service |website=Indeed Legal |date=2025-08-22 |access-date=2025-09-10}}</ref>
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.<ref>{{cite web |url=https://www.indeed.com/legal |title=Terms of Service |website=Indeed Legal |date=2025-08-22 |access-date=2025-09-10}}</ref>
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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."<ref>{{cite web |url=https://support.indeed.com/hc/en-us/articles/28360944766221-Text-Messages-or-Phone-Calls-Claiming-To-Be-Indeed-It-Might-Be-a-Scam |title=Text Messages or Phone Calls Claiming To Be Indeed? It Might Be a Scam |website=Indeed Support |access-date=2025-09-10}}</ref>
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."<ref>{{cite web |url=https://support.indeed.com/hc/en-us/articles/28360944766221-Text-Messages-or-Phone-Calls-Claiming-To-Be-Indeed-It-Might-Be-a-Scam |title=Text Messages or Phone Calls Claiming To Be Indeed? It Might Be a Scam |website=Indeed Support |access-date=2025-09-10}}</ref>


==Analysis==
==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.<ref>{{cite web |url=https://www.bclplaw.com/en-US/events-insights-news/fccs-new-11-consent-rule-spells-trouble-in-2025.html |title=FCC's new 1:1 consent rule spells trouble in 2025 |website=Bryan Cave Leighton Paisner |date=2025-01-10 |access-date=2025-09-10}}</ref>
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.<ref>{{cite web |url=https://www.bclplaw.com/en-US/events-insights-news/fccs-new-11-consent-rule-spells-trouble-in-2025.html |title=FCC's new 1:1 consent rule spells trouble in 2025 |website=Bryan Cave Leighton Paisner |date=2025-01-10 |access-date=2025-09-10}}</ref>


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%.<ref>{{cite web |url=https://www.nclc.org/study-99-of-consumers-unaware-they-are-subject-to-forced-arbitration/ |title=Study: 99% of Consumers Unaware they are Subject to Forced Arbitration |website=NCLC |date=2022-03-01 |access-date=2025-09-10}}</ref>
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%.<ref>{{cite web |url=https://www.nclc.org/study-99-of-consumers-unaware-they-are-subject-to-forced-arbitration/ |title=Study: 99% of Consumers Unaware they are Subject to Forced Arbitration |website=National Consumer Law Center |date=2022-03-01 |access-date=2025-09-10}}</ref>


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.<ref>{{cite web |url=https://www.epi.org/publication/the-growing-use-of-mandatory-arbitration-access-to-the-courts-is-now-barred-for-more-than-60-million-american-workers/ |title=The growing use of mandatory arbitration: Access to the courts is now barred for more than 60 million American workers |website=Economic Policy Institute |date=2018-04-06 |access-date=2025-09-10}}</ref>
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.<ref>{{cite web |url=https://www.epi.org/publication/the-growing-use-of-mandatory-arbitration-access-to-the-courts-is-now-barred-for-more-than-60-million-american-workers/ |title=The growing use of mandatory arbitration: Access to the courts is now barred for more than 60 million American workers |website=Economic Policy Institute |date=2018-04-06 |access-date=2025-09-10}}</ref>
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* '''2025-07-25:''' Indeed & Glassdoor lay off 1,300 employees
* '''2025-07-25:''' Indeed & Glassdoor lay off 1,300 employees
* '''2025-08-22:''' Indeed publishes updated Terms of Service with arbitration agreement
* '''2025-08-22:''' Indeed publishes updated Terms of Service with arbitration agreement
* '''2025-09-07:''' Indeed sends notification emails to users about Terms changes
* '''2025-09-07:''' Indeed updates Legal page describing Terms changes


==References==
==References==