Texas launches investigation of LinkedIn over claims of ‘ghost jobs’

AUSTIN, Texas – The Texas Attorney General’s office has opened an investigation into LinkedIn over allegations that the professional networking platform misleads consumers with advertising and profiting from misleading or fake job listings, otherwise known as “ghost jobs.”

LinkedIn investigation

In this photo illustration a Linkedin logo seen displayed on a mobile phone. (Photo Illustration by Stanislav Kogiku/SOPA Images/LightRocket via Getty Images)

What we know:

Texas announced on Tuesday it has issued a Civil Investigative Demand (CID) seeking documents, data and internal communications related to LinkedIn’s advertising, marketing, job listing verification practices and its Premium subscription services.

The investigation centers on whether LinkedIn violated Texas’ consumer protection laws by promoting paid subscription services while allegedly failing to disclose that some job listings on the platform may not actually be representative of hiring opportunities.

What is a ‘ghost job’?

An image of a woman holding a cell phone in front of a LinkedIn logo displayed on a computer screen. On Tuesday, January 12, 2021, in Edmonton, Alberta, Canada. (Photo by Artur Widak/NurPhoto via Getty Images)

Dig deeper:

LinkedIn is owned by Microsoft and the world’s largest professional networking platform, with more than 1 billion registered users worldwide. 

A “ghost job” generally refers to a position advertised online that either is no longer available or that an employer has no immediate intention of filling. The attorney general’s office cited independent studies estimating that ghost jobs account for between one-fifth and one-third of online job postings.

Texas AG targets Premium Subscription Fees

 Photographer: Mark Felix/Bloomberg via Getty Images

What they’re saying:

According to the office of the attorney general, LinkedIn does not independently verify the hiring status of most job listings on its platform. Ken Paxton’s office alleges that the company’s marketing for its Premium subscription services does not disclose that a significant number of postings could be inactive, unfilled or not reflect genuine employment opportunity.  

“I will use every resource available to my office to help job-seeking Texans find and secure real employment opportunities,” Paxton said in a statement. “LinkedIn has a duty to provide the services it advertises and ensure that consumers paying for Premium subscriptions are receiving access to legitimate job postings.”

Texas officials said LinkedIn’s Premium Career and Premium Business subscriptions cost about $39.99 and $69.99 per month, respectively, and are marketed to jobseekers looking to improve their employment prospects.

What’s next:

The investigation does not include any formal allegations of wrongdoing, and no lawsuit has been filed.