Texas Attorney General Ken Paxton announced an investigation into whether LinkedIn scammed job seekers into signing up for Premium subscriptions. As a result, LinkedIn may have profited from fake or inactive “ghost jobs.” The state demands internal records of advertising and verification practices. LinkedIn says its policies ensure that job listings are authentic and accurately represented.

Thekabarnews.com—Texas Attorney General Ken Paxton is investigating LinkedIn over allegations that the professional networking site advertised and profited from fake or misleading job postings. LinkedIn sold paid subscriptions to job seekers.

Paxton’s office announced the investigation on Tuesday, July 14. The investigation will look at whether LinkedIn violated the Texas Deceptive Trade Practices Act (DTPA) in how it marketed its Premium subscriptions. The inquiry focuses on what it said about job listings.

The state served LinkedIn with a civil investigative demand to produce documents and internal communications. It also demanded data related to its advertising, job verification procedures, premium services, and representations to consumers.

Issuing a records request is an investigative act, not a finding of wrongdoing. Texas authorities have not shown LinkedIn violated consumer protection law.

A “ghost job” usually refers to an online listing for a position that does not exist, that an employer has already filled, or that the employer does not intend to fill. In these cases, the employer has no immediate plans to hire anybody.

Independent estimates from the Texas Attorney General’s Office suggest such listings could make up between one-fifth and one-third of online job ads. Definitions and research methods vary, so it is difficult to establish the exact share.

According to the official announcement from the Texas Attorney General, LinkedIn has well over one billion registered users globally. The company generated approximately $17.8 billion in revenue in the fiscal year of 2023.

The investigation also partly rests on whether job seekers bought LinkedIn Premium because they thought advertised jobs were active and real hiring opportunities.

Texas consumers reportedly pay around $39.99 a month for Premium Career and $69.99 for Premium Business. LinkedIn’s marketing fails to sufficiently disclose that some listings may be inactive, unfilled, or unrelated to immediate hiring, Paxton’s office said.

“I’m investigating whether LinkedIn has deceived Texans by advertising and profiting from so-called ‘ghost jobs,’” Paxton said.

The state will determine if that alleged failure to disclose had a material impact on consumers’ decisions to pay for subscriptions. In contrast, LinkedIn has denied the allegation that it tolerates fake job listings.

A company spokesperson told Chron that LinkedIn’s goal is to help job seekers find their next role. Our policies require jobs posted to be authentic and accurately represented.

The company said it shows information such as employer response times and whether recruiters are reviewing candidates. LinkedIn also employs verification tools for recruiters, company pages, and job listings.

The verification badge, as per LinkedIn’s official help center, can authenticate details about a company and the individual posting a job. The badge does not guarantee that an applicant will receive an interview or find the position suitable.

LinkedIn also has an “Actively recruiting” label. This label reflects recent activity by recruiters, such as responding to applicants and reaching out to potential candidates.

LinkedIn must comply with the state’s document request before Texas officials decide whether to take further legal action. The probe might wind down with no enforcement, end in a negotiated settlement, or lead to a consumer-protection lawsuit.

Job seekers can decrease their chances of falling victim to such scams by checking the employer’s official career page and noting the date a vacancy was posted. They should also check that the recruiter is verified. Furthermore, they should avoid upfront payments or requests for sensitive financial information.