Texas has launched an investigation into LinkedIn over allegations the company allegedly advertised and profited from fake or misleading job listings known as "ghost jobs," the attorney general's office announced Tuesday.
The investigation centers on claims that job seekers who paid for LinkedIn Premium subscriptions may have been presented with listings that were not legitimate hiring opportunities, according to the attorney general's office.
The attorney general's office describes a "ghost job" as a listing that either does not correspond to an actual open position or is posted despite an employer having no immediate intention of filling the role, according to the attorney general's office.
According to the attorney general's office, LinkedIn does not disclose that some listings may not represent active hiring opportunities, leading some consumers to pay for Premium subscriptions based on allegedly misleading representations about the platform's job marketplace.
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Texas officials said LinkedIn Premium Career and Premium Business subscriptions cost about $39.99 and $69.99 per month, respectively.
"I will use every resource available to my office to help job-seeking Texans find and secure real employment opportunities," Texas Attorney General Ken 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," he continued. "I am investigating whether LinkedIn has misled Texans by promoting and profiting from ‘ghost jobs’ while marketing itself as a trusted platform for finding employment."
Paxton said his office has issued a Civil Investigative Demand seeking documents, data and internal communications related to LinkedIn's advertising, marketing, verification practices and representations about its Premium subscription services and job listings.
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In response to the investigation, LinkedIn defended its job marketplace, saying listings on the platform are required to be authentic and accurately represented.
"LinkedIn’s goal is to help jobseekers find their next role, and our policies require that jobs posted be authentic and accurately represented," a LinkedIn spokesperson told FOX Business. "For many jobs posted on LinkedIn, we also display the company's response time and whether they're currently reviewing candidates, which helps jobseekers know if it is a current, active job opportunity."
"We actively enforce our policies and continually invest in new features like verifications for jobs, recruiters and company pages to help LinkedIn members identify more trusted opportunities," the spokesperson added.
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The attorney general's investigation has not resulted in formal charges or a lawsuit.
