Paxton investigates LinkedIn over allegations of ‘ghost job’ postings

EL PASO, Texas (KVIA) -- Texas Attorney General Ken Paxton said he opened an investigation into LinkedIn over allegations the company advertised and profited from fake or misleading job opportunities.

LinkedIn, a professional networking platform that has a job search tool. The company generates revenue through its Premium subscription services, recruiter licenses and advertising, according to the attorney genral.

Paxton said LinkedIn marketed its paid Premium services to job seekers expecting legitimate and active hiring opportunities.

He alleged that users paying for LinkedIn Premium Career or Premium Business subscriptions see some "ghost job" listings. Additionally, he said users paying for these services pay $39,99 and $69.99 per month.

"Ghost jobs" are listings that either don't correspond to an actual open position or is posted despite an employer having no intention of filling the role, according to Attorney General Paxton.

Additionally, he accused LinkedIn of not independently verifying the status of most listings on the platform. Additionally, he said the Premium marketing materials don't disclose a significant percentage of job postings that may be inactive, unfilled or ingenuine.

"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. 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," the attorney general said in a statement.

In a news release, Paxton said his office issued a civil investigative demand (CID) to LinkedIn seeking documents, data and internal communications related to the company's advertising, marketing, verification practices and representations concerning Premium subscription services and job listings.

Attorney General Paxton said many of the affected users are displaced workers, recent graduates, military veterans or people looking for new job opportunities.

In November, Paxton will face Democratic nominee James Talarico for a seat in the U.S. Senate.