FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

HELP WANTED....

Finding a Job

I saw an ad in the newspaper for jobs in corporate finance. I 

faxed my resume to the 800-number listed and got a call from a 

woman who said her company works with businesses to find employees 

to fill their positions. She said the service would cost me $495, but the 

fee was fully refundable if I was dissatisfied or found a job on my own. She 

guaranteed me interview opportunities and told me that if I found a job through her company, 

there was a good chance my new employer would reimburse me for the fee. I never got any 

interviews, let alone a refund, and now I can’t even get the company to return my calls.

— paraphrased from a sample complaint letter to the FTC.

I f you’re looking for a job, you may come across ads for firms that promise results. Although many of these firms may be legitimate and helpful, others may misrepresent 

their services, promote out-dated or fictitious job offerings, or charge high up-front fees for 

services that may not lead to a job. Some ads may direct you to call a toll-free 800-number. Once 

you’re connected, you may be switched to a pay-per-call 900-number without your knowledge, or 

you may be asked to call a 900-number without a proper fee disclosure. Both practices are against 

the law.

The Federal Trade Commission (FTC) sues businesses that fraudulently advertise employment 

openings and guarantee job placement. Consumers who respond to these ads think they’re 

contacting a bona fide placement service that’s seeking candidates to fill specific jobs. Instead, 

they’re reaching a business that rarely helps consumers get employment through its “services.” 

To make matters worse, these businesses invariably charge advance fees — ranging from several 

hundred to several thousand dollars — for their “services,” typically imposing the fees without 

consumer approval, or promising — falsely — that most or all of the fees ultimately will be 

refunded.

POSITIONS 

AVAILABLE

Now accepting 

resumes

 Bilingual a plus

Call now:

1-800-000-0000
Facts for Consumers 

Types of Employment Service Firms

When you’re looking for help in finding a job, 

it’s important to understand the differences among 

employment services. Many terms, such as 

employment agency, personnel placement service, 

executive search firm, or executive counseling 

service are used interchangeably. Find out what 

services a firm offers, how much the services 

cost, and who pays. If you’re required to pay the 

fee, find out what you’ll owe if the employment 

service fails to find you a job or any leads.

Six basic types of service companies/agencies 

offer consumers help in finding a job. They 

include: public employment services; employment 

agencies; executive search services; temporary 

help services; executive counseling services; and 

job listing services.

• The federally-funded and state-operated 

Public Employment Service, also known as 

the Job Service, operates in all 50 states, the 

District of Columbia, Guam, Puerto Rico, 

and the Virgin Islands. The Employment 

Service provides Internet access to America’s 

Job Bank (AJB). On any given day, this 

national resource lists hundreds of thousands 

of job opportunities. It also provides links 

to numerous employment and training 

programs in each state, including programs 

for people with disabilities, minorities, 

older workers, veterans, welfare recipients, 

and young people. There are some 2,300 

points of service nationwide; about 1,700 of 

them are full-time, full-service offices. The 

Employment Service provides its services 

free to both employers and job seekers. 

Openings range from entry level to technical 

and professional positions. Visit www.ajb.

dni.us for more information.

•	 Employment agencies or personnel placement 

services work to fill specific positions 

available within companies. Their purpose 

is to bring applicants and employers 

together. Often, the hiring company pays the 

placement fee, but when state law permits, 

you and the employer may share the fee or 

the fee may be billed to you after you’ve 

been hired. Employment agencies usually are 

licensed in the state where they do business. 

•	 Executive search firms or executive 

recruiters are hired by businesses to find the 

“right” person for a particular job within 

an organization. Recruiters sometimes are 

referred to as “headhunters.” The executive 

who is hired doesn’t pay the fee; it’s part of 

the agreement between the hiring business 

and the search firm. Executive search 

firms usually subscribe to a code of ethics 

established by industry members; some firms 

are licensed by the states where they do 

business, as required by state law. 

•	 Temporary help services supply workers to 

businesses on a temporary or as-need basis. 

Businesses pay an agreed-upon wage to the 

temporary service for work performed by the 

employees. The temporary service firm pays 

the workers, not the temporary employer. 

• Executive counseling services or career 

counseling services help job seekers with 

career directions and decisions more than 

with job placement. They may offer services 

like skill identification and self evaluation, 

resume preparation and letter writing, and 

general information about companies or 

organizations in a particular location or job 

field. Fees can be as high as $4,000, and 

payment often is required before services are 

provided. You’ll probably have to pay this 

fee even if you don’t find a job. Placement 

is not guaranteed. State law dictates whether 

executive counseling firms are licensed. 
Facts for Consumers

• Job listing services or advisory services

sell information about getting a job in the 

U.S. or abroad. They often use pay-percall 900-numbers to do this. They do not 

provide actual job placement. Information 

may include lists of job openings, general 

tips on conducting a successful job search 

or interview, and broad guidance in resume 

writing. These advisory firms often require 

an up-front fee for their listings. 

Protecting Yourself

Before you spend any money responding to job 

ads or completing job placement contracts, the 

FTC suggests that you:

•	 Be suspicious of any employment-service

firm that promises to get you a job. 

•	 Be skeptical of any employment-service

firm that charges up-front fees, even if it 

guarantees refunds to dissatisfied customers. 

•	 Don’t give out your credit card or bank

account information on the phone unless 

you’re familiar with the company and agree 

to pay for something. Anyone who has your 

account information can use it to commit 

financial fraud against you. 

•	 Get a copy of the firm’s contract and review

it carefully before you pay any money. 

Understand the terms and conditions of 

the firm’s refund policy. Make sure you 

understand what services will be provided 

by the firm and what you’ll be responsible 

for. If oral promises are made that don’t 

also appear in the contract, think twice about 

doing business with the firm. 

•	 Take your time reviewing the contract.

Don’t be rushed into paying for services. 

Avoid high-pressure sales pitches that require 

you to pay now or risk losing out on the 

opportunity.

•	 Be cautious about purchasing from a firm

that’s reluctant to answer your questions or 

gives you evasive answers.

•	 Be aware that some listing services and

“consultants” may place ads that seem to 

offer jobs when, in fact, they’re selling 

employment information.

•	 Follow up with the offices of any company

or organization listed in an ad by an 

employment service, to find out if the 

company’s really hiring.

•	 Be wary of firms promoting “previously

undisclosed” federal government jobs. All 

federal positions are announced to the public.

•	 Check with your local consumer protection

agency, state Attorney General’s Office, 

and the Better Business Bureau to see if any 

complaints have been filed about a company 

with which you intend to do business.

In addition, federal law prohibits the use of a 

toll-free number for pay-per-call 900-number 

services. This means that anyone calling a 

toll-free number cannot be charged simply for 

completing the call, and that a toll-free number 

call cannot be transferred, or connected to, a 

pay-per-call 900-number service. Federal law also 

prohibits any telephone message that solicits calls 

to a pay-per-call 900-number service from failing 

to disclose the cost of the call.

For More Information

A variety of free and low-cost resources are 

available to help you in your job search.

• Job Service offices post vacancies and 

offer counseling and referrals to other job 

resources.

•	 Local and county human resources offices

provide some placement assistance. They can 

give you the names of other groups that may 

be helpful, such as labor unions or federallyfunded vocational programs.

•	 University, college and community college 

career service offices usually limit their help 

to students and alumni, but some may let you 

look at their current job listings.
Facts for Consumers

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

September 2002

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education

•	 Local libraries can direct you to information 

on writing a resume, interviewing, 

or compiling a list of companies and 

organizations to contact about job openings.

•	 The Internet, through major online 

services and electronic bulletin boards, 

has information and options to help you, 

including classified ads and resume postings.

Where to Complain

If you have a problem with an employmentservice firm, contact your local consumer 

protection agency, Better Business Bureau, the 

appropriate state licensing board, or your state 

Attorney General.

If you have problems with charges on your phone 

bill for 900-number calls to fraudulent businesses, 

contact your telephone company immediately. No 

phone company is obligated to delete the charges, 

but you should ask. Call your carrier or the 

Federal Communications Commission for policy 

information.

The FTC works for the consumer to prevent 

fraudulent, deceptive, and unfair business 

practices in the marketplace and to provide 

information to help consumers spot, stop, 

and avoid them. To file a complaint or to get 

free information on consumer issues, visit 

ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. 

The FTC enters consumer complaints into the 

Consumer Sentinel Network, a secure online 

database and investigative tool used by hundreds 

of civil and criminal law enforcement agencies in 

the U.S. and abroad.