Indeed Sues ZipRecruiter for Misleading Job Posting Claims

Indeed announced a change to its free job postings policy, effective Oct. 1, 2024. This new policy will prohibit employers from posting the same job more than once for free; this restriction applies to both their application systems and directly on the Indeed website. 

Following this change, Indeed found itself obligated to file a lawsuit against ZipRecruiter, due to its efforts that misled Indeed clients by claiming that it had indefinitely ended free postings and required payment for all listings, as detailed in the lawsuit brief. While ZipRecruiter denies these allegations, Indeed seeks to clarify the situation and protect its customer relationships amid the misinformation, reports HR Dive. 

The lawsuit, filed in the US District Court for the Western District of Texas, alleges that ZipRecruiter contacted Indeed's employer customers, falsely claiming that Indeed would eliminate all free job postings and impose a minimum budget of US$5 per post. Additionally, ZipRecruiter employees reportedly discussed the policy change on LinkedIn, where a senior manager asserted that Indeed would no longer support organic job postings. Although, this statement was later deleted, it was allegedly shared by multiple employees.

ZipRecruiter has publicly disagreed with Indeed's claims. A company spokesperson stated: “We strongly disagree that competing with Indeed is a violation of Federal law.” They expressed surprise at Indeed’s decision to file the lawsuit instead of addressing what they described as industry-wide confusion regarding Indeed’s policy changes, reports HR Dive.  

The lawsuit accuses ZipRecruiter of violating the Lanham Act by making false or misleading statements that interfere with Indeed's customer relationships and undermine the value of its services. Additionally, it alleges that ZipRecruiter employees created accounts on Indeed, which violates its terms of service and constitutes tortious interference with Indeed’s contracted customers.

Indeed seeks declaratory and injunctive relief, aiming for a judicial declaration that ZipRecruiter violated its terms of service and lacks the right to solicit customers or make misleading statements on Indeed's platform.