In a fresh dispute between two recruitment giants, Indeed has sued ZipRecruiter over claims it has been unlawfully targeting its customers.
Indeed’s lawsuit makes a number of allegations, including misinformation about its policies and unauthorized account activities.
The Lawsuit
Indeed’s complaint centers around ZipRecruiter’s alleged creation of Indeed accounts using ZipRecruiter email addresses. Lawyers claim these actions violate its terms of service and are a direct attempt to spread misinformation to employers.
The complaint also accuses ZipRecruiter of making misleading statements to employers, suggesting Indeed’s policy changes would end free job postings.
Indeed’s Policy Change
In mid-2024, Indeed introduced a new policy aimed at reducing duplicate job listings on its platform:
It came in in October 2024, and limited the “double-posting” of free jobs, where listings appear as both free indexed posts and free direct posts on the platform
The aim of the change was to improve search quality and reduce confusion for job seekers
The policy, however, did not remove free postings altogether. Instead, it primarily addressed post redundancy.
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ZipRecruiter’s Response
Indeed claims following the policy change, ZipRecruiter reportedly initiated a targeted campaign to lure Indeed’s clients.
According to Indeed’s lawsuit:
- ZipRecruiter’s Message: Allegedly told employers that Indeed was ending free job listings, claiming the shift would diminish role visibility and increase dependency on paid ads.
- Sources of Discovery: Indeed employees found LinkedIn posts by ZipRecruiter representatives and received direct reports from clients who had been contacted with this information.
Indeed claims ZipRecruiter used its site to access information about employer postings, compiling data to support its claims of Indeed’s policy changes.
Cease and Desist Demand
Indeed took steps to counteract ZipRecruiter’s alleged tactics by issuing a cease and desist letter on September 19, 2024. In the letter, Indeed demanded ZipRecruiter:
- Cease all misleading communications.
- Retract any false statements shared with employers.
- Confirm that all violative activities would be discontinued.
ZipRecruiter’s response, sent on September 25, allegedly deflected Indeed’s demands and attempted to justify its actions instead of issuing the requested retractions.
What Indeed Wants
In response to these alleged infractions, Indeed has requested:
- Declaratory Relief: A court statement thadeclaring ZipRecruiter’s actions were unlawful.
- Injunctive Relief: A court order to prevent further actions by ZipRecruiter that would interfere with Indeed’s customer base.
ZipRecruiter’s Response
A spokesman said:
“We disagree with the allegations in the complaint and intend to defend ourselves. ZipRecruiter is committed to fair and transparent competition in the marketplace and find it surprising that Indeed would take this step instead of working to address the widespread confusion brought about by their rollout of recent policy changes.”
What’s Next?
This lawsuit marks a significant clash in the recruitment industry, with both companies contending for market dominance. The case’s outcome may not only affect the competition between these two firms but could also set new precedents on the tactics platforms can use to compete for customers in the highly competitive job market.
