Texas wants to know whether LinkedIn is making money off listings that were never real job openings.
Paxton's office formally requested internal files, data, and communications via a Civil Investigative Demand, focusing on LinkedIn's advertising, marketing, verification practices, and statements about Premium subscriptions and job postings. No lawsuit has been filed yet, but the state is digging.
The accusation is simple: LinkedIn sells Premium subscriptions that promise access to better job opportunities. The attorney general's office defines a "ghost job" as a posting that either has no real vacancy behind it or was created even though the employer has no plan to hire soon.
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In a statement, Paxton said he will use all his office's resources to assist Texans looking for jobs in finding and obtaining genuine work. He contended that LinkedIn is obligated to deliver the services it markets and to guarantee that paying Premium subscribers get access to real job listings.
"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.
LinkedIn pushed back. A company spokesperson told FOX Business: "LinkedIn's goal is to help jobseekers find their next role, and our policies require that jobs posted be authentic and accurately represented. 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."
The spokesperson added: "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."
Premium subscriptions represent a major revenue stream for LinkedIn, with millions of users paying monthly fees for enhanced job search tools. If the investigation finds that LinkedIn knowingly allowed ghost jobs to attract paying subscribers, the company could face significant fines and reputational harm under the Deceptive Trade Practices Act.
Many job seekers have grown increasingly frustrated by ghost jobs, often spending hours on applications that yield no responses. Texas's investigation under the Deceptive Trade Practices Act could set a precedent for how states regulate job platforms. If the state proves its case, LinkedIn may face fines and be forced to change how it verifies listings.
Under the Texas Deceptive Trade Practices Act, companies that engage in false or misleading advertising can be held liable. If the investigation reveals that LinkedIn knowingly allowed ghost jobs to persist, the company could be required to pay restitution to subscribers and face civil penalties. This probe reflects a broader push by state regulators to hold online platforms accountable for the accuracy of their listings.
But the state is asking for the receipts. The Civil Investigative Demand will force LinkedIn to hand over whatever it has on how it polices its own listings.
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