Job seekers navigating the digital marketplace now face significant changes on Indeed.com, one of the world’s largest employment platforms. The company, a subsidiary of Tokyo-based Recruit Holdings (TYO: 6098, OTCMKTS: RCRUY), has implemented new Terms of Service that strip users of their right to sue in court and employ a controversial “bundled consent” practice for communications. These modifications come as the company undergoes substantial corporate restructuring, including massive layoffs and a leadership shake-up, raising concerns for the millions who rely on the service for their livelihood.
A Company in Transition
The changes to Indeed’s user agreement were not made in a vacuum. The platform, which attracts over 350 million unique visitors monthly, has been navigating significant operational turbulence. Over 2023 and 2024, the company eliminated more than 3,200 positions. This restructuring culminated in the June 2, 2025, resignation of CEO Chris Hyams, who was replaced by his predecessor, Hisayuki “Deko” Idekoba, who also serves as CEO of parent company Recruit Holdings.
These internal shifts are mirrored by financial headwinds. In its Q1 2024 report, Recruit Holdings disclosed a 2.5% year-over-year revenue decline in its HR Technology sector, which includes Indeed, with US revenue falling by 5.0%. This challenging business environment serves as the backdrop for the rollout of new user terms that fundamentally alter the relationship between the platform and its users.
The Fine Print: Mandatory Arbitration and Bundled Consent
Effective August 22, 2025, Indeed updated its terms to impose mandatory binding arbitration for all US users. This provision, detailed in Section D.12 of the legal agreement, compels users to waive their right to a jury trial and prohibits them from participating in class-action lawsuits against the company. The clause retroactively covers all past, present, and future disputes. While a 30-day opt-out window is provided, consumer advocates warn that notifications for such changes are often missed by users, as they can be relegated to spam folders or overlooked in the flood of daily emails.
Tech commentator and consumer rights advocate Louis Rossman criticized the practice in a recent online video, stating, “Forced arbitration is a system where you give up your Seventh Amendment right to a trial.” He further explained the inherent conflict of interest: “The arbitrator is somebody paid for by the company forcing you into this agreement… Who do you think is going to win? Most of the time, the arbitrator is going to want to keep their customer happy. Indeed, we are our customers.”
Simultaneously, Indeed is utilizing a “bundled consent” mechanism on its platform. When applying for jobs, users are presented with a single checkbox stating, “Check this box to receive calls or text messages at the number you provided from employers you’ve applied to, & Indeed.” This practice combines two distinct permissions: consenting to contact from potential employers and consenting to marketing communications from Indeed itself. Users cannot opt into one without agreeing to the other.
This approach is legally questionable, as it may conflict with the Telephone Consumer Protection Act (TCPA), which governs marketing communications. The timing is notable, following the January 2024 vacation of the Federal Communications Commission’s (FCC) “one-to-one consent” rule, which would have required that consent be granted to one seller at a time. By bundling consent, Indeed leverages a job seeker’s need to be reachable by employers to secure permission for its own marketing efforts, a practice Rossman calls “disgusting” and exploitative of those in the stressful position of unemployment.
What Job Seekers Should Know
For the millions of Americans using Indeed, these changes warrant careful attention.
Loss of Legal Recourse: By agreeing to the new terms, users lose their ability to take Indeed to court or join a class-action lawsuit, which has historically been a key tool for consumers to hold corporations accountable for widespread issues.
Unwanted Communication: The bundled consent checkbox means that to be contacted by potential employers via text or phone, job seekers must also agree to receive marketing from Indeed. This could increase the volume of unsolicited messages they receive.
Arbitration Opt-Out: Users who do not wish to be bound by the arbitration clause must actively opt out within the 30 days specified in the notification email. Users must monitor their inbox—and spam folder—for this notice to exercise their right to decline.
As the job market continues to evolve, these platform-level changes add a new layer of complexity and caution for job seekers, who must now be as vigilant about the terms of the tools they use as they are about the terms of the jobs they seek.
Video credit: Louis Rossman/YouTube.
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