WASHINGTON, D.C. — The Federal Trade Commission (FTC) recently approved its final order for caring.com senior living referral service to be divested in order for the completion of Red Ventures' acquisition of Bankrate, an order that settles charges that the acquisition could disrupt market competition.
The FTC has announced the approval of the final order that settles the FTC's charges against a $1.4 billion acquisition of Bankrate by Red Ventures, whose two biggest shareholders jointly own A Place for mom.com is the largest third-party paid referral services for senior living facilities.
According to the FTC, Red Ventures' acquisition with Bankrate, which both furnish proprietary Internet and customer leads for several industries, would harm competition in the market for third-party paid referral services for senior living facilities because A Place for mom.com's competitor caring.com is a subsidiary of Bankrate.
The FTC complaint alleges without the ordered divestiture, the acquisition of Bankrate by Red Ventures would "unilaterally exercise market power and the potential for coordinated interaction between caring.com and A Place for Mom."
The order, which the FTC approved with a 2-0 vote, requires Red Ventures and Bankrate to divest caring.com within six months of the acquisition.