HomeAdvisor reached a settlement with america Federal Commerce Fee (FTC) over allegedly misleading techniques utilized by HomeAdvisor to promote leads through the use of unsubstantiated claims in regards to the high quality of the leads it bought to residence enchancment professionals.
The Federal Commerce Fee (FTC) is a federal company charged with defending and educating shoppers in addition to selling competitors.
It protects shoppers from unfair enterprise practices, together with on this case residence companies suppliers who have been alleged to be misled by HomeAdvisor.
HomeAdvisor False and Deceptive Claims
The Federal Commerce Fee (FTC) reached a settlement with HomeAdvisor, an organization affiliated with Angi (previously Angie’s Listing), through which the corporate was accused of constructing false claims in regards to the leads it was promoting.
An announcement famous that the misleading practices have been ongoing since no less than 2014.
HomeAdvisor is a house enchancment advice web site that provides data and scores about residence enchancment corporations.
Web site customers fee corporations and supply in depth critiques on webpages which are particular to every contractor providing companies in communities throughout america.
The HomeAdvisor web site earns cash by promoting results in the companies which are listed on the positioning.
Screenshot of HomeAdvisor gross sales lead web page from March 14, 2016, courtesy of Web ArchiveFTC Alleges False and Deceptive Claims By HomeAdvisor
The grievance by the FTC alleged that HomeAdvisor misled residence contractors in regards to the leads they have been promoting to them.
In response to the FTC:
“The FTC’s March 2022 administrative grievance towards HomeAdvisor charged that since no less than mid-2014 it had made false, deceptive, or unsubstantiated claims in regards to the high quality and supply of the leads the corporate sells to service suppliers who’re searching for potential prospects.
The grievance additionally alleged that HomeAdvisor usually advised service suppliers that its leads lead to jobs at charges a lot greater than it might substantiate.
Lastly, the grievance alleged that HomeAdvisor’s gross sales brokers misrepresented that the optionally available one-month mHelpDesk subscription was free.”
FTC order to pay defrauded residence enchancment service suppliers was made in January 2023 and was not too long ago accredited by the FTC on the of April 2023.
The unique January 2023 FTC order referred to practices of HomeAdvisor as deceptive.
The FTC press release introduced:
“Right now’s order requires HomeAdvisor to refund residence service suppliers thousands and thousands of {dollars} and cease deceptive them in regards to the high quality of its leads,” stated Samuel Levine, Director of the FTC’s Bureau of Client Safety. ‘Whilst the character of labor and the financial system change, the FTC will proceed to fight dishonest business practices aimed toward shoppers, employees, and small companies.’”
The accredited order requires HomeAdvisor to pay $7.2 million service suppliers who have been “defrauded.”
It additionally requires HomeAdvisor to cease making false claims about their leads, particularly that the leads are by people who find themselves prepared to rent service suppliers or that they’ve submitted a request on to HomeAdvisor.
Learn the official FTC press launch in regards to the approval of the order:
Featured picture by Shutterstock/Csaba Peterdi
