HomeAdvisor Penalized By FTC For Alleged False Claims About Leads

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HomeAdvisor reached a settlement with the USA Federal Commerce Fee (FTC) over allegedly misleading ways utilized by HomeAdvisor to promote leads through the use of unsubstantiated claims in regards to the high quality of the leads it offered to house enchancment professionals.

The Federal Commerce Fee (FTC) is a federal company charged with defending and educating customers in addition to selling competitors.

It protects customers from unfair enterprise practices, together with on this case house providers 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), wherein the corporate was accused of creating false claims in regards to the leads it was promoting.

An announcement famous that the misleading practices have been ongoing since a minimum of 2014.

HomeAdvisor is a house enchancment suggestion web site that provides data and rankings about house enchancment firms.

Web site customers fee firms and supply in depth critiques on webpages which can be particular to every contractor providing providers in communities throughout the USA.

The HomeAdvisor web site earns cash by promoting results in the companies which can be listed on the positioning.

HomeAdvisor ProScreenshot of HomeAdvisor gross sales lead web page from March 14, 2016, courtesy of Web Archive

FTC Alleges False and Deceptive Claims By HomeAdvisor

The grievance by the FTC alleged that HomeAdvisor misled house contractors in regards to the leads they have been promoting to them.

Based on the FTC:

“The FTC’s March 2022 administrative grievance in opposition to HomeAdvisor charged that since a minimum of 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 instructed service suppliers that its leads lead to jobs at charges a lot increased than it might substantiate.

Lastly, the grievance alleged that HomeAdvisor’s gross sales brokers misrepresented that the non-compulsory one-month mHelpDesk subscription was free.”

FTC order to pay defrauded house enchancment service suppliers was made in January 2023 and was just lately permitted by the FTC on the of April 2023.

The unique January 2023 FTC order referred to practices of HomeAdvisor as deceptive.

The FTC press launch introduced:

“Right this moment’s order requires HomeAdvisor to refund house service suppliers tens of millions of {dollars} and cease deceptive them in regards to the high quality of its leads,” mentioned Samuel Levine, Director of the FTC’s Bureau of Client Safety. ‘At the same time as the character of labor and the financial system change, the FTC will proceed to fight dishonest business practices aimed toward customers, staff, and small companies.’”

The permitted 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:

FTC Approves Remaining Order in opposition to HomeAdvisor, Inc. for Deceptively Advertising its Leads for Residence Enchancment Tasks

Featured picture by Shutterstock/Csaba Peterdi



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