HomeAdvisor, Inc.
Also known as: Angi Leads, HomeAdvisor Powered by Angi.
The FTC alleged that HomeAdvisor made misleading claims about the quality, source, and conversion rates of home improvement leads and misrepresented an optional subscription as free. A final consent order required up to $7.2 million for redress.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- In the Matter of HomeAdvisor, Inc. (FTC administrative proceeding, 2022)
- Locations
- Denver
- Jurisdictions
- United States (federal)
Lead marketing allegations ended in a final consent order
HomeAdvisor, Inc. sells home improvement project leads to service providers such as general contractors and lawn care businesses. Providers generally paid an annual membership fee of $287.99 plus a separate fee for each lead. Many also paid $59.99 for the first month of mHelpDesk, an optional scheduling and payment processing service.
The FTC’s 2022 administrative complaint alleged that since at least mid-2014 HomeAdvisor made false, misleading, or unsubstantiated claims about the quality and source of its leads. The complaint alleged that some leads did not match providers’ services or preferred areas, some came from affiliates rather than consumers who contacted HomeAdvisor, and claimed conversion rates exceeded what HomeAdvisor could substantiate. It also alleged that sales agents represented the first month of mHelpDesk as free when it was not.
The Commission finalized a consent order in April 2023. The order prohibited false or misleading claims about leads, misrepresenting products as free, and unsupported claims about conversion rates. It required HomeAdvisor to pay up to $7.2 million for redress through two funds.
In November 2023, the FTC reported sending more than $3 million in refunds through 110,372 checks to eligible home service providers. It also sent 91,273 claim forms to businesses that had paid for mHelpDesk.
What is not established
The matter ended in a final consent order. The supplied releases do not state that HomeAdvisor admitted wrongdoing, and they do not provide a total amount that service providers lost.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action March 11, 2022
- Enforcement action January 23, 2023
- Enforcement action April 21, 2023
- Enforcement action November 28, 2023
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First recorded March 11, 2022 · Last updated November 28, 2023