HomeAdvisor Penalized By FTC For Alleged False Claims About Leads

HomeAdvisor False and Misleading ClaimsThe Federal Trade Commission (FTC) reached a settlement with HomeAdvisor, a company affiliated with Angi (formerly Angie’s List), in which the company was accused of making false claims about the leads it was selling. FTC Alleges False and Misleading Claims By HomeAdvisorThe complaint by the FTC alleged that HomeAdvisor misled home contractors about the leads they were selling to them. The complaint also alleged that HomeAdvisor often told service providers that its leads result in jobs at rates much higher than it can substantiate. The original January 2023 FTC order referred to practices of HomeAdvisor as misleading. '”The approved order requires HomeAdvisor to pay $7.2 million service providers who were “defrauded.”It also requires HomeAdvisor to stop making false claims about their leads, specifically that the leads are by people who are ready to hire service providers or that they have submitted a request directly to HomeAdvisor.