Disclaimer
We are not lawyers, nor are we making any legal claims or allegations against Angi/HomeAdvisor. This video is based on publicly available information, including news reports and the FTC complaint, as well as comments shared by YouTube viewers. We are simply reporting on this information and are not affiliated in any way with the FTC complaint or Angi/HomeAdvisor. All opinions expressed are our own, and viewers should conduct their own research or consult legal professionals for specific guidance regarding their own experiences.
What Is The FTC?
The FTC (Federal Trade Commission) is a U.S. government agency that protects consumers from unfair, deceptive, or harmful business practices. Their responsibilities include ensuring companies:
- Tell the truth in their advertising.
- Avoid scams.
- Promote fair competition in the marketplace.
If companies violate these principles, the FTC can investigate, stop illegal actions, and sometimes enforce fines or refunds. The FTC acts as a watchdog to ensure businesses operate fairly and people are not cheated.
How Can the FTC Investigate a Company?
A company can come under FTC investigation through the following methods:
- Consumer Complaints: If enough people report that a company is dishonest or scamming them.
- Competitor Complaints: Other businesses might report unfair practices.
- Internal Monitoring: The FTC actively monitors industries to identify problems.
- Investigative Research: The FTC can investigate specific sectors for violations.
- Referrals: Other government agencies or legal bodies can ask the FTC to investigate.
These investigations help protect consumers and maintain honesty in business practices.
FTC Complaint Against Angi (HomeAdvisor)
Background
HomeAdvisor, affiliated with Angi (formerly Angie’s List), faced legal action from the FTC over alleged deceptive marketing practices. Below are the key details of the lawsuit:
Allegations
- Made false, misleading, or unsubstantiated claims about the quality and source of leads sold to home service providers.
- Misrepresented the likelihood of leads resulting in jobs at higher rates than it could substantiate.
- Falsely told service providers that the optional one-month mHelpDesk subscription was free, when it actually cost $59.99.
Settlement Details
In January 2023, the FTC issued a proposed order requiring HomeAdvisor to:
- Pay up to $7.2 million for redress.
- Stop making false or misleading claims about its leads.
- Cease misrepresenting products as free when they are not.
The final consent order was approved in April 2023.
Refunds and Claims Process
As part of the settlement:
- The FTC is sending over $3 million in refunds to 110,372 businesses that paid for HomeAdvisor memberships.
- 91,273 claim forms are being sent to businesses that paid for mHelpDesk, allowing them to claim refunds up to $59.99.
- The deadline for submitting claims was February 26, 2024.
HomeAdvisor’s Response
HomeAdvisor maintained that it did not admit to any illegal activity but chose to settle to focus on its core business. The company emphasized its long-standing relationships with home service professionals as evidence of its legitimacy.
ANGI (HomeAdvisor) Annual Revenue
HomeAdvisor was ordered to pay $7.2 million, representing approximately 0.09% of their total revenue from 2019 to 2023. Here is a breakdown of ANGI’s revenue over the last five years:
- 2023: $1,358,748,000
- 2022: $1,891,524,000
- 2021: $1,685,438,000
- 2020: $1,467,925,000
- 2019: $1,326,205,000
Total (2019-2023): $7,730,841,000