March 18, 2022

FTC Alleges HomeAdvisor Misled Businesses Regarding Leads

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

The FTC has charged HomeAdvisor, Inc.—also d/b/a Angi Leads and HomeAdvisor Powered by Angi—with violations of Section 5 of the FTC Act for allegedly using deceptive and misleading marketing tactics in selling home improvement project leads and subscription services to home service providers.
According to the Complaint, HomeAdvisor sales agents allegedly misled home improvement businesses regarding the quality, characteristics, and source of the customer leads provided, many of which were not, as HomeAdvisor claimed, from consumers intending to hire a service provider soon, and many of which were actually purchased from affiliates and not gathered from HomeAdvisor’s website. HomeAdvisor also allegedly falsely advertised that the first month of an add-on subscription help desk service would be free when, in reality, it was not.
The Complaint seeks an injunction prohibiting any further misrepresentations in marketing HomeAdvisor’s services to home service providers, among other things, and notifies HomeAdvisor that the FTC will hold a hearing on this matter on November 9, 2022.

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