FTC Sends Over $3 Million in Refunds to Businesses Over HomeAdvisor’s Deceptive Marketing Claims

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The Federal Trade Commission (FTC) has announced it is distributing more than $3 million in refunds to businesses that had purchased memberships from HomeAdvisor, Inc., a company affiliated with Angi, previously known as Angie’s List. The agency is also sending claim forms to businesses eligible for additional refunds.

The refunds are a result of FTC allegations that HomeAdvisor engaged in deceptive marketing practices when selling home improvement project leads to service providers, including small businesses in the “gig” economy. According to the FTC’s complaint in March 2022, HomeAdvisor made false, misleading, or unsubstantiated claims about the quality and source of the leads it was selling to home service providers seeking potential customers since at least mid-2014.

Furthermore, the FTC charged that HomeAdvisor misled businesses by claiming their annual membership would include one free month of mHelpDesk, an optional scheduling and payment processing service marketed by HomeAdvisor. However, the company charged an additional $59.99 for the first month.

The FTC is now issuing 110,372 checks to eligible home service providers as refunds related to these allegations. Providers are advised to cash their checks within 90 days as indicated on the check.

In addition, the agency is disseminating 91,273 claim forms to businesses that paid for mHelpDesk. The deadline to submit a claim is February 26, 2024. More information about the refund process can be obtained by visiting www.ftc.gov/HomeAdvisor or calling the refund administrator, Rust Consulting, Inc., at 1-833-915-1144. The FTC emphasizes that it never requires people to pay money or provide account information to receive a refund.

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