HomeAdvisor settles with FTC, returns $3 million to contractors

The Federal Trade Commission (FTC) is sending over $3 million in refunds to contractors as part of a legal battle with HomeAdvisor.

Background: Last March, the FTC filed a complaint against HomeAdvisor — which merged with Angie’s List in 2017 to form Angi — alleging that since 2014, it’s used deceptive tactics in selling leads to contractors.

Specifics: “HomeAdvisor told service providers that its leads resulted in actual home improvement jobs at rates higher than HomeAdvisor’s own data supported,” said the original filing.

• “In addition, while HomeAdvisor represents that services providers only will receive leads matching the types of services they provide and their preferred geographic area, many of them do not.”

In a response note to the claims, HomeAdvisor said it had full confidence that it would win the case but chose to settle instead.

“Our decision to settle was to put our full focus back where it belongs: creating the products and experience you want and need to better grow your businesses,” the company said.

Looking ahead: A January order bars HomeAdvisor from continuing any deceptive practices, and now, over 110,000 refund checks are going out to contractors across the country.