UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 

In the Matter of 

HOMEADVISOR, INC., a corporation, 

d/b/a ANG! LEADS, 

d/b/a HO MEAD VISOR POWERED BY ANG!. 

DOCKET NO. D-9407 

AGREEMENT CONTAINING CONSENT ORDER 

The Federal Trade Commission ("Commission") has issued an administrative Complaint 

challenging certain acts and practices of HorneAdvisor, Inc., also d/h/a Angi Leads and also 

d/b/a HomeAdvisor Powered by Angi . The Commission 's Bureau of Consumer Protection 

("BCP") and Respondent, through their duly authorized officers, enter into this Agreement 

Containing Consent Order ("Consent Agreement") to resolve the allegations in the Complaint 

through a proposed Decision and Order to present to the Commission, which is also attached and 

made a part of this Consent Agreement. 

IT IS HEREBY AGREED by and between Respondent and BCP, that: 

I. Respondent is HomeAdvisor, Inc. ("I-lomeAdvisor"), also doing business as Angi Leads, also 

doing business as HomeAdvisor Powered by Angi, a Delaware corporation with its principal 

offices or places of business at ]60 I Walnut Street, Denver, Colorado 80205 and 14023 Denver 

West Parkway, Golden, Colorado 80401. 

2. Respondent has been served with a copy of the administrative Complaint issued by the 

Commission charging it with violations of Section 5(a) of the Federal Trade Commission Act 

and has filed an answer to the Complaint. 

3. R..espondent neither admits nor denies any of the allegations in the Complaint, except as 

specifically stated in the Decision and Order. Only for purposes of this action, Respondent 

admits the facts necessary to establish jurisdiction. The signing of this agreement is for 

settlement purposes only and does not constitute an admission by Respondent that the law has 

been violated as alleged in the Complaint. 

4. Respondent waives: 

a. Any further procedural steps; 

b. The requirement that the Commission's Decision contain a statement of findings of fact 

and conclusions of law; 
c. All rights to seek judicial review or otherwise to challenge or contest the validity of the 

Decision and Order issued pursuant to this Consent Agreement; and 

d. Any claim under the Equal Access to Justice Act. 

5. This Consent Agreement will not become part of the public record of the proceeding unless 

and until it is accepted by the Commission. If the Commission accepts this Consent Agreement, 

it will be placed on the public record for 30 days and information about it publicly released. 

Acceptance does not constitute final approval, but it serves as the basis for further actions 

leading to final disposition of the matter. Thereafter, the Commission may either withdraw its 

acceptance of this Consent Agreement and so notify Respondent, in which event the Commission 

will take such action as it may consider appropriate, or issue an<l serve its decision in disposition 

of the proceeding, which may include an Order. See Section 2.34 of the Commission's Rules, 16 

C.F.R. § 2.34 ("Rule 2.34"). 

6. If this agreement is accepted by the Commission, and if such acceptance is not subsequently 

withdrawn by the Commission pursuant to Rule 3.25(f), the Commission may, without further 

notice to Respondent: ( l) issue its Decision and Order; and (2) make information about it public. 

Respondent agrees that service of the Order may be effected by its publication on the 

Commission's website (ftc.gov), at which time the Order will become final. See Rule 2.32(d). 

Respondent waives any rights they may have to any other manner of service. See Rule 4.4. 

7. When final, the Decision and Order will have the same force and effect and may be altered, 

modified, or set aside in the same manner and within the same time provided by statute for other 

Commission orders. 

8. The Complaint may be used in construing the terms of the Decision and Order. No 

agreement, understanding, representation, or interpretation not contained in the Decision and 

Order or in this Consent Agreement may be used to vary or conlradicl the terms of the Decision 

and Order. 

9. Respondent agrees to comply with the terms of the proposed Decision and Order from the 

date that Respondent signs this Consent Agreement. Respondent understands that it may be 

liable for civil penalties and other relief for each violation of the Decision and Order after il 

becomes final. 

2 
3 

HOMEADVISOR, INC. FEDERAL TRADE COMMISSION

also d/b/a Angi Leads 

also d/b/a HomeAdvisor Powered by Angi 

By: By: 

 Shannon Shaw Sophia H. Calderón 

 Chief Legal Officer, Angi, Inc. Attorney, Northwest Region

Date: 

 

 APPROVED:

By: 

 Jennifer Barrett Charles A. Harwood

 Quinn Emanuel Urquhart & Sullivan LLP Regional Director, Northwest Region

 Attorney for Respondent 

 

 

Date: Samuel A.A. Levine 

 Director, Bureau of Consumer Protection

 Date: 

 
UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 

COMMISSIONERS: 

In the Matter of 

Lina M. Khan, Chair 

Rebecca Kelly Slaughter 

Christine S. Wilson 

Alvaro M. Bedoya 

HOMEADVISOR, INC., a corporation, 

d/b/a ANGI LEADS, 

d/b/a HOMEADVISOR POWERED BY ANGI. 

DOCKET NO. D-9407 

DRCISION AND ORDER 

The Federal Trade Commission ("Commission") issued a Complaint challenging certain acts 

and practices of the Respondent named above in the caption. The Commission's Bureau of 

Consumer Protection ("BCP") filed the Complaint, which charged the Respondent with violating 

the Federal Trade Commission Act. 

Respondent and BCP thereafter executed an Agreement Containing Consent Order ("Consent 

Agreement"). The Consent Agreement includes: (I) statements by Respondent that it neither 

admits nor denies any of the allegations in the Complaint, except as specifically stated in this 

Decision and Order, and that only for purposes of this action, it admits the facts necessary to 

estab lish jurisdiction; and (2) waivers and other provisions as required by the Commission's 

Rules. 

The Secretary of the Commission thereafter withdrew this matter from adjudication in 

accordance with Section 3.25(c) of the Commission's Rul es, 16 C.F.R. 3.25(c) ("Rule 3.25"). 

The Commission accepted the executed Consent Agreement and placed it on the public 

record for a period of 30 days for the receipt and consideration of public comments. The 

Commission duly considered any comments received from interested persons pursuant to 

Rule 2.34. Now, in further conformity with the procedure prescribed in Rule § 2.34. 3.25 (f), the 

Commission issues its Complaint, makes the following Findings and issues the following Order: 

Findings 

I. Respondent is 1-lomeAdvisor, Inc. ("HomeAdvisor"), also doing business as Angi Leads, 

also doing business as 1---lomeAdvisor Powered by Angi, a Delaware corporation with its 

principal offices or places of business at 3601 Walnut Street, Denver, Colorado 80205 

and 14023 Denver West Parkway, Golden, Colorado 80401. 

4 
2. The Commission has jurisdiction over the subject matter of this proceeding and over the 

Respondent, and the proceeding is in the pub! ic interest. 

ORDER 

Definitions 

For purposes of this Order, the following definitions apply: 

A. "Home Services" means services for home projects, such as maintenance, remodeling, 

construction, inspection, cleaning, and gardening. 

B. "Lead" means any set of information about a consumer who has expressed an interest in 

Home Services, has visited a website related to Home Services, or who has been 

identified as a potential customer of Home Services, and whose information has been 

shared by Respondent with a Service Provider who has paid Respondent for such 

information or who is enrolled or otherwise participating in Responclenl's nelwork of 

Service Providers. By way of example only, a set of information is not a Lead if it is 

shared publicly or solely for the purposes of advertising and there is no attendant cost to 

Service Providers who receive the information, e.g., a customer testimonial. 

C. "Respondent" means HomeAdvisor, Inc. and its successors and assigns. 

D. "Service Provider" means any provider of Home Services. 

Provisions 

I. Prohibited Misleading and Unsubstantiated Representations 

IT IS ORDERED that Respondent, and Respondent's officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive 

actual notice of this Order, whether acting directly or indirectly, in connection with the 

advertising, promotion, offering for sale, or selling of any product or service, must not: 

A. Misrepresent, expressly or by implication: 

1. That the Leads that Respondent sells to Service Providers: 

a. Concern individuals who intend to hire a Service Provider soon, including 

but not limited to through describing Leads using terms or phrases such as: 

1. Ready to hire; 

11. Project-ready; 

111. Not window shopping; 

1v . Not just price-shopping; or 

v. Need a project done now; 

5 
b. Exclusively concern projects that are limited to the types of services and 

geographic areas that Service Providers have specified to Respondent; or 

c. Exclusively concern individuals who submitted a request concerning 

Home Services directly to Respondent; 

2. That a product or service is free when that product or service is not free or when it 

increases the price of another product or service; or 

3. Any other fact material to consumers concerning the content or central 

characteristics of Leads; or 

B. Make any representation, expressly or by implication, about the rate at which Leads 

convert into jobs or the expected outcome of Leads, unless the representation is 

non-misleading and Respondent (l) has a reasonable basis for the claim at the time it is 

made; (2) has in its possession data or written materials to substantiate the claim at the 

time it is made; and (3) can make the data or written substantiation available upon request 

to the Commission. 

II. Monetary Relief 

IT IS FURTHER ORDERED that: 

A. Respondent must pay to the Commission $4,448,000, which Respondent stipulates its 

undersigned counsel holds in escrow for no purpose other than payment to the 

Commission. 

B. Such payment (in Provision II.A) must be made within 8 days of the effective date of this 

Order by electronic fund transfer in accordance with instructions provided by a 

representative of the Commission. 

C. Respondent must pay to the Commission an additional amount not to exceed $2,752,000, 

if notified by a representative of the Commission, to supplement the mHelpDesk redress 

fund, as described below in Provision 111.A.4. 

D. Such payment (in Provision I I.C) must be made within 8 days of such notice by 

electronic fund transfer in accordance with instructions provided by a representative of 

the Commission. 

III. Redress 

IT IS FURTHER ORDERED that: 

A. All money paid to the Commission pursuant to this Order may be deposited into a fund 

administered by the Commission or its designee to be used for relief, including consumer 

6 
redress and attendant expenses for the administration of the redress fund. Respondent has 

no ri ght to challenge any activities pursuant to this Provision. 

1. The Commission may use up to $3 ,200,000 (the "Leads Fund ") for payments of 

up to $30 per membership for relief for the practices alleged in Counts I and I I of 

the Complaint. 

2. The Commission may use up to $4,000,000 (the "mHelpDesk Fund") for 

payments of up to $59.99 per mHelpDesk membership for relief for the practices 

alleged in Count Ill of the Complaint. Payments from the mHelpDesk Fund will 

be made only upon submission of a claim or request for payment. 

3. Not more than $448,000 is to be paid from lhe mHelpDesk Fund for the 

Commission's expenses in connection with the administration of the redress fund 

and payments therefrom. 

4. 1n the event that claims against the mHelpDesk Fund ex.ceed $800,000, a 

representative of the Commission may notify Respondent of the supplemental 

dollar amount for payment by Respondent, as provided in Provision II.B, to cover 

such claims. Notice via email to Respondent's point of contact as identified 

pursuant to Provision VI I is adequate notice. 

5. The Commission may make payments from both the Leads Fund and mHelpDesk 

Fund to the same person. 

B. Within 24 months of receipt of the first payment due under Provision I I.A of this Order, a 

representative of the Commission will notify the Respondent in writing of its 

determination, based on the Commission acling in ils sole discretion to administer 

redress, of the funds unclaimed hy consumers and not needed for the administration of 

the redress fund and, within 14 days or a reasonable time, return those funds to 

Respondent. 

C. Respondent must not engage in efforts to dissuade consurners from participating in 

redress. 

IV. Additional Monetary Provisions 

IT IS FURTHER ORDERED that: 

A. Respondent relinquishes dominion and all legal and equitable right, title, and interest in 

all assets transferred pursuant to this Order and may not seek the return of any assets, 

except as provided in Provision III.B above. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in any 

subsequent civil litigation by or on behalf of the Commission to enforce its rights to any 

7 
payment pursuant to this Order, such as a nondischargeability complaint in any 

bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to sustain an action by 

or on behalf of the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy 

Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for 

such purposes. ln the event of default on any obligation to make payment under this 

Order, interest, computed as if pursuant to 28 U.S.C. § 196 l (a), shall accrue from the 

date of default to the date of payment. In the event such default continues for l O days 

beyond the date that payment is due, the entire amount will immediately become due and 

payable. 

D. Each day of nonpayment is a violation through continuing failure to obey or neglect to 

obey a final order of the Commission and thus will be deemed a separate offense and 

violation for which a civil penalty shall accrue. 

E. Respondent acknowledges that its Taxpayer Identification Number(s) (Social Security or 

Employer Identification Numbers), which Respondent has previously submitted to the 

Commission, may be used for collecting and reporting on any delinquent amount arising 

out of this Order, in accordance with 31 U.S.C. § 7701. 

V. Customer Information 

IT IS FURTHER ORDERED that Respondent must provide sufficient customer 

information to enable the Commission to efficiently administer consumer redress to current and 

former purchasers of Respondent's membership, Leads, and mHelpDesk products. Respondent 

represents that it has provided redress information to the Commission, and within 8 days of entry 

of this Order shall provide the most current contact information (including full name(s), physical 

address(es), email address(es), phone number(s)) available for all such customers. If a 

representative of the Commission requests in writing any information related to redress, 

Respondent must provide it, in the form prescribed by the Commission representative, within 14 

days. Each day of noncompliance with this provision is a violation through continuing failure to 

obey or neglect to obey a final order of the Commission and thus will be deemed a separate 

offense and violation for which a civil penalty shall accrue. 

VI. Acknowledgments of the Order 

IT IS FURTHER ORDERED that Respondent obtain acknowledgments of receipt of this 

Order: 

A. Respondent, within l O days after the effective date of this Order, must submit to the 

Commission an acknowledgment of receipt of this Order sworn under penalty of pe1jury. 

B. For IO years after the issuance date of this Order, Respondent must deliver a copy of this 

Order to: (I) all principals, officers, directors, and LLC managers and members; (2) all 

employees having managerial responsibilities for conduct related to the subject matter of 

8 
the Order and all agents and representatives who participate in conduct related to the 

subject matter of the Order; and (3) any business entity resulting from any change in 

structure as set forth in the Provision titled Compliance Report and Notices. Delivery 

must occur within l O days after the effective date of this Order for current personnel. For 

all others, delivery must occur when or before they assume their responsibilities. 

C. From each individual or entity to which Respondent delivered a copy of this Order, 

Respondent must obtain, within 30 days, a signed and dated acknowledgment of receipt 

of this Order. 

VII. Compliance Report and Notices 

IT IS FURTHER ORDERED that Respondent make timely submissions to the 

Commission: 

A. Ninety days after the effective date of this Order, Respondent must submit a compliance 

report, sworn under penalty of petjury, in which Respondent must: (a) identify the 

primary physical, postal, and email address and telephone number, as designated points 

of contact, which representatives of the Commission, may use to communicate with 

Respondent; (b) identify all of Respondent's businesses by all of their names, telephone 

numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of 

each business, including the goods and services offered, and the means of advertising, 

marketing, and sales; (d) describe in detail whether and how Respondent is in compliance 

with each Provision of this Order, including a discussion of all of the changes the 

Respondent made to comply with the Order; and (e) provide a copy of each 

Acknowledgment of the Order obtained pursuant to this Order, unless previously 

submitted to the Commission. 

B. For a period of IO years after the issuance date of this Order, Respondent must submit a 

compliance notice, sworn under penalty of petjury, within 14 days of any change in the 

following: (a) any designated point of contact; or (b) the structure of Respondent or any 

entity that Respondent has any ownership interest in or controls directly or indirectly that 

may affect compliance obligations arising under this Order, including: creation, merger, 

sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any 

acts or practices subject to this Order. 

C. Respondent must submit notice of the fi I ing of any bankruptcy petition, insolvency 

proceeding, or similar proceeding by or against Respondent within 14 days of its filing. 

D. Any submission to the Commission required by this Order to be sworn under penalty of 

petjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: "I declare under penalty of perjury under the laws of the United States of 

America that the foregoing is true and correct. Executed on: __ " and supplying the 

date, signatory's full name, title (if applicable), and signature. 

9 
E. Unless otherwise directed by a Commission representative in writing, all submissions to 

the Commission pursuant to this Order must be emailed to DEbrief@ftc .gov or sent by 

overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue 

NW, Washington, DC 20580. The subject line must begin: In re HomeAdvisor, Inc. , D9407. 

VIII. Recordkeeping 

IT IS FURTHER ORDERED that Respondent must create certain records for IO years after 

the issuance date of the Order, and retain each such record for 5 years, unless otherwise specified 

below. Specifically, Respondent must create and retain the following records: 

A. accounting records showing the revenues from all goods or services sold; 

B. personnel records showing, for each person providing services, whether as an employee 

or otherwise, that person 's: name ; addresses; telephone numbers; job titl e or positi on; 

dates of service; and (if applicable) the reason for termination; 

C. records of all consumer complaints and refund requests, whether received directly or 

indirectly, such as through a third party, and any response; 

D. a copy of each unique advertisement or other marketing mate1'ial making a representation 

subject to this Order; and 

E. all records necessary to demonstrate full compliance with each provision of this Order, 

including all submissions to the Commission. 

IX. Compliance Monitoring 

IT IS FURTHER ORDERED that, for the purpose of monitoring Respondent's 

compliance with this Order: 

A. Within 10 days of receipt ofa written request from a representative of the Commission, 

Respondent must: submit additional compliance reports or other requested information, 

which must be sworn under penalty of peijury, and produce records for inspection and 

copymg. 

B. For matters concerning this Order, representatives of the Commission are authori zed to 

communicate directly with Respondent. Respondent must permit representatives of the 

Commission to interview anyone affiliated with Respondent who has agreed to such an 

interview. The interviewee may have counsel present. 

C. The Commission may use all other lawful means, including posing through its 

representatives as consumers, suppliers, or other individuals or entities, to Respondent or 

10 
any individual or entity affiliated with Respondent, without the necessity of identification 

or prior notice. Nothing in this Order limits the Commission 's lawful use of compulsory 

process, pursuant to Sections 9 and 20 of the FTC Act, 15 U. S .C. § § 49, 57b- I . 

X. Order Effective Dates 

IT IS FURTHER ORDERED that the final and effective date of this Order is the 60th day 

after this Order is served. This Order will terminate 20 years from the date of its issuance (which 

date may be stated at the end of this Order, near the Commission's seal), or 20 years from the 

most recent date that the United States or the Commission files a complaint (with or without an 

accompanying settlement) in federal court alleging any violation of this Order, whichever comes 

later; provided, however, that the filing of such a complaint will not affect the duration of: 

A. Any Provision in this Order that terminates in less than 20 years; 

8. This Order's application to any Respondent that is not named as a defendant in such 

complaint; and 

C. This Order if such complaint is filed after the Order has terminated pursuant to this 

Provision. 

Provided, further, that if such complaint is dismissed or a federal court rules that the Respondent 

did not violate any provision of the Order, and the dismissal or ruling is either not appealed or 

upheld on appeal, then the Order will terminate according to this Provision as though the 

complaint had never been filed, except that the Order will not terminate between the date such 

complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date 

such dismissal or ruling is upheld on appeal. 

By the Commission. 

[April .I. Tabor] 

Secretary 

[SEAL] 

ISSUED: 

11 
________________________________________________ 

________________________________________________ 

1923106 

UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 

COMMISSIONERS: Lina M. Khan, Chair 

Noah Joshua Phillips 

Rebecca Kelly Slaughter 

Christine S. Wilson 

In the Matter of Docket No. 9407 

Public version 

HOMEADVISOR, INC., a corporation, 

d/b/a ANGI LEADS, 

d/b/a HOMEADVISOR POWERED BY ANGI. 

COMPLAINT 

The Federal Trade Commission, having reason to believe that HomeAdvisor, Inc., a 

corporation, has violated the provisions of the Federal Trade Commission Act, and it appearing 

to the Commission that this proceeding is in the public interest, alleges: 

1. Respondent HomeAdvisor, Inc. (“HomeAdvisor”), also doing business as Angi Leads, 

also doing business as HomeAdvisor Powered by Angi, is a Delaware corporation with its 

principal offices or places of business at 3601 Walnut Street, Denver, Colorado 80205 and 14023 

Denver West Parkway, Golden, Colorado 80401. 

2. HomeAdvisor has marketed, advertised, offered for sale, and sold products to home 

service providers, including leads, HomeAdvisor memberships, and mHelpDesk. 

3. The acts and practices of HomeAdvisor alleged in this complaint have been in or 

affecting commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission 

Act. 

Summary of the Matter 

4. HomeAdvisor collects information about potential customers for home services like 

kitchen remodels or lawn care, and sells that information to service providers in its network, such 

as general contractors and gardeners, as leads. 
 - 5. HomeAdvisor recruits service providers, primarily small businesses, through marketing 

materials and sales agents who call service providers and attempt to persuade them 

to join HomeAdvisor’s network. To join HomeAdvisor’s network, a service provider pays an 

annual membership fee of $287.99 in addition to paying for each lead, which can range from 

. 

6. Since at least July 2014, HomeAdvisor, through its sales agents and marketing materials, 

has made representations to service providers about the quality, characteristics, and source of 

HomeAdvisor’s leads that are false, misleading, or unsubstantiated. HomeAdvisor represents 

that its leads concern people who intend to hire a service provider soon, even though many of 

them do not. HomeAdvisor represents that service providers will only receive leads that match 

the types of services they provide and their geographic preferences, even though many service 

providers receive leads that do not match the types of services they provide or their geographic 

preferences. HomeAdvisor represents that its leads concern people who knowingly sought its 

assistance in selecting a service provider, even though many of the leads HomeAdvisor sells are 

purchased from third parties who collect information from potential customers without first 

revealing their affiliation with HomeAdvisor. In addition, HomeAdvisor represents to service 

providers that its leads convert into jobs at rates well above what HomeAdvisor can substantiate. 

7. Since at least 2015, HomeAdvisor’s sales agents have also misrepresented the cost of an 

optional one-month subscription to a field service software, mHelpDesk, which assists service 

providers with tasks like scheduling appointments and processing payments. Whereas 

HomeAdvisor has represented to service providers that the first month of the mHelpDesk 

subscription is free with an annual membership, in fact, the first month of the subscription 

increases the cost of the annual membership by $59.99. 

8. Based on HomeAdvisor’s false, misleading, or unsubstantiated representations about the 

quality, characteristics, and source of HomeAdvisor’s leads and the rates at which those leads 

convert into jobs, service providers agree to join HomeAdvisor’s network, paying an upfront 

(and often inflated) membership fee, followed by additional fees for each lead they receive. 

Service providers, already busy with the demands of running small businesses, expend precious 

time following up on leads that are not of the quality HomeAdvisor promises, and still more time 

seeking, often unsuccessfully, credits and refunds from HomeAdvisor for such leads. 

9. HomeAdvisor’s deceptive practices have caused service providers to suffer of 

dollars of injury. 

HomeAdvisor’s Business Practices

HomeAdvisor’s Lead Product

10. Every year, HomeAdvisor sells of leads to service providers in its network. 

 the leads that HomeAdvisor sells consist of information submitted by visitors to 

HomeAdvisor’s website, homeadvisor.com. The website’s homepage states: “Find trusted local

pros for any home project,” and prompts the visitor to answer a series of questions about a 

2 
 

 

 

-

project and provide contact information. A visitor can also browse a directory of service 

providers on HomeAdvisor’s website.

11. Using the information visitors submit to its website, HomeAdvisor sells a variety of lead 

types to service providers, including “Market Match Leads,” “Exact Match Leads,” and “Instant 

Booking Leads.”

12. of the leads HomeAdvisor sells to service providers are Market Match Leads. 

HomeAdvisor generates Market Match Leads from its website when a visitor follows the 

prompts and answers several questions about a home project. With the exception of an optional 

field that allows the visitor to provide further details about the project, the questions are multiple 

choice with one answer option often pre-selected by default. Based on a subset of the visitor’s 

answers, HomeAdvisor uses an automated matching system to identify service providers in 

HomeAdvisor’s network to whom HomeAdvisor sends the information provided by the visitor as 

a lead. 

13. HomeAdvisor generates Exact Match and Instant Booking Leads from visitors who 

browse the directory of service providers on HomeAdvisor’s website. The directory consists of 

service provider listings that include a description of each service provider’s work and reviews. 

Many service provider listings also include an appointment calendar. HomeAdvisor generates an 

Exact Match Lead when a visitor selects a specific service provider from the directory and 

submits project and contact information directly to that service provider. HomeAdvisor 

generates an Instant Booking Lead when a visitor makes an appointment with a specific service 

 of the leads 

HomeAdvisor sells to service providers are Exact Match Leads and approximately are 

provider via a web-based application on the directory. Approximately 

Instant Booking Leads. 

14. In addition to selling leads to service providers that are generated from visitors’ 

interactions with HomeAdvisor’s website, HomeAdvisor has resold of leads that it has 

purchased from third parties (“affiliates”). Affiliates generate these leads from webbased forms 

 In many cases, the 

internet users do not know that their information will be shared with HomeAdvisor until they 

complete the form, if at all. 

15. HomeAdvisor also sells leads to service providers that are generated when HomeAdvisor 

customer representatives input information provided over the phone by potential customers of 

home services. HomeAdvisor’s telephone-generated leads 

3 
 

 

■ -

■ 

-

16. 

17. 

18. In order to receive leads from HomeAdvisor, service providers must first pass a 

background check and join HomeAdvisor’s network by purchasing a membership. 

HomeAdvisor regularly sold a membership package for $347.98 that included a one-month 

subscription to mHelpDesk, a field service software produced by a subsidiary of HomeAdvisor. 

After the first month, the mHelpDesk subscription automatically renewed at $59.99 per month 

unless service providers cancelled it. 

19. Upon purchasing a HomeAdvisor membership, service providers receive leads, including 

Market Match, Exact Match, and Instant Booking Leads. The price of a Market Match Lead 

ranges from approximately $ to $ , depending on the type of home project it concerns (e.g., 

a kitchen remodel will typically be priced higher than house cleaning), and the geographic 

location of the project. Exact Match and Instant Booking Leads cost fifty percent more than 

Market Match Leads of the same project type and location. The average price of a lead, across 

lead types, is approximately $ . 

20. Service providers pay HomeAdvisor for each Market Match, Exact Match, or Instant 

Booking Lead they receive. Service providers limit the number of Market Match and Exact 

Match Leads they receive by setting an approximate monthly lead budget in their HomeAdvisor 

account. 

 HomeAdvisor also allows a service provider to “pause” receiving Market Match, Exact

Match, and Instant Booking Leads for a limited time, after which the leads will automatically 

resume. 

21. HomeAdvisor does not allow service providers to preview leads prior to receiving them. 

If a service provider is dissatisfied with a lead she receives from HomeAdvisor, her primary 

4 
 

recourse is to request a credit to her HomeAdvisor account for the cost of the lead in question. If 

HomeAdvisor grants the credit request, HomeAdvisor then applies the credit against the cost of 

future leads. HomeAdvisor does not generally provide refunds for leads. 

22. Service providers can submit lead credit requests by speaking with a HomeAdvisor 

customer service representative who submits the credit request on the service provider’s behalf. 

Service providers can also submit lead credit requests online via their HomeAdvisor account. To 

submit a lead credit request, a service provider must provide the reason the service provider 

thinks a credit is appropriate. HomeAdvisor grants lead credit requests at its discretion based on 

a variety of factors, including 

Since 

July 2014, HomeAdvisor has denied more than lead credit requests, approximately 

percent of those submitted. 

HomeAdvisor’s Misrepresentations About Its Leads

23. HomeAdvisor employs of sales agents who call service providers around the 

country and attempt to persuade them to join HomeAdvisor’s network. A service provider can 

only join HomeAdvisor’s network by speaking to a HomeAdvisor representative over the phone.

24. In their sales calls with service providers, many of HomeAdvisor’s sales agents, 

 make false, misleading, or unsubstantiated representations about the 

quality, characteristics, and source of HomeAdvisor’s leads and the rates at which those leads 

convert into jobs. 

Misrepresentations About Intent to Hire 

25. In numerous instances, HomeAdvisor’s sales agents have represented to service providers 

that HomeAdvisor’s leads concern people who intend to hire a service provider soon. For 

example, in sales calls HomeAdvisor’s sales agents have described the leads as follows:

5 
 

 

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Benefits of Joining 

Can Angi Leads increase a service professional's profits? 

Absolutely. You won1 have to waste your time with customers who just window-shop. Angi Leads allows you to spend your time with the right ·ready-to-buy"' customers. We do 

our best to fully educate customers about the scope, cost, and timing of their projects. Then we'll match them with you, based on your preferences for job type and location. 

26. Indeed, HomeAdvisor has provided its sales agents with a list of marketing claims 

approved for use in sales calls that include

 and 

27. HomeAdvisor’s external marketing materials make similar representations. On its 

website, HomeAdvisor prominently displays a “How It Works” video for service providers that

states, “With HomeAdvisor’s patented ProFinder technology, you’re only matching to serious 

homeowners in your area.”

28. Another portion of its website represents to service providers: “When you’re a [member

of HomeAdvisor’s service provider network], HomeAdvisor matches you with homeowners 

actively seeking the services you provide in your area.”

Illustration 1: available at https://pro.homeadvisor.com/r/membership/#membership (last visited August 9, 2021) 

29. Yet another page on HomeAdvisor’s website states, “You won’t have to waste your time 

with customers who just window-shop. Angi Leads allows you to spend your time with the right 

‘ready-to-buy’ customers.”

Illustration 2: available at https://pro.homeadvisor.com/help/faqs/ (last visited August 9, 2021) 

30. Other marketing materials describe HomeAdvisor’s leads as “project requests” and 

advertise HomeAdvisor as a means for service providers to “connect with project-ready 

homeowners.”

6 
 

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Q Cal II) rm, OUUIIOJ: ~ n ~n 

SNn M..- t-30}49> UH 

Connect M1tl P!91!C!·wdy homtowotf'5 toct,ryl 

Werecerved 

project requests 

WI Danvw last month 

l~o,:o.-,..,,.t="f'IW!ntr..,._ »--_.... .. ~ 1>.,...,..,, .. ,_ ANEW 

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CC,.01 • 

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Illustration 3: email marketing sent to prospective service provider members 

31. Contrary to HomeAdvisor’s representations, many of the leads that HomeAdvisor sells to 

service providers do not concern people who intend to hire a service provider soon. 

32. Indeed, HomeAdvisor sells information to service providers as leads even when internet 

users affirmatively indicate that they do not intend to hire a service provider soon. For example, 

one of the questions that a user typically must answer about a home project is whether its status 

and many of the 

leads that HomeAdvisor sells to service providers concern people who described their project 

is “Ready to Hire” or only “Planning & Budgeting.” Similarly, another question that a visitor 

typically must answer is how soon they would like the project completed (e.g., “Timing is 

flexible,” “Within 1 week,” “1-2 weeks,” or “More than 2 weeks”). Yet another question asks

whether the internet user is “the owner or authorized to make property changes.”

status only as “Planning & Budgeting,” provided an indefinite timeframe for completion, 

7 
33. 

34. 

Misrepresentations About Leads Matching Types of Work and Geographic Preferences 

35. In numerous instances, HomeAdvisor’s sales agents have told service providers that the 

leads they will receive concern home services projects that match the type of work and 

geographic preferences that service providers express to HomeAdvisor. For example, in sales 

calls HomeAdvisor’s sales agents have described the leads as follows:

36. Indeed, scripts used by HomeAdvisor sales agents describe HomeAdvisor’s leads as

follows: 

(emphasis original) 

37. HomeAdvisor’s marketing materials make similar representations. Its website states, 

“Tell us what you do and where, and we deliver prospects that meet your exact needs.”

8 
Helping You Grow Your Business 

One Homeowner at a Time 

• Connect with the Targeted Prospects You Need to Succeed 

Tell us what you do and where. and we deliver prospects 

that meet your exact needs. 

• Stay in Control and in Charge of Your Business 

You control your budget and lead preferences. 

• Leap Ahead of the Competition to Win More Jobs 

Our lead management tools keep you organized and in touch 

with the hOmeowners you need to grow your business. 

Sign Up Today Learn More > 

You're In Control 

Only Get the 

Leads You Want 

You pick your service types and location 

preferences and we bring you prospects that 

match what you want 

Illustration 4: available at https://pro.homeadvisor.com/ (last visited August 9, 2021) 

38. Another page on its website has stated, “Only Get the Leads You Want. You pick your 

service types and location preferences and we bring you prospects that match what you want.”

Illustration 5: previously available at https://pro.homeadvisor.com/how-it-works/ 

39. In fact, contrary to HomeAdvisor’s representations, many of the leads that service 

providers receive do not concern the type of work that the service providers perform, or fall 

outside of the service providers’ geographic preferences. For example, 

9 
 

 

 

40. 

41. 

Misrepresentations About Lead Source 

42. HomeAdvisor’s sales agents also have frequently represented to service providers that 

HomeAdvisor’s leads concern people who knowingly sought HomeAdvisor’s assistance in 

selecting a service provider. For example, in sales calls HomeAdvisor’s sales agents have 

described the source of HomeAdvisor’s leads as follows:

43. Indeed, scripts used by HomeAdvisor’s sales agents state, 

44. HomeAdvisor’s marketing materials have also represented that HomeAdvisor’s leads

concern people who knowingly sought HomeAdvisor’s assistance in selecting a service provider.

HomeAdvisor’s website has described Market Match Leads as follows: “Consumers come to 

HomeAdvisor.com and give us detailed info about their project.”

10 
 

-

-

Market Match 

-,,,,., 

Get Started 

Consumers come to HomeAdVisor.com and 

give us detailed info about their project. We 

match that info with your work and area 

preferences, and connect you with 

homeowners that match your needs. 

-

Illustration 6: previously available at https://www.homeadvisor.com/rfs/enroll/sppostenrollleadsdetails 

45. In fact, contrary to HomeAdvisor’s representations, of the leads that HomeAdvisor

sells to service providers are purchased from affiliates and concern individuals who did not 

knowingly seek HomeAdvisor’s assistance. Since July 2014, HomeAdvisor has sold service 

providers of leads that HomeAdvisor purchased from affiliates and did not come from 

HomeAdvisor’s website. 

46.

 HomeAdvisor recognizes that it has very limited control over the quality of affiliategenerated leads. Indeed, a document HomeAdvisor’s parent company filed publicly with the 

Securities and Exchange Commission acknowledged that “the quality and convertibility of 

[HomeAdvisor’s] leads generated through third-party arrangements are dependent on many 

factors, most of which are outside our control.”

47. 

11 
 

Misrepresentations About the Rates at Which Leads Convert into Jobs 

48. In numerous instances, HomeAdvisor’s sales agents have represented to service providers 

that HomeAdvisor’s leads convert into jobs at rates well above what HomeAdvisor can 

substantiate. 

49. According to HomeAdvisor’s own calculations, 

the average rate at which a lead purchased by a service provider 

turns into a job for that service provider ( the “win rate”) has ranged between 

 since July 2014. 

50. Similarly, according to HomeAdvisor’s own calculations, the average win rate for Market 

Match Leads— —has ranged 

between since July 2014. In that same period, the average win 

rate for Exact Match Leads has ranged between and the 

average win rate for Instant Booking Leads has ranged between 

51. Nonetheless, HomeAdvisor’s sales agents have represented falsely inflated 

win rates to service providers. For example, in sales calls HomeAdvisor’s sales agents have 

described the leads as follows: 

52. Indeed, 

53. HomeAdvisor’s department has perpetuated inflated win rate 

representations on sales calls. 

12 
 

 

-

HomeAdvisor’s Deceptive mHelpDesk Sales Practices

54. In numerous instances, HomeAdvisor’s sales agents have represented to service providers 

that the cost of an annual membership is $347.98, and includes a free one-month subscription to 

mHelpDesk. 

55. For example, in sales calls HomeAdvisor’s sales agents have described mHelpDesk as 

follows: 

56. Indeed, HomeAdvisor’s training materials have perpetuated sales agents’ representations

that the first month of mHelpDesk is free. Scripts used by HomeAdvisor’s sales agents—

57. Similarly, until at least 2016, the form email that HomeAdvisor sent service providers 

confirming their purchase of an annual membership represented that $347.98 was the cost of the 

annual membership and a “free” month of mHelpDesk.

58. In fact, the cost of an annual membership is $287.99. The $347.98 price has represented 

the cost of an annual membership plus one month of mHelpDesk, an optional, add-on product 

that costs $59.99 per month and automatically renews after the first month. If a service provider 

does not want a one-month subscription to mHelpDesk, she can purchase an annual membership 

for $287.99. 

13 
 

59. After HomeAdvisor’s sales agents have added a month of mHelpDesk to service 

providers’ annual memberships, service providers frequently have not learned that they were

charged an additional $59.99 because the $347.98 charge has appeared as a single line item on 

the service provider’s receipt and credit card bill.

60. Of the more than service providers who have been charged $347.98 for an 

annual membership and a one-month subscription to mHelpDesk, 

Count I 

Misrepresentations About the Quality, Characteristics, and Source of Leads 

61. In numerous instances in connection with the advertising, marketing, promotion, offering 

for sale, or sale of leads, HomeAdvisor represents to service providers, directly or indirectly, 

expressly or by implication, that the leads service providers will receive: 

a. concern individuals who intend to hire a service provider soon; 

b. concern projects that match the types of services that service providers have 

expressed they perform; 

c. concern projects that match the geographic areas that service providers have 

expressed they serve; or 

d. concern individuals who knowingly sought HomeAdvisor for assistance in 

selecting a service provider. 

62. In truth and in fact, in numerous instances in which HomeAdvisor has made the 

representations set forth in Paragraph 61, the leads service providers received, respectively: 

a. did not concern individuals who intend to hire a service provider soon; 

b. did not concern projects that match the types of services that service providers 

have expressed they perform; 

c. did not concern projects that match the geographic areas that service providers 

have expressed they serve; or 

d. did not concern individuals who knowingly sought HomeAdvisor for assistance in 

selecting a service provider. 

63. Therefore, HomeAdvisor’s representations as set forth in Paragraph 61 are false or 

misleading. 

14 
Count II 

Misrepresentations About the Rates at which Leads Convert into Jobs 

64. In numerous instances in connection with the advertising, marketing, promotion, offering 

for sale, or sale of leads, HomeAdvisor represents to service providers, directly or indirectly, 

expressly or by implication, that the leads convert into jobs at or above the rates that 

HomeAdvisor states. 

65. The representations set forth in Paragraph 64 are false or misleading or were not 

substantiated at the time the representations were made. 

Count III 

Misrepresentations Regarding mHelpDesk 

66. In numerous instances in connection with the advertising, marketing, promotion, offering 

for sale, or sale of leads, HomeAdvisor has represented to service providers, directly or 

indirectly, expressly or by implication, that the first month of mHelpDesk is free. 

67. In truth and in fact, in numerous instances in which HomeAdvisor has made the 

representations set forth in Paragraph 66, the first month of mHelpDesk is not free. 

68. Therefore, HomeAdvisor’s representations as set forth in Paragraph 66 are false or 

misleading. 

Violations of Section 5 

69. The acts and practices of HomeAdvisor as alleged in this complaint constitute unfair or 

deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal 

Trade Commission Act. 

NOTICE 

You are notified that on November 9, 2022, at 10:00 a.m., at the Federal Trade 

Commission offices, 600 Pennsylvania Avenue, NW, Room 532-H, Washington, DC 20580, an 

Administrative Law Judge of the Federal Trade Commission, will hold a hearing on the charges 

set forth in this Complaint. At that time and place, you will have the right under the Federal 

Trade Commission Act to appear and show cause why an order should not be entered requiring 

you to cease and desist from the violations of law charged in this Complaint. 

You are notified that you are afforded the opportunity to file with the Federal Trade 

Commission (“Commission”) an answer to this Complaint on or before the 14th day after service 

of the Complaint upon you. An answer in which the allegations of the Complaint are contested 

must contain a concise statement of the facts constituting each ground of defense; and specific 

admission, denial, or explanation of each fact alleged in the Complaint or, if you are without 

knowledge thereof, a statement to that effect. Allegations of the Complaint not thus answered 

will be deemed to have been admitted. 

15 
 

 

 

If you elect not to contest the allegations of fact set forth in the Complaint, the answer 

should consist of a statement that you admit all of the material facts to be true. Such an answer 

will constitute a waiver of hearings as to the facts alleged in the Complaint and, together with the 

Complaint, will provide a record basis on which the Commission may issue a final decision 

containing appropriate findings and conclusions and a final order disposing of the proceeding. In 

such answer, you may, however, reserve the right to submit proposed findings of fact and 

conclusions of law under FTC Rule § 3.46. 

Failure to answer timely will be deemed to constitute a waiver of your right to appear and 

contest the allegations of the Complaint. It will also authorize the Commission, without further 

notice to you, to find the facts to be as alleged in the Complaint and to enter a final decision 

containing appropriate findings and conclusions and a final order disposing of the proceeding. 

The Administrative Law Judge will hold an initial prehearing scheduling conference to be 

held not later than 10 days after the answer is filed by the Respondent. Unless otherwise directed 

by the Administrative Law Judge, the scheduling conference and further proceedings will take 

place at the Federal Trade Commission, 600 Pennsylvania Avenue, NW, Room 532-H, 

Washington, DC 20580. Rule 3.21(a) requires a meeting of the parties’ counsel as early as 

practicable before the prehearing scheduling conference, but in any event no later than 5 days 

after the answer is filed by the Respondent. Rule 3.31(b) obligates counsel for each party, within 

5 days of receiving a Respondent’s answer, to make certain initial disclosures without awaiting a 

formal discovery request. 

The following is the form of the order which the Commission has reason to believe 

should issue if the facts are found to be as alleged in the Complaint. If, however, the 

Commission concludes from record facts developed in any adjudicative proceedings in this 

matter that the proposed order provisions as to Respondent might be inadequate to fully protect 

the consuming public, the Commission may order such other relief as it finds necessary and 

appropriate, including corrective advertising or other affirmative disclosures. 

Moreover, the Commission has reason to believe that, if the facts are found as alleged in 

the Complaint, it may be necessary and appropriate for the Commission to seek relief to redress 

injury to consumers. Such relief could be in the form of restitution for past, present, and future 

consumers and such other types of relief as are set forth in Section 19(b) of the Federal Trade 

Commission Act. The Commission will determine whether to apply to a court for such relief on 

the basis of the adjudicative proceedings in this matter and such other factors as are relevant to 

consider the necessity and appropriateness of such action. 

NOTICE OF CONTEMPLATED RELIEF 

If the Commission concludes from the record developed in any adjudicative proceedings 

in this matter that Respondent has violated or is violating Section 5 of the FTC Act, the 

Commission may order such relief against Respondent as is supported by the record and is 

necessary and appropriate, including but not limited to: 

16 
a. A prohibition on misrepresentations, including false or unsubstantiated claims, in

connection with the promoting, advertising, marketing, offering for sale, or selling of

any product or service.

b. A requirement that, for a period of time, Respondent must send acknowledgments of

the order to the Commission.

c. A requirement that, for a period of time, Respondent must create and retain certain

business records.

d. A requirement that, for a period of time, Respondent must provide prior notice to the

Commission of all new business activity.

e. A requirement that, for a period of time, Respondent must submit compliance reports

to the Commission.

f. Provisions to enable the Commission to monitor Respondent’s compliance with the

order.

g. Any other relief appropriate to correct or remedy the effects of Respondent’s unfair or

deceptive practices or of any or all of the conduct alleged in the complaint.

THEREFORE, the Federal Trade Commission this 11th day of March, 2022, has issued this

Complaint against Respondent. 

By the Commission. 

April J. Tabor 

Secretary 

SEAL: 

17