Analysis of Proposed Consent Order to Aid Public Comment

In the Matter of HomeAdvisor, Inc., Docket No. 9407

The Federal Trade Commission (“FTC” or “Commission”) has accepted, subject to final 

approval, an agreement containing a consent order from HomeAdvisor, Inc. (“HomeAdvisor”).

The proposed consent order has been placed on the public record for thirty (30) days for 

receipt of comments by interested persons. Comments received during this period will become 

part of the public record. After thirty (30) days, the Commission will again review the 

agreement and the comments received and will decide whether it should withdraw from the 

agreement and take appropriate action or make final the agreement’s proposed order.

This matter involves HomeAdvisor’s advertising and sale of its membership and leads 

products to home service providers. Count I of the complaint alleges HomeAdvisor violated 

Section 5(a) of the FTC Act by disseminating advertisements and marketing that misrepresent 

that HomeAdvisor’s leads: (1) concern individuals who intend to hire service providers soon, 

(2) will match the types and locations of work selected by service providers, and (3) concern 

individuals who intentionally sought out HomeAdvisor’s assistance in finding a service provider. 

Count II of the complaint alleges that HomeAdvisor disseminated false and unsubstantiated 

advertisements and marketing concerning the rate at which HomeAdvisor’s leads convert into 

paying jobs. Count III of the complaint alleges that HomeAdvisor misrepresented that the first 

month of its mHelpDesk add-on subscription was free.

The proposed consent order includes injunctive relief that addresses these alleged 

violations and contains provisions designed to prevent HomeAdvisor from engaging in similar 

acts and practices in the future. The proposed consent order also requires HomeAdvisor to pay 

up to $7,200,000 to the Commission to be used for consumer redress.

Provision I prohibits HomeAdvisor from making false and/or unsubstantiated 

representations regarding its products. Provision I.A prohibits HomeAdvisor from 

misrepresenting central characteristics of its leads, including that the leads concern individuals 

who intend to hire service providers soon, that they concern projects that will match service 

providers’ stated task type and location preferences, and that they concern individuals who 

submitted a request concerning home services directly to HomeAdvisor. Provision I.A also 

prohibits HomeAdvisor from misrepresenting products as free. Provision I.B prohibits 

HomeAdvisor from making any representation regarding the rate at which HomeAdvisor’s leads 

convert into paying jobs unless that representation is non-misleading and supported by data or 

written materials in HomeAdvisor’s possession when the claim is made.

Provision II requires HomeAdvisor to pay up to $7,200,000 to the Commission for 

purpose of consumer redress, with an initial payment of $4,448,000.

Provision III provides for a redress program that would administer two redress funds. 

The first fund would make payments of up to $30 to service providers identified as affected by 

the practices at issue in Counts I and II of the complaint. The second fund would make 

payments of up to $59.99 to service providers identified as affected by the practices at issue in 
Count III of the complaint and who submit a claim for payment. The Commission or its 

designee will administer the redress programs, with expenses to be paid from the redress funds.

Provision IV contains language necessary to aid in the enforceability by the Commission

of any debt accruing pursuant to this proposed order, including, but not limited to, in any 

subsequent bankruptcy litigation.

Provision V requires HomeAdvisor to provide the Commission with customer 

information necessary to administer the redress program.

Provisions VI through IX of the proposed order relate to compliance reporting and 

monitoring. Provision VI is an order acknowledgment and distribution provision requiring 

HomeAdvisor to acknowledge the order, to provide the order to current and future owners, 

managers, business partners, certain employees, and to obtain an acknowledgement from each 

such person that they received a copy of the order. Provision VII requires HomeAdvisor to

submit a compliance report ninety days after the order is entered, and to promptly notify the 

Commission of corporate changes that may affect compliance obligations. Provision VIII 

requires HomeAdvisor to maintain, and upon request make available, certain compliance-related 

records. Provision IX requires HomeAdvisor to provide additional information or compliance 

reports, as requested.

Provision X states that the proposed order will remain in effect for 20 years, with certain 

exceptions.

The purpose of this analysis is to aid public comment on the proposed order. It is not 

intended to constitute an official interpretation of the complaint or proposed order, or to modify 

in any way the proposed order’s terms.