Gig Economy Platform Angi Services to Settle FTC Complaint

The Federal Trade Commission (FTC) and the New York attorney general aim to require gig economy platform Handy Technologies, which currently does business as Angi Services, to pay $2.95 million and make “substantial” changes to its business practices.

The authorities allege the company deceived workers about how much they could earn on the platform and failed to clearly disclose fees and fines, they said in a Tuesday (Jan. 7) press release.

“Handy Technologies relied on inflated and false earnings claims to lure workers onto its platform,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in the release. “It then deducted inadequately disclosed fines and fees from their wages.”

Reached by PYMNTS, a Handy spokesperson said in an emailed statement that the agencies’ allegations were unfair.

“Though we were prepared to litigate, we chose to enter into an agreement with these parties to put this matter to rest and get back to putting our 100% focus on supporting our customers: the small businesses who help Americans care for and maintain their homes,” the statement said. “None of the agencies’ allegations were fair, and this settlement should in no way be construed as a validation of their allegations.”

In their complaint, the FTC and the New York Attorney General alleged that the company advertised specific amounts that the workers who did gig jobs through its platform would be paid and said that they would be paid “as soon as the job is done,” according to the release.

In fact, the complaint alleges, the advertised amounts could not be achieved by most workers, the workers were generally paid seven days after completing the work, and those who wanted to be paid sooner had to pay an additional fee, the release said.

The complaint also alleges that Handy Technologies regularly charged workers fees and fines that it failed to adequately disclose. In some cases, workers were fined for issues they could not control, such as when a customer told the worker not to show up for a scheduled job, per the release.

Handy has agreed to a proposed settlement, according to the release.

“Apps like Handy’s offer New Yorkers flexible job opportunities, but they cannot be allowed to lure workers with lies and false promises,” New York Attorney General Letitia James said in another Tuesday press release. “Together with our partners at the FTC, we are holding Handy accountable and requiring the company to pay $2.95 million back to thousands of workers who were misled.”

In some other recent moves, the FTC has taken action against companies it alleged made deceptive claims about products, misrepresented ratings and reviews, and charged hidden fees.