Attorney General James and FTC Secure $2.95 Million from Angi Services for Misleading Workers about Hourly Wages

 

Handy Technologies, Inc., an Angi Inc. Subsidiary, Misleadingly Inflated Hourly Rates in Advertisements to Lure in Workers

New York Attorney General Letitia James and the Federal Trade Commission (FTC) secured $2.95 million from Angi Services, the operator of the online platform Handy Technologies that allows users to hire workers for household services, for misleading workers about the hourly rates they would be paid. An investigation by the Office of the Attorney General (OAG) and FTC found that Handy ran tens of thousands of ads across New York, including in New York City, the Hudson Valley, and Western and Central New York, that inflated the wages workers would earn on the app. In some cases, Handy paid workers nearly 50 percent less than the advertised hourly rate for a certain service. Handy’s ads also misleadingly stated that workers would be paid daily, while in reality workers were typically paid nearly a week after completing a job unless they paid a fee. Today’s consent order requires Handy to pay $2.95 million to thousands of workers and ensure that its advertisements are accurate, and that fines and fees are properly disclosed.

“New York workers deserve to be paid what they are promised, when they are promised,” said Attorney General James. “Apps like Handy’s offer New Yorkers’ flexible job opportunities, but they cannot be allowed to lure workers with lies and false promises. 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. My office will never hesitate to take action against companies that cheat hardworking New Yorkers.”

“Handy Technologies relied on inflated and false earnings claims to lure workers onto its platform. It then deducted inadequately disclosed fines and fees from their wages,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This order announced puts a stop to these unlawful practices and ensures an honest marketplace for American workers.”

Handy operates an online platform through which workers, referred to as Pros, can claim household service jobs, such as home cleaning, handyperson services, furniture assembly, and lawn care. To entice workers onto its platform, Handy has run tens of thousands of advertisements throughout the state, including in New York City, Westchester, the Hudson Valley, and the Finger Lakes, touting the wages that workers earn.

However, Handy’s advertised earnings were frequently false, unsubstantiated, or misleading. For example, in 2021 Handy ran an advertisement in approximately 100 regions that claimed Lawn Care Pros earn “up to $53/hr.”  However, in nearly all of these regions, only 10 percent or less of Pros earned the advertised rate, with a median rate of pay that was less than $27 per hour. In September 2022, Handy ran advertisements in the Hudson Valley claiming that Lawn Care Pros “Earn at least $28/hour.”  However, according to Handy’s own data, only approximately 25 percent of Lawn Care Pros in the region earned the advertised rate. 

Handy’s advertisements also made deceptive claims about how quickly workers would be paid. In thousands of job postings and ads, Handy stated that Pros would be “Paid Daily” or could cash out “as soon as the job is done.”  However, Pros were typically paid within seven days of completing a job. To be paid sooner than the seven-day default, Pros were required to pay Handy a $1.99 fee, which was not disclosed in Handy’s ads. In addition, the only Pros who were eligible to be paid daily were those who were “tenured,” meaning they had already been paid $50 for a completed Handy job.

Additionally, Handy failed to disclose the complicated, multi-step protocol workers were required to follow to avoid a fine when a customer failed to provide access to a job site or instructed a worker not to show up. These situations, referred to as “Customer No Show” or “CNS” took place through no fault of the Pro. However, because the job appears incomplete, Handy classifies them as a “Pro No Show” or “PNS,” and imposes a fine on the Pro, typically $50. To avoid the fine, Handy required that Pros allow the Handy app to access their phone’s GPS location, then check in through the app upon arrival at the job site, then attempt to reach the customer in a way that Handy can track through the Pro’s phone, and if unable to reach the customer, Pros have to wait at the job site for 30 minutes while continuing to reach out to the customer. The OAG and FTC found that Handy failed to adequately disclose that Pros must comply with this multi-step, invasive protocol and follow all of these steps to avoid being charged. Many Pros only learned of the protocol when disputing the fine, at which point it was too late.

The agreement requires Handy to pay $2,950,000 to thousands of workers and requires that the claims Handy makes to workers on its hourly rates, fines and fees, and the timing of payments are accurate. Eligible workers will be notified of the amount they will receive.