On Friday, March 11, the Federal Trade Commission (FTC) filed an administrative complaint against HomeAdvisor, Inc., charging it with using deceptive and misleading tactics to sell leads for home improvement projects to small businesses, including small “gig-economy” workers. The action underscores the current administration’s effort to protect workers, especially those engaged in the gig economy through large platforms.

The FTC alleges that since at least 2014, HomeAdvisor—a popular service that matches service providers with consumers seeking home improvements—made false, misleading, and unsubstantiated claims about the quality and source of leads it sells, and about the likelihood that the leads would result in actual jobs. According to the complaint:

• HomeAdvisor told service providers that the conversion rates at which leads actually resulted in home improvement jobs were higher than what HomeAdvisor’s own data indicated.
• HomeAdvisor represented that the leads it sells reflect consumers who intend to hire a service provider soon, when in reality many consumers do not.
• HomeAdvisor represented that its leads came directly from consumers who seek HomeAdvisor’s assistance in selecting a service provider, even though many leads were also purchased from affiliates.
• HomeAdvisor’s sales agents misrepresented the cost of the optional software subscription offered to HomeAdvisor’s network members that helps with scheduling appointments and processing payments. The FTC alleges...

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