WNY News Now

Attorney General Letitia James and FTC Secure Settlement for Deceptive Practices

(WNY News Now) – NEW YORK – Workers misled by Handy Technologies, a subsidiary of Angi Inc., are set to receive $2.95 million after an investigation revealed deceptive advertising practices. The New York Attorney General’s Office (OAG) and the Federal Trade Commission (FTC) found that Handy falsely inflated hourly wages and misrepresented payment schedules in advertisements aimed at attracting workers for household service jobs.

The investigation uncovered that Handy’s ads frequently overstated hourly rates, with some workers earning nearly 50% less than advertised. Claims of “daily pay” were also misleading, as workers typically waited up to seven days for payment unless they paid a fee. Furthermore, Handy imposed undisclosed fines on workers for customer-related issues, requiring a multi-step protocol to avoid penalties.

“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. “The order announced today 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.

This matter was handled by Senior Enforcement Counsel Jordan Adler and Deputy Bureau Chief Clark Russell of the Bureau of Internet and Technology, under the supervision of Bureau Chief Kim Berger. The Bureau of Internet and Technology is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.