WASHINGTON (Legal Newsline) — District of Columbia Attorney General Karl A. Racine announced June 28 that his office has obtained restitution for consumers after a settlement with Handy Technologies.
Handy will also pay $150,000 to the district for the costs and expenses it incurred while pursuing the matter.
Handy had allegedly misled consumers about the safety of the in-home cleaners it hired to clean consumer homes. Many consumers said Handy cleaners stole personal items while cleaning their homes. Racine’s office filed a lawsuit against the company, alleging the company deceived consumers about the background checks it conducted on the cleaners it used on its app.
Despite alleging their cleaners were “fully vetted,” the company purportedly failed to identify individuals with serious criminal histories.
“This is a victory for district consumers and sends the message that all sharing economy companies like Handy must play by the same rules as traditional brick-and-mortar companies, including truthfully representing their products and services,” Racine said. “The district welcomes innovation in emerging economic sectors like app-based services. However, sharing-economy businesses must develop the same good practices that all other businesses follow in order to treat their customers fairly.”