New York Attorney General Letitia James and the Federal Trade Commission (FTC) have reached a $2.95 million settlement with Angi Services, the operator of Handy Technologies. The agreement addresses allegations that Handy misled workers about their hourly wages. An investigation by the Office of the Attorney General (OAG) and FTC revealed that Handy's advertisements in New York exaggerated potential earnings for workers on its platform.
According to the findings, Handy's ads suggested higher wages than what was actually paid. In some instances, workers received nearly 50 percent less than advertised rates. Additionally, ads claimed that payments would be made daily, but workers typically waited almost a week unless they paid a fee.
Attorney General James stated, "New York workers deserve to be paid what they are promised, when they are promised." She emphasized the importance of holding companies accountable for misleading practices.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, noted that "Handy Technologies relied on inflated and false earnings claims to lure workers onto its platform."
Handy's platform allows workers to take on household service jobs like cleaning and lawn care. However, their advertisements often overstated potential earnings. For example, in 2021 an ad claimed Lawn Care Pros could earn "up to $53/hr," yet only a small percentage achieved this rate.
The company's payment practices were also scrutinized. Ads claimed immediate payment upon job completion, but actual payments took up to seven days unless a $1.99 fee was paid. Only "tenured" workers who had completed previous jobs were eligible for daily pay.
Furthermore, Handy imposed fines on workers in situations beyond their control without adequately disclosing protocols to avoid these penalties. Workers faced fines if customers failed to provide access or canceled appointments without notice.
The consent order mandates Handy to pay $2.95 million and ensure accurate advertising regarding wages and fees. Affected workers will be informed about compensation amounts.
This case was managed by Senior Enforcement Counsel Jordan Adler and Deputy Bureau Chief Clark Russell from the Bureau of Internet and Technology under Bureau Chief Kim Berger's supervision.