Extra! Extra! HomeAdvisor finally got what they had coming with an official charge by the FTC (Federal Trade Commission) of misleading service providers regarding their leads.
And if you’ve been following Roofing Insights or the Directorii at all, you know as well as anyone that HomeAdvisor isn’t a company that we support in any way.
With our suspicions confirmed, we are pleased to know HomeAdvisor will no longer be cheating small businesses out of the leads that are promised through their service. They’ve misled service providers for far too long about both the quality and source of the leads provided to them from the site, and now they’ll pay the price.
What Got HomeAdvisor to This Point?
For the last 6-8 years, we’ve been talking about how HomeAdvisor might be a great “looking” service, but in reality, they’ve just had one lawsuit after another. This time it’s not just another lawsuit. It’s formal charges by the Federal Trade Commission.
In 2017 a platform that had built a better name for itself, Angie’s List, was acquired by HomeAdvisor and the name was changed to Angie. For contractors and consumers, the hope was that changing the name and developing the company would help to make things better, but instead, many of the practices that existed inside HomeAdvisor now existed within Angie.
Federal Trade Commission Charges HomeAdvisor: What Does This Mean for Them?
On March 11, 2022, the FTC released to the press that they’ll be formally charging and prosecuting Home Advisor for misleading contractors and homeowners on their platform. Here’s a short excerpt from that release.
“Gig economy platforms should not use false claims and phony opportunities to prey on workers and small businesses,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Today’s administrative complaint against HomeAdvisor shows that the FTC will use every tool in its toolbox to combat dishonest commercial practices.”
The release goes on to share that the FTC has found HomeAdvisor to misrepresent their services, quality of leads, and customer base to contractors.
After a complaint like this one has been filed through the FTC, a judge will be presented the information and a formal case made against HomeAdvisor.
Roofing Insights’ Take on This Formal Complaint
With the formal complaint and filing from the Federal Trade Commission, we’re excited. We’ve been spreading awareness about HomeAdvisor and their unprofessional service for years. Here are some of our tips so that you can make a difference as well.
1) Homeowners Can Help Rid the Landscape of Companies Like HomeAdvisor
HomeAdvisor has a monopoly on the market, and because of this, they’ve been able to get away with a lot. We can make a change by voting with our wallets and taking our business elsewhere.
But another way you can inspire a difference is by talking to others and spreading awareness about your experience. That’s what we’ve been doing for years, and it’s helped to make a huge difference.
2) The Truth Will Always Come Out
You’ve got to trust that the truth will always come out. Home Advisor has been able to get away with a lot, but eventually, their practices will be exposed even more than they have been currently.
3) Home Advisor Is a Sellout
It’s not hard to believe that a company this big has been trying to reach far with their deep pockets. For years they’ve been doing everything they can to keep the BBB, Consumer Affairs, and other large-scale review businesses on their side.
This has regularly been their way of keeping a good name. Poor reviews and 1-star reviews are hidden, and only the best reviews are shown.
4) How Bad It’s Becoming for Roofers
HomeAdvisor purchased a roofing company several years ago. Total Home Roofing is a national roofing company that’s been providing services and fighting against other roofers for the leads that come into both Home Advisor and Angie.
Now you’re not just fighting against other roofers and home service companies in your area. You’re also fighting for leads from Total Home Roofing and other possible businesses that HomeAdvisor has acquired.
This just doesn’t make sense for any business owner.
5) HomeAdvisor Is Bad for Homeowners and Contractors
Homeowners are promised the world when they use HomeAdvisor, but they’re getting less than what they bargained for. While it’s a great idea to be able to connect homeowners and contractors through a simple platform like this. It’s only going to work if there’s transparency and honesty throughout.
There’s just no guarantee from HomeAdvisor for contractors or homeowners that the leads they’re providing will turn into anything. As a contractor, when they send you a phone number, it could turn into a sale or be fake. There’s really no way to know.
6) Challenges for the Homeowner
There’s no way of knowing who your number and information is going out to. Homeowners are promised that they’ll only get contacted by the best, but in reality, it’s just the businesses that have been able to pay the most for the leads. Convicted felons and those who don’t pass background checks have regularly made it onto the platform.
Worse yet, there’s no way to stop them from calling or contacting you when you’re ready to hire someone for the job. You might still have several dozen contractors calling you and trying to provide an estimate.
This Is Why We Started Directorii
We started Directorii because we want to make a difference in the home service industry. Homeowners and contractors both deserve better than what Home Advisor has to offer and has been offering for years.
Directorii is the product that you’re looking for. We take our contractors through a very thorough process before listing them on our Directorii. And, after they’ve been listed and approved, we stand by them, offering a $40,000 guarantee if they fail you and aren’t able to make it right on their own.
The Customer Is Always Right
When something goes wrong, we’ll make it right. We intend to ensure that you’re 100% satisfied, and if you’re not, then we want to make it right. Whether you’re the contractor or the homeowner, trusting in our process and the people behind the product is of utmost importance to us.
Tell Us Your Story
At Roofing Insights and Directorii, we see ourselves as guardians to this industry. We want to make a difference and change the landscape of the home service industry for good. Homeowners and contractors both need a better solution, and we’re here to provide it.
If you have a story or evidence to share that can help bring light to the deception Home Advisor has been spreading, we’d love to hear it.