[Federal Register Volume 88, Number 24 (Monday, February 6, 2023)]
[Notices]
[Pages 7725-7727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-02383]


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FEDERAL TRADE COMMISSION

[Docket No. 9407]


HomeAdvisor, Inc.; Analysis of Proposed Consent Order to Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement; request for comment.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of Federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis of Proposed Consent Order to Aid 
Public Comment describes both the allegations in the complaint and the 
terms of the consent order--embodied in the consent agreement--that 
would settle these allegations.

DATES: Comments must be received on or before March 8, 2023.

ADDRESSES: Interested parties may file comments online or on paper by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Please write ``HomeAdvisor, 
Inc.; Docket No. 9407'' on your comment and file your comment online at 
https://www.regulations.gov by following the instructions on the web-
based form. If you prefer to file your comment on paper, please mail 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex P), 
Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Sophia Calder[oacute]n (206-220-4486), 
Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Avenue NW, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule Sec.  2.34, 16 CFR 
2.34, notice is hereby given that the above-captioned consent agreement 
containing a consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of 30 days. The following 
Analysis to Aid Public Comment describes the terms of the consent 
agreement and the allegations in the complaint. An electronic copy of 
the full text of the consent agreement package can be obtained at 
https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before March 8, 2023. 
Write ``HomeAdvisor, Inc.; Docket No. 9407'' on your comment. Your 
comment--including your name and your state--will be placed on the 
public record of this proceeding, including, to the extent practicable, 
on the https://www.regulations.gov website.
    Because of heightened security screening, postal mail addressed to 
the Commission will be subject to delay. We strongly encourage you to 
submit your comments online through the https://www.regulations.gov 
website.
    If you prefer to file your comment on paper, write ``HomeAdvisor, 
Inc.; Docket No. 9407'' on your comment and on the envelope, and mail 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex P), 
Washington, DC 20580.
    Because your comment will be placed on the publicly accessible 
website at https://www.regulations.gov, you are solely responsible for 
making sure your comment does not include any sensitive or confidential 
information. In particular, your comment should not include sensitive 
personal information, such as your or anyone else's Social

[[Page 7726]]

Security number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure your comment does not include 
sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule Sec.  
4.10(a)(2), 16 CFR 4.10(a)(2)--including competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule Sec.  4.9(c). In 
particular, the written request for confidential treatment that 
accompanies the comment must include the factual and legal basis for 
the request and must identify the specific portions of the comment to 
be withheld from the public record. See FTC Rule Sec.  4.9(c). Your 
comment will be kept confidential only if the General Counsel grants 
your request in accordance with the law and the public interest. Once 
your comment has been posted on the https://www.regulations.gov 
website--as legally required by FTC Rule Sec.  4.9(b)--we cannot redact 
or remove your comment from that website, unless you submit a 
confidentiality request that meets the requirements for such treatment 
under FTC Rule Sec.  4.9(c), and the General Counsel grants that 
request.
    Visit the FTC website at http://www.ftc.gov to read this document 
and the news release describing the proposed settlement. The FTC Act 
and other laws the Commission administers permit the collection of 
public comments to consider and use in this proceeding, as appropriate. 
The Commission will consider all timely and responsive public comments 
it receives on or before March 8, 2023. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing a consent 
order from HomeAdvisor, Inc. (``HomeAdvisor''). The proposed consent 
order has been placed on the public record for 30 days for receipt of 
comments by interested persons. Comments received during this period 
will become part of the public record. After 30 days, the Commission 
will again review the agreement and the comments received and will 
decide whether it should withdraw from the agreement and take 
appropriate action or make final the agreement's proposed order.
    This matter involves HomeAdvisor's advertising and sale of its 
membership and leads products to home service providers. Count I of the 
complaint alleges HomeAdvisor violated section 5(a) of the FTC Act by 
disseminating advertisements and marketing that misrepresent that 
HomeAdvisor's leads: (1) concern individuals who intend to hire service 
providers soon, (2) will match the types and locations of work selected 
by service providers, and (3) concern individuals who intentionally 
sought out HomeAdvisor's assistance in finding a service provider. 
Count II of the complaint alleges that HomeAdvisor disseminated false 
and unsubstantiated advertisements and marketing concerning the rate at 
which HomeAdvisor's leads convert into paying jobs. Count III of the 
complaint alleges that HomeAdvisor misrepresented that the first month 
of its mHelpDesk add-on subscription was free.
    The proposed consent order includes injunctive relief that 
addresses these alleged violations and contains provisions designed to 
prevent HomeAdvisor from engaging in similar acts and practices in the 
future. The proposed consent order also requires HomeAdvisor to pay up 
to $7,200,000 to the Commission to be used for consumer redress. 
Provision I prohibits HomeAdvisor from making false and/or 
unsubstantiated representations regarding its products. Provision I.A 
prohibits HomeAdvisor from misrepresenting central characteristics of 
its leads, including that the leads concern individuals who intend to 
hire service providers soon, that they concern projects that will match 
service providers' stated task type and location preferences, and that 
they concern individuals who submitted a request concerning home 
services directly to HomeAdvisor. Provision I.A also prohibits 
HomeAdvisor from misrepresenting products as free. Provision I.B 
prohibits HomeAdvisor from making any representation regarding the rate 
at which HomeAdvisor's leads convert into paying jobs unless that 
representation is non-misleading and supported by data or written 
materials in HomeAdvisor's possession when the claim is made.
    Provision II requires HomeAdvisor to pay up to $7,200,000 to the 
Commission for purpose of consumer redress, with an initial payment of 
$4,448,000. Provision III provides for a redress program that would 
administer two redress funds. The first fund would make payments of up 
to $30 to service providers identified as affected by the practices at 
issue in Counts I and II of the complaint. The second fund would make 
payments of up to $59.99 to service providers identified as affected by 
the practices at issue in Count III of the complaint and who submit a 
claim for payment. The Commission or its designee will administer the 
redress programs, with expenses to be paid from the redress funds. 
Provision IV contains language necessary to aid in the enforceability 
by the Commission of any debt accruing pursuant to this proposed order, 
including, but not limited to, in any subsequent bankruptcy litigation. 
Provision V requires HomeAdvisor to provide the Commission with 
customer information necessary to administer the redress program.
    Provisions VI through IX of the proposed order relate to compliance 
reporting and monitoring. Provision VI is an order acknowledgment and 
distribution provision requiring HomeAdvisor to acknowledge the order, 
to provide the order to current and future owners, managers, business 
partners, certain employees, and to obtain an acknowledgement from each 
such person that they received a copy of the order. Provision VII 
requires HomeAdvisor to submit a compliance report ninety days after 
the order is entered, and to promptly notify the Commission of 
corporate changes that may affect compliance obligations. Provision 
VIII requires HomeAdvisor to maintain, and upon request make available, 
certain compliance-related records. Provision IX requires HomeAdvisor 
to provide additional information or compliance reports, as requested. 
Provision X states that the proposed order will remain in effect for 20 
years, with certain exceptions.
    The purpose of this analysis is to aid public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the complaint or proposed order, or to modify in any 
way the proposed order's terms.


[[Page 7727]]


    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2023-02383 Filed 2-3-23; 8:45 am]
BILLING CODE 6750-01-P