[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