The Federal Trade Commission (FTC) and the New York attorney general have taken action against Handy Technologies, now operating as Angi Services, for allegedly deceiving workers about their earnings and failing to disclose fees and fines. The authorities are seeking a $2.95 million settlement and significant changes to the company’s business practices.
According to a press release issued by the FTC and the New York Attorney General, Handy Technologies enticed workers to join its platform with inflated and false earnings claims. Director of the FTC’s Bureau of Consumer Protection, Samuel Levine, stated that the company then deducted undisclosed fines and fees from workers’ wages, further misleading them.
The complaint filed by the FTC and the New York Attorney General alleges that Handy Technologies advertised specific payment amounts for gig jobs on its platform, promising immediate payment upon completion. However, most workers could not achieve the advertised earnings, were typically paid seven days after completing the work, and were charged an additional fee for expedited payment.
Furthermore, the complaint accuses Handy Technologies of imposing undisclosed fees and fines on workers. In some cases, workers were penalized for circumstances beyond their control, such as when a customer canceled a scheduled job. The company allegedly failed to adequately disclose these charges to its workers.
Handy Technologies has agreed to a proposed settlement, as outlined in the press release. The settlement includes a $2.95 million payment to compensate workers who were misled by the company’s deceptive practices. New York Attorney General Letitia James emphasized the importance of holding companies like Handy accountable for their actions and ensuring that workers are not lured in by false promises.
This case is part of a broader trend of regulatory action by the FTC against companies engaging in deceptive practices. Recent enforcement actions have targeted companies making false claims about products, misrepresenting ratings and reviews, and imposing hidden fees on consumers.
Overall, the FTC and the New York attorney general’s actions against Handy Technologies highlight the importance of transparency and fairness in the gig economy. By holding companies accountable for deceptive practices, regulators aim to protect workers and ensure a level playing field for all participants in the marketplace.
