Professional Documents
Culture Documents
CHARLES COSTELLO,
BRUCE FILIPIAK,
JOSH SELDNER,
ANTHONY BAUMANN,
KOURTNEY ERVINE,
HANS HASS,
IVA HAUKENES,
and BRAD and LINDA McHENRY on behalf of
themselves and all others similarly situated,
Plaintiffs,
v.
HOMEADVISOR, INC.,
IAC/INTERACTIVECORP,
ANGI HOMESERVICES, INC.,
CROWDSTEER INC.,
and DOES 1 through 11,
Defendants.
TABLE OF CONTENTS
PARTIES .........................................................................................................................................6
FACTS ...........................................................................................................................................14
B. Use of Purported Monthly Lead Budgets to Deceive and Cheat HSPs .................27
i
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A. IAC Led the Fraud to Achieve Record Growth for HomeAdvisor ........................82
I. Class Action Allegations for The Deceptive Business Practices Claims ..........................91
ii
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California
COUNT I
Violation of the California Unfair Competition Law,
Cal. Bus. & Prof. Code §§ 17200, et seq.
(On Behalf Plaintiff Seldner and the California Class) ...................................................102
COUNT II
False and Misleading Advertising,
Cal. Bus. & Prof. Code §§ 17500, et seq.
(On Behalf Plaintiff Seldner and the California Class) ...................................................105
COUNT III
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Seldner and the California Class) ...............................................107
COUNT IV
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Seldner and the California Class) ...............................................110
COUNT V
Breach Of Implied Contract
(On Behalf of Plaintiff Seldner and the California Class) ...............................................112
COUNT VI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Seldner and the California Class) ...............................................113
Colorado
COUNT VII
Violations of Colorado Consumer Protection Act ("CCPA"),
Colo. Rev. Stat. § 6-1-101, et seq.
(On Behalf of Plaintiffs Brad and Linda McHenry and the Colorado Class) ..................115
COUNT VIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiffs Brad and Linda McHenry and the Colorado Class) ..................120
COUNT IX
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Brad and Linda McHenry and the Colorado Class) ...................122
iii
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COUNT X
Breach Of Implied Contract
(On Behalf of Plaintiffs Brad and Linda McHenry and the Colorado Class) ..................124
COUNT XI
Unjust Enrichment/Restitution
(On Behalf Of Plaintiffs Brad and Linda McHenry and the Colorado Class) .................126
Florida
COUNT XII
Violation of the Florida Deceptive and Unfair Trade Practices Act,
Fla. Stat. §501.201, et seq. (“DUTPA”)
(On Behalf of Plaintiff Ervine and the Florida Class) .....................................................127
COUNT XIII
Fraud/Fraudulent Concealment
On Behalf of Plaintiff Ervine and the Florida Class) ......................................................129
COUNT XIV
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Ervine and the Florida Class) .....................................................131
COUNT XV
Breach Of Implied Contract
(On Behalf of Plaintiff Ervine and the Florida Class) .....................................................133
COUNT XVI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Ervine and the Florida Class) .....................................................135
Idaho
COUNT XVII
Violations of the Idaho Consumer Protection Act,
Idaho Civ. Code, § 480, et seq.
(On Behalf of Plaintiff Haukenes and the Idaho Class) ...................................................136
COUNT XVIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Haukenes and the Idaho Class) ...................................................139
COUNT XIX
Aiding and Abetting Fraud/Fraudulent Concealment
iv
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COUNT XX
Breach Of Implied Contract
(On Behalf of Plaintiff Haukenes and the Idaho Class) ...................................................143
COUNT XXI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Haukenes and the Idaho Class) ...................................................145
Illinois
COUNT XXII
Violations Of The Illinois Uniform Deceptive
Trade Practices Act (“Illinois DTPA”)
815 Ill. Comp. Stat. §§ 510/1, et seq.
(On Behalf of Plaintiff Filipiak and the Illinois Class) ....................................................146
COUNT XXIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Filipiak and the Illinois Class) ....................................................149
COUNT XXIV
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Filipiak and the Illinois Class) ....................................................152
COUNT XXV
Breach Of Implied Contract
(On Behalf of Plaintiff Filipiak and the Illinois Class) ....................................................154
COUNT XXVI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Filipiak and the Illinois Class) ....................................................155
New Jersey
COUNT XXVII
Violations Of The New Jersey Consumer Fraud Act
N.J.S.A. §§ 56:8-1, et seq. (“NJCFA”)
(On Behalf of Plaintiff Costello and the New Jersey Class) ............................................157
COUNT XXVIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Costello and the New Jersey Class) ............................................159
v
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COUNT XXIX
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Costello and the New Jersey Class) ............................................162
COUNT XXX
Breach Of Implied Contract
(On Behalf of Plaintiff Costello and the New Jersey Class) ............................................164
COUNT XXXI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Costello and the New Jersey Class) ............................................165
Ohio
COUNT XXXII
Violations Of The Ohio Deceptive
Trade Practices Act (“Ohio DTPA”)
O.R.C. 4165.01, et seq.
(On Behalf of Plaintiff Baumann and the Ohio Class) ....................................................167
COUNT XXXIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Baumann and the Ohio Class) ....................................................170
COUNT XXXIV
Breach Of Implied Contract
(On Behalf of Plaintiff Baumann and the Ohio Class) ....................................................172
COUNT XXXV
Unjust Enrichment/Restitution
(On Behalf Of Plaintiff Baumann and the Ohio Class) ...................................................174
Lanham Act
COUNT XXXVI
Violation Of The Lanham Act Section 43(a), 15 U.S.C. § 1125(a)(1)(A)
(False Association and Trademark Infringement)
(On Behalf of the Lanham Act Class)..............................................................................175
vi
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COUNT XXXVII
Violation Of The Lanham Act, 15 U.S.C. § 1125(a)(1)(B)
(False Advertising and Trademark Infringement)
(On Behalf of the Lanham Act Class)..............................................................................177
Colorado
COUNT XXXVIII
Violations of Colorado Consumer Protection Act ("CCPA"),
Colo. Rev. Stat. § 6-1-101, et seq.
(On Behalf of the McHenry Plaintiffs and the Colorado Misappropriation Class) .........180
COUNT XXXIX
Common Law Unfair Competition
(On Behalf of the McHenry Plaintiffs and the Colorado Misappropriation Class) ........183
Florida
COUNT XL
Violation of the Florida Deceptive and Unfair Trade Practices Act,
Fla. Stat. §501.201, et seq. (“DUTPA”)
(On Behalf of Plaintiffs Ervine and the Florida Misappropriation Class) .......................184
COUNT XLI
Common Law Unfair Competition
(On Behalf of Plaintiff Ervine and the Florida Misappropriation Class).........................186
Idaho
COUNT XLII
Violations of the Idaho Consumer Protection Act,
Idaho Civ. Code, § 480, et seq.
(On Behalf of Plaintiff Haukenes and the Idaho Misappropriation Class) ......................187
New York
COUNT XLIII
Common Law Unfair Competition
(On Behalf of Plaintiff Hass and the New York Misappropriation Class) ......................190
vii
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Ohio
COUNT XLIV
Violations Of The Ohio Deceptive
Trade Practices Act (“Ohio DTPA”)
O.R.C. 4165.01, et seq.
(On Behalf of Plaintiff Baumann and the Ohio Misappropriation Class) .......................192
COUNT XLV
Common Law Unfair Competition
(On Behalf of Plaintiff Baumann and the Ohio Misappropriation Class) .......................194
viii
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Plaintiffs Charles Costello, Bruce Filipiak, Josh Seldner, Anthony Baumann, Kourtney
Ervine, Hans Hass, Iva Haukenes, and Brad and Linda McHenry (collectively, the “Plaintiffs”),
by and through their counsel, bring this class action on behalf of themselves and a proposed class
of all other similarly situated home service professionals (“HSPs”), against Defendants
(“ANGI”), CrowdSteer Inc. (“CrowdSteer”), and John Does 1-11. Plaintiffs make the following
allegations based upon personal knowledge as to themselves and their own acts, and upon
information and belief as to all other matters, based upon, inter alia, the investigation undertaken
by their counsel; analysis by consultants with expertise in disciplines relevant to this case;
information that Plaintiffs have secured from publicly available data; information provided to
Plaintiffs’ counsel by many hundreds of current and former HSPs who have been part of
and the filings of IAC, ANGI, and Angie’s List, Inc. made with the Securities and Exchange
vehicle for greed and abuse. HomeAdvisor, which was launched in 1998 as ServiceMagic, Inc.
and was acquired by IAC in 2004 and rebranded in 2012 as HomeAdvisor, claims that it is an
online marketplace for matching HSPs with consumers (homeowners) seeking to have home
services performed. Whereas the service is free to homeowners, revenue is generated primarily
from the fees paid by HSPs for memberships and homeowner service requests (“Leads”). On its
1
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face, such a matching service seems innocuous enough, but this business model was devised for
wrongful, unlawful conduct in furtherance of systemically flawed and deficient processes used to
contractors to use for search and selection purposes, HomeAdvisor’s business model turns such
conventional behavior upside down by selling memberships to HSPs plus charging HSPs the
cost of each supposed “qualified” homeowner Lead. From HomeAdvisor and IAC’s perspective,
limitless, as it is predicated on the Lead pipeline that can be filled with bogus Leads.
sales force, using false promises of success and misrepresentations of membership conditions,
can fulfill the demand by aggressively selling HSP memberships and adding HSPs to the
HomeAdvisor network, it is the supply-side, the homeowner Leads, that HomeAdvisor has less
ability to control. HomeAdvisor, unable to resist the motive of greed, vigorously supplements
the Lead pipeline with information acquired through a spider web of entities whose primary
1
In 1995, Angie’s List founded what is known as the home services marketplace, an
unbiased platform for consumers to research the quality of products or services provided by a
variety of companies, most of which were contractors and home improvement companies. See
https://www.softwareplatform.net/2016/03/07/angies-list-and-two-sided-market-pricing/ (last
visited 4/26/18); https://www.fieldpulse.com/academy/angies-list-home-advisor-thumbtack-yelp-
service-contractors/ (last visited 4/26/18). From 1995 to mid-2016, Angie’s List employed a
consumer driven business model where homeowners looking for a contractor would pay a
membership fee to access a directory of local contractors and reviews from other homeowners.
After searching Angie’s List’s directory and reviews, homeowners could then select and
communicate with their chosen contractor.
2
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leads and infiltrates all aspects of HomeAdvisor’s business and interactions with HSPs.
dollars for membership fees, Leads, and add-on services spawned from a
material facts about the service to prospective HSPs to sell the memberships
and secure the HSP’s credit-card information to begin the flow of bogus
Lead spend budgets. Such sales culture does not end once the HSP becomes a
member. HomeAdvisor call centers are also sites where there was frequent
use and sale of illicit drugs, and alcohol consumption by staff members during
3
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involves: charging HSPs for products and services they do not affirmatively
seek and agree to receive and, misrepresenting (i) the benefits of membership,
(ii) the quality of the Leads, (iii) fees to be charged, (iv) the ease and ability to
monitor and adjust budgets, and (v) HSPs’ inconsequential recourse with
HomeAdvisor’s services and the Leads become apparent to HSPs, their calls
complaining HSPs and further are restrained by corporate fiat to the amount
in order to shamelessly generate and pilfer Leads for its current network of
HSPs’ profile pages, without knowledge that the HSPs are no longer
4
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December 31, 2017, HomeAdvisor had revenues of over $763 million generated off of the backs
Angie’s List, combining it with HomeAdvisor to form ANGI2, a public company (collectively
controlled by IAC (87% and 98% of the economic and voting interest, respectively, as of April
6. Defendants’ wrongful, unlawful conduct as alleged herein consists of: selling and
charging HSPs memberships through concealment, fraud and misstatements about the true nature
of HomeAdvisor’s service; charging HSPs for bogus Leads; charging HSPs for unauthorized
mHelpDesk fees; and unlawful and unconscionable dealings with HSPs throughout and
over 880 HSPs who have contacted Plaintiffs’ Counsel and whose experiences with
HomeAdvisor are reflected in Appendix I, attached hereto. Defendants’ unlawful conduct has
caused substantial monetary damages and irreparable, ongoing harm, to HSPs. Such conduct
(a) unlawful, unfair and fraudulent business acts and practices, and unfair, deceptive,
untrue and misleading advertising, by HomeAdvisor and ANGI in violation of the
following state laws: California Unfair Competition Law3 (Count I); California False
and Misleading Advertising (Count II); Colorado Consumer Protection Act (Count
VII); Florida Deceptive and Unfair Trade Practices Act (Count XII); Idaho Consumer
Protection Act (Count XVII); Illinois Uniform Deceptive Trade Practices Act (Count
XXII); New Jersey Consumer Fraud Act (Count XXVII); and Ohio Deceptive Trade
2
As discussed below in ¶¶ 19, 218-226, ANGI and HomeAdvisor are effectively a singular
entity and do not operate as separate corporations. As such, any act or conduct asserted with
respect to HomeAdvisor should be deemed to apply equally to ANGI.
3
IAC is also named as a Defendant for violations of the California Unfair Competition
Law (Count I); California False and Misleading Advertising (Count II) and Florida Deceptive
and Unfair Trade Practices Act (Count XII).
5
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(b) fraud and fraudulent concealment (Counts III, VIII, XIII, XVIII, XXIII, XXVIII, and
XXXIII) as against HomeAdvisor and ANGI;
(c) claims for aiding and abetting fraud and fraudulent concealment (Counts IV, IX, XIV,
XIX, XXIV, and XXIX) as against IAC;
(d) claims for unjust enrichment and restitution by the HSPs (Counts VI, XI, XVI, XXI,
XXVI, XXXI, and XXXV) as against HomeAdvisor, IAC, ANGI; and
(e) breaches of implied contract between HSPs and HomeAdvisor (Counts V, X, XV,
XX, XXV, XXX, and XXXIV) as against HomeAdvisor and ANGI.
the “Lanham Act Defendants”) deceptive conduct in diverting business from HSPs, which
conduct bestows significant financial benefits upon the Lanham Act Defendants, constitutes false
association, false advertising, and unfair competition in violation of The Lanham Act, Section
1125(a)(1)(A) (Count XXXVI), and Section 1125(a)(1)(B) (Count XXXVII); unfair competition
in violation of the following state laws: Colorado Consumer Protection Act (Count XXXVIII);
Colorado Unfair Competition law (Count XXXIX); Florida Deceptive and Unfair Trade
Practices Act (Count XL); Florida Unfair Competition law (Count XLI); Idaho Consumer
Protection Act (Count XLII); New York Unfair Competition law (Count XLIII); Ohio Deceptive
and Unfair Trade Practices Act (Count XLIV); Ohio Unfair Competition law (Count XLV)
PARTIES
The Plaintiffs
Construction, LLC which specializes in roof repairs and replacements and home remodeling.
6
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Plaintiff Costello’s principal place of business is located at 116 N. Dorset Ave., Ventnor City,
New Jersey. Plaintiff Costello paid for a HomeAdvisor Pro ConnectTM membership on or about
October 13, 2016 and was charged over $15,314 by HomeAdvisor for the membership and
Leads. In agreeing to pay for a membership and each Lead, Plaintiff Costello relied on
HomeAdvisor’s representations concerning its vetted and quality Lead service. HomeAdvisor
concealed the true nature of the membership programs, including the quality of the service and
Leads, and absent such concealment Plaintiff Costello would not have purchased a membership
or agreed to pay for Leads. As a result of the conduct described herein, Plaintiff Costello was
injured.
Construction Services IL, LLC which specializes in renovation projects for kitchens, bathrooms
and basements. Plaintiff Filipiak’s principal place of business is located at 701 Dorchester Dr.,
Bolingbrook, Illinois. Plaintiff Filipiak paid for a HomeAdvisor Pro ConnectTM membership on
or about January 4, 2017, and was thereafter charged by HomeAdvisor for approximately 28
Leads. In total, Plaintiff Filipiak has been charged nearly $2,700 for HomeAdvisor’s Pro
ConnectTM membership and Leads. In agreeing to pay for a membership and each Lead, Plaintiff
Filipiak relied on HomeAdvisor’s representations concerning its vetted and quality Lead service.
HomeAdvisor concealed that the Leads were illusory, and absent such concealment Plaintiff
Filipiak would not have agreed to subscribe to an annual membership or pay for Leads. Plaintiff
general handyman services. Plaintiff Seldner operates his small side business, referred to by
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HomeAdvisor as, “All Weather Handyman 365,” from his residence in Sacramento, California.
After fielding relentless solicitations from HomeAdvisor for eight months, Plaintiff Seldner paid
$287.99 for a HomeAdvisor Pro ConnectTM membership on August 16, 2017, and was thereafter
around November 27, 2017. Between August 16 and October 5, 2017, Plaintiff Seldner was
charged $245.32 for approximately 26 Leads. In response to Plaintiff Seldner disputing the
charges with his credit card company, HomeAdvisor attempted to re-process four charges
totaling $529.39 on October 31, 2017, all of which failed. As a result, HomeAdvisor applied
$80.00 in “interest”, $20 for each failed transaction for an outstanding balance of $609.39, before
sending Plaintiff Seldner to collections for a total amounting to $812.52. In agreeing to pay for a
receive advertising and marketing services, and that he was not signed up to receive any Lead
services. Had HomeAdvisor disclosed that Plaintiff Seldner was enrolled in Lead services, for
which he would be charged for each Lead, Plaintiff Seldner would not have purchased a
membership. As a result of the conduct described herein, Plaintiff Seldner was injured.
11. Plaintiff Anthony Baumann (“Baumann”) is the owner and operator of 1st Choice
Roofing Cincy which specializes in roofing, siding, gutters, and insulation work. Plaintiff
Baumann’s principal place of business is located at 6926 Tyler Court, Mason, Ohio. Plaintiff
Baumann became a HomeAdvisor Pro ConnectTM member in April 2014. Between April 23,
2014 and March 18, 2018 HomeAdvisor charged Plaintiff Baumann $11,743.42 for 222 leads.
Plaintiff Baumann relied on HomeAdvisor’s representations that the leads were verified, targeted
and a cost-effective way to connect with new customers. After conducting an internet search of
8
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his company in March 2017, Plaintiff Baumann discovered that another website,
Roofpricer.com, was running fraudulent advertisements using his company name to divert
otherwise legitimate traffic from his website for HomeAdvisor’s benefit. Upon submitting the
requested information on Roofpricer.com, Plaintiff Baumann was contacted by five other local
HSPs that had received his contact information in the form of a Lead sold by HomeAdvisor.
HomeAdvisor concealed the true nature of the membership programs, including the quality of
the service and Leads, and absent such concealment Plaintiff Baumann would not have agreed to
join HomeAdvisor’s network of HSPs or pay for Leads. As a result of the conduct described
12. Plaintiff Kourtney Ervine (“Ervine”) is an owner and operator of Glass Act
Window Cleaning which specializes in window cleaning and pressure washing services.
Plaintiff Ervine’s principal place of business is located at 612 Prosperity Farms Road, North
Palm Beach, Florida. In total, Plaintiff Ervine has been charged over $1,500 for HomeAdvisor’s
Pro ConnectTM membership and Leads from August 24, 2016 through approximately August 25,
2017. Notwithstanding that Plaintiff Ervine cancelled her membership on or about August 25,
2017, HomeAdvisor continues to maintain her company’s Online Public Profile in order to
improperly divert homeowners who are interested in contacting and potentially conducting
business with Glass Act Window Cleaning to HomeAdvisor. In agreeing to pay for a
concerning the quality of its Lead service. HomeAdvisor concealed that the Leads were illusory,
and absent such concealment Plaintiff Ervine would not have agreed to subscribe to an annual
membership or pay for Leads. As a result of the conduct described herein, Plaintiff Ervine was
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injured.
13. Plaintiff Hans Hass (“Hass”) is the owner and operator of Alpine Metal Roofing
which specializes in metal roofing, and also installs shingle and rubber, residential and
commercial roofing. Plaintiff Hass’ principal place of business is located at 164 River Street,
Sidney, New York. Plaintiff Hass paid for a HomeAdvisor Pro ConnectTM membership on or
about August 24, 2015. Before terminating his membership with HomeAdvisor in December
2016, Plaintiff Hass uncovered that another website, Roofing.zone, was running fraudulent
advertisements using his company name, and was diverting otherwise legitimate traffic and
inquiries from his website for HomeAdvisor’s benefit. Upon submitting the requested
information on Roofing.zone, Plaintiff Hass was contacted by other local HSPs that had received
his contact information in the form of a Lead sold by HomeAdvisor. Plaintiff Hass complained
to HomeAdvisor about the deceptive and fraudulent conduct which persisted even after canceling
his membership. As a result of the conduct described herein, Plaintiff Hass was injured.
LLC (“Bergen Certified”) which specializes in home inspections light commercial surveys.
Plaintiff Haukenes’ principal place of business is located in Post Falls, Idaho. Plaintiff Haukenes
paid for a HomeAdvisor Pro ConnectTM membership on or about February 18, 2017, and was
HomeAdvisor’s representations concerning its vetted and quality Lead service. HomeAdvisor
concealed that the Leads were illusory, and absent such concealment Plaintiff Haukenes would
not have agreed to subscribe to an annual membership or pay for Leads. As a result of the
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15. Plaintiffs Brad and Linda McHenry (“McHenry’s” or “McHenry Plaintiffs”) are
the owners of B&B Carpentry which specializes in residential and commercial remodeling. The
McHenry Plaintiffs’ principal place of business is located at 11005 Dover St., Unit 300,
Westminster, Colorado. The McHenry Plaintiffs paid for HomeAdvisor Pro ConnectTM
memberships on or about March 31, 2016 and on or about June 26, 2017 and were charged over
$1,300 by HomeAdvisor for the memberships and Leads. In agreeing to pay for a membership
and each Lead, the McHenry Plaintiffs relied on HomeAdvisor’s representations concerning its
vetted and quality Lead service. HomeAdvisor concealed that the Leads were illusory, and
absent such concealment, the McHenry Plaintiffs would not have agreed to subscribe to the
annual memberships or pay for Leads. As a result of the conduct described herein, the McHenry
16. Plaintiffs Baumann, Ervine, Hass, Haukenes, and the McHenry Plaintiffs are also
The Defendants
the laws of the State of Delaware with its principal place of business located at 14023 Denver
18. Defendant IAC is a corporation organized and in existence under the laws of the
State of Delaware with its principal place of business located at 555 West 18th Street, New York,
New York. IAC is a media and Internet company that owns more than 20 operating businesses
comprising over 150 brands and products - which included HomeAdvisor until September 29,
2017 when IAC contributed HomeAdvisor to ANGI - and some other recognized brands, such as
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Vimeo, About.com, and the Match Group’s online dating portfolio, which includes Match,
OkCupid, and Tinder. IAC has been at all relevant times the parent company and/or majority
shareholder of HomeAdvisor.
19. Defendant ANGI is a corporation organized and in existence under the laws of the
State of Delaware with its principal place of business located at 14023 Denver West Parkway,
Building 64, Golden, Colorado. ANGI was founded and launched in April 2017 as Halo TopCo,
Inc., a wholly owned subsidiary of IAC, to serve as the holding company for HomeAdvisor and
Angie’s List. On September 29, 2017, IAC contributed HomeAdvisor to ANGI, a publicly held
company.
20. Defendant CrowdSteer is a company registered in the Cayman Islands with its
registered office located at Anderson Square Building, Shedden Road George Town, Grand
Cayman KY1-1103, Cayman Islands. CrowdSteer is the owner of the website domain
Roofpricer.com.
21. Defendant John DOE 1 is the owner of the website domain roofingzone.com.
22. The true names and capacities of the Defendants sued herein as DOES 2 through
11, inclusive, are currently unknown to Plaintiffs, who therefore sue such Defendants by such
fictitious names. Each of the Defendants designated herein as a DOE is legally responsible in
some manner for the unlawful acts referred to herein related to creating, acquiring or transmitting
bogus Leads; and/or misappropriating HSPs names or likenesses to generate Leads for
HomeAdvisor. Plaintiffs will seek to add to this Complaint the actual names, capacities and
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following HomeAdvisor former employees, who are treated herein as Confidential Witnesses.
approximately three years, before leaving HomeAdvisor in November 2012. Prior to departing,
Former Employee A held the position of a customer service manager for a year and a half at
representative in Colorado Springs, Colorado for approximately ten months before departing
in Colorado Springs, Colorado for approximately eight months before leaving HomeAdvisor in
March 2017.
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and held the position of a Sales Manager in Colorado Springs, Colorado before voluntarily
31. This Court has jurisdiction pursuant to the Class Action Fairness Act of 2005, 28
U.S.C. § 1332(d)(2), because this is a proposed class action in which: (i) there are 100 or more
members of the Class; (ii) there is an amount in controversy that exceeds the sum or value of
$5,000,000, exclusive of interest and costs; (iii) the members of the Class are citizens of states
different from Defendants; and, (iv) greater than two-thirds of the Class Members reside in states
32. This Court has personal jurisdiction over HomeAdvisor, IAC, and ANGI because
they are authorized to do business and are conducting business throughout the United States,
including Colorado, and HomeAdvisor’s and ANGI’s principal executive offices are located in
Golden, Colorado.
33. This Court has personal jurisdiction over CrowdSteer because it is conducting
business that relates directly to this action in the United States, including Colorado.
substantial part of the events giving rise to the claims occurred in this District, Defendants are
authorized to conduct business in this District, and Defendants regularly conduct and transact
business in this District and are therefore subject to personal jurisdiction in this District.
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FACTS
35. HomeAdvisor flipped the transparent, fixed-cost membership model, like Angie’s
List, on its head by operating a “two-sided home services marketplace[], where both consumers
and high-quality service professionals come to be matched to one another.” IAC Q4 2014
IACI/5933712474x0x806723/9E17250F-94E5-42CD-900B-70D1400CDDE7/Managements_
homeowner of any financial obligation for using the service and placing HomeAdvisor in the
role as the conduit between the homeowner and HSP, the quality and veracity of the Leads
36. HomeAdvisor automatically charges HSPs from roughly $10 to $140 per Lead,
depending on the type of service requested and the location of the request. It is therefore critical
that the Leads are, as HomeAdvisor represents, from serious, project-ready homeowners; that the
information reflected in the Lead is accurate; that the Leads are targeted to the services
performed by the HSP and within the HSP’s geographic reach; and that the Leads are sent to a
37. However, HomeAdvisor conceals the true nature and genesis of its Leads and,
during all relevant times, has misrepresented that Leads are generated and vetted through its
patented ProFinderTM and ProLeadsTM systems that are purportedly designed to weed out the
casual internet browser from serious, qualified and project-ready homeowners, thereby assuring
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the quality of the Leads sold to the HSPs. Specifically, throughout the class period HomeAdvisor
a. “Get in front of ready-to-hire homeowners seeking your skills and expertise.” See
http://welcome.homeadvisor.com/membership#Membership (last visited 1/28/18)
(emphasis added);
c. You’ll be charged only for qualified leads matching your exact specifications, so
you set the budget and the pace. Id. (emphasis added);
e. HSPs will receive “highly targeted prospects”, and have the ability to monitor
and precisely budget their “spend targets and spend ceilings” on Leads. See
HomeAdvisorPro website, “How it works,” at https://pro.homeadvisor.com/how-
it-works/ (last visited 4/26/18) (emphasis added);
g. homeowners are instantly matched with “up to four local Home Service
Professionals who have been background-checked and are qualified and available
to do to the job.” http://www.abouthomeadvisor.com/iac-relaunches-
servicemagic-as-homeadvisor-the-next-generation-of-online-solutions-for-home-
improvement-and-repair-projects/ (last visited 4/26/18);
h. “[W]ith HomeAdvisor’s patented pro finder technology you are only matching
to serious homeowners in your area. HomeAdvisor then instantly connects you
over the phone, via email…..” HomeAdvisor video
https://youtube.com/watch?v=bOxwhpnxU5g (last viewed 4/26/18);
i. The “Benefits of Joining” are “You won’t have to waste your time with
customers who just window-shop” and it “allows you to spend your time with the
right “ready-to-buy” customers”: https://pro.homeadvisor.com/help/faqs/ (last
visited 4/26/18) (emphasis added);
j. And “[w]hile you’re on the job, HomeAdvisor is finding qualified customers for
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you” and you “pay a nominal fee for each lead you match to.” Id.
k. “Connect with the Targeted Prospects You Need to Succeed. Tell us what you do
and where, and we deliver prospects that meet your exact needs.”
https://pro.homeadvisor.com/ (last visited 4/26/18) (emphasis added);
m. “Q. How does HomeAdvisor work? A. First we find homeowners looking for
help completing home projects and collect information about their project. Our
patented ProFinder technology then identifies relevant professionals, taking into
account our pros’ availability, service type and locations preferences. When we
have a match, we send the homeowner's information to the matched pro instantly
so that he/she can win the job.” Id.; and
n. “There are several ways [homeowners] can find Service Professionals from
HomeAdvisor. Profinder, our service where [homeowners] request a referral for a
specific task, and we refer [homeowners] to up to four Service Professionals.”
http://www.homeadvisor.com/servlet/TermsServlet (last visited 4/26/18).
38. IAC and ANGI made similar representations in press releases and SEC filings
(a) “Each year more than six million project-ready homeowners visit
HomeAdvisor.com …” http://iac.com/media-room/press-releases/homeadvisor-
launches-exclusive-category-sponsorship-program (last visited 4/26/18)
(emphasis added); and
(b) “HomeAdvisor agrees to pay these third parties a fixed fee when visitors from
their websites click through to HomeAdvisor website and submit a valid service
request through HomeAdvisor platform, or when visitors submit a valid service
request on the affiliate website and the affiliate transmits the service request to
HomeAdvisor…” https://www.sec.gov/Archives/edgar/data/
1705110/000170511017000004/angi-2017309x10q.htm (last visited 4/26/18) and,
https://www.sec.gov/Archives/edgar/data/891103/000089110317000003/iac-
20161231x10k.htm (last visited 4/26/18)(same).
39. The “Leads”, however, are bogus for several reasons. The Leads originate from
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sources that are neither reliable nor capable of generating the kinds of Leads that HomeAdvisor
markets and sells. HomeAdvisor generates and charges Plaintiffs and HSPs for Leads that are
not verified nor are they from targeted, serious, qualified and/or project-ready homeowners.
Instead, the HSPs receive and pay far more than “a nominal fee” for Leads that are essentially
worthless.
A. The Leads That Are Sold to HSPs Are Overwhelmingly Bogus Because The
Lead Sources are Incapable of Generating Project Ready, Targeted Leads
40. The Leads charged to HSPs are the product of HomeAdvisor’s systemically
flawed system and process, and are of no value because they are often comprised of:
e. persons who claim they did not submit a service request and/or are not
substance of the Leads, and contrary to HomeAdvisor’s representations about the Leads (¶37,
supra), Plaintiffs and the members of the State Classes (defined below) were and continue to be
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charged for Leads that do not constitute targeted, serious or qualified Leads, and are not Leads
from project-ready homeowners. The Leads sold to the HSPs were generated through processes
that flatly contradict HomeAdvisor’s representations as to the characteristics and nature of the
Leads.
42. HomeAdvisor, ANGI and IAC utilize various persons and businesses to
43. HomeAdvisor represents that the qualified, targeted Leads are generated through
the HomeAdvisor website, whereby homeowners interested in connecting with a HSP select the
requested service and then complete a project inquiry form. According to HomeAdvisor, upon
completion of the form, the homeowner is instantly matched with “up to four local HSPs in
HomeAdvisor’s network who have been background-checked and are qualified and available to
7/3/18).
44. This same process is described and depicted in the webinar provided by
experiencewww.youtube.com (last visited 7/11/16), and which webinar is also available via
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45. The commentary that accompanies the forgoing depiction of the Lead vetting
working in Sales and Operations), who informs HSPs that the Leads are generated through a
process whereby the homeowners “Complete a four page questionnaire prior to being matched
with one of our Service Professionals. The information we’re going to request of those
homeowners includes geographic information, details unique to the job, the job status as well as
the time frame for completion and all homeowner contact information.” Id.
46. Mitch Anderson also states that a “vast majority of [HomeAdvisor’s] homeowners
and consumers come to [HomeAdvisor] through homeadvisor.com. We also have the exclusive
partnerships with the websites [ ] such as Better Homes and Gardens and This Old House…”
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7/11/16).
flawed in that it does not and cannot generate Leads of targeted, serious, qualified and project-
ready homeowners. Instead, HomeAdvisor employs various methods that result in Plaintiffs and
HSPs receiving and paying for a vast majority of Leads that are at best “cold calls” and more
likely illusory.
generating and acquiring Leads which includes, but is not limited to, an Affiliate Program; an
industry-leading partner program [that] offers aggressive payouts for qualified leads or calls,”
businesses that connect “”advertisers” like HomeAdvisor with “publishers” ”like bloggers and
other businesses. Publishers then promote HomeAdvisor on their websites and generate leads
that are then sent to HomeAdvisor in exchange for a payment to the “publisher.”
infra, is another marketing extension that HomeAdvisor uses to run listings for HSPs “on some
of the most recognized sites in the home improvement industry, including ThisOldHouse.com, 1-
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51. HomeAdvisor also utilizes Lead generation companies, including One Planet
Ops, Inc. (“One Planet”) f/k/a Reply.com, and HomeImprovement.net to acquire locally-targeted
consumer home improvement leads. Lead generators, such as One Planet, also buy and re-sell
leads from other Lead generators, such as The Lead House, LLC, which generates leads which
are then ultimately sold to buyers, like HomeAdvisor, through an auction-based system.
52. HomeAdvisor does not utilize a CAPTCHA or similar first line of defense to
“distinguish human from machine input, typically as a way of thwarting spam and automated
computers are able to pass it, used as a security measure and usually involving a visual-
lawsuit, filed in federal court in Ohio, captioned Johansen v. HomeAdvisor, Inc., et al. Case No.
2:16-cv-00121 (S.D. Ohio). According to the Declaration of Matt Zurcher, the Senior Vice
leads from One Planet and HomeAdvisor “does not control, and has no right to control, the
manner in which One Planet generates or obtains” consumer Leads and that “HomeAdvisor has
no input and does not work with One Planet regarding how One Planet procures or receives”
Leads which are generated, inter alia, (i) through the websites of One Planet’s operating
companies, and (ii) by purchasing lead data from other third parties, referred to as “publishers”,
including entities such as Lead House, LLC. Zurcher Decl. at ¶¶7, 10.
54. Former Employee A, one of only two HomeAdvisor customer service managers,
from 2010 to 2012, and whose credentials permitted him to view the Lead sources of each Lead
means possible; HomeAdvisor “knew their affiliates were doing shady things” to generate
Leads; and, by approximately July 2011, HomeAdvisor was acquiring more Leads from third-
Publishers’ Clearing House (“PCH”) “disastrous” because a large percentage of Lead credit
requests were attributable to Leads associated with PCH. The creation of a Lead associated with
a sweepstakes entry is deficient and not a reliable source for the creation of legitimate,
order to amass large quantities of Leads that are generated absent any meaningful oversight or
without the implementation of even the most simplistic quality control mechanisms. Such
careless and calculated conduct does not result in the generation of legitimate and viable Leads
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57. HomeAdvisor utilizes its Project Advisor Team (“PA Team”) to generate
hundreds of thousands of Leads per month. According to Former Employee F, the PA Team was
created for the purpose of generating Leads. Following the initial distribution and sale of a Lead,
the PA Team tries to contact the Leads with the goal to generate additional Leads by either
matching the same service request to a new batch of HSPs and/or creating new Leads for other
that her team would call homeowners looking for contractors with the goal to “up-sell them on
additional services” which produced unqualified Leads. The former employee described the
process as follows:
59. Just like the issues experienced by the HSPs that received and paid for
HomeAdvisor’s deficient Leads, the PA Team encountered, first-hand, difficulties contacting the
Leads. Former Employee F confirmed that a vast majority of outreach attempts to the Leads are
futile. The Leads are plagued by disconnected phone numbers, wrong or fake numbers, phone
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numbers that rang incessantly, and email addresses that bounce back as undeliverable. When
Former Employee F was able to successfully reach the “Lead”, he was often told that the person
did not request the service; that the person was not familiar with HomeAdvisor; or the person
60. In the instances that Former Employee F was able to successfully reach a Lead
and to create a new Lead, the Lead was matched using one of three options: (1) Market Match,
(2) Exact Match, or (3) Instant Booking. Although a maximum of four HSPs are to be selected
for a Market Match and only one for the premium Exact Match, Former Employee F states that
PA Team members were motivated by sales goals to routinely override the simplistic Lead
distribution restrictions. Also, according to Former Employee F, the PA Team had the ability to
access the calendars of participating HSPs to book appointments through Instant Booking, the
most expensive Lead-type, absent any request from the purported homeowner.
deceptive practices to generate Leads from duplicating and recycling Leads, to repurposing
purchased consumer information, all in an effort to increase revenue from Lead fees.
62. Former Employee F claims that duplicate Leads were prevalent. According to
Former Employee F, he routinely saw the exact same Lead coming through the system from
different affiliate channels, but the system would not flag the Lead as a duplicate; therefore, each
record of the same Lead was treated as a unique Lead that was then sent to four or more HSPs.
63. Former Employee E stated that he learned that Leads supplied to his HSPs were
also being distributed through other Lead generation sites, such as http://homeimprovement.net/.
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And that he believed HomeAdvisor was replicating or accepting replicated Leads because there
were duplicates of the exact same Leads – including the same grammar, punctuation, and even
grammatical errors, and the only variations were the name or service location.
64. Former Employee B recalls that her sales manager informed her that
HomeAdvisor was buying contact information supplied by attendees at home shows and
65. Former Employee E routinely received calls from dissatisfied HSPs who said the
66. HomeAdvisor’s former and current employees have also spoken out on online
forums about the systemically bogus Leads. As a post by an author identified as a former
HomeAdvisor sales employee confirms: “I personally believe they have a program running in
the back ground [sic] to send contractors fake leads. I was working with a contractor in
California and I personally looked into EVERY lead HA sent him. 7 out of 10 were completely
fabricated and I personally could not find the so called lead in internet searches (like google &
https://web.archive.org/web/20161025191438/http://www.complaintslist.com/2016/homeadvisor
67. The foregoing unfair, deceptive and fraudulent conduct in characterizing and
generating the Leads constitutes fraud and fraudulent concealment (Counts III, VIII, XIII, XVIII,
XXIII, XXVIII, and XXXIII ), supports claims for unjust enrichment and restitution by the HSPs
(Counts VI, XI, XVI, XXI, XXVI, XXXI, and XXXV), breaches the implied contract between
HSPs and HomeAdvisor (Counts V, X, XV, XX, XXV, XXX, and XXXIV), and constitutes
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unlawful, unfair and fraudulent business acts and practices, and unfair, deceptive, untrue and
misleading advertising, by HomeAdvisor in violation of the state laws (Counts I, II, VII, XII,
68. HomeAdvisor misrepresents HSPs’ ability to control the volume of Leads they
will receive. For example, HomeAdvisor told HSPs they could “modify spend targets any time,”
thereby giving HSPs “full control of [the] budget” through the user-friendly system. See
69. Because HomeAdvisor automatically charges HSPs’ credit cards and deducts
funds from their checking accounts, the ability of HSPs to set monthly spend caps and establish
the HSPs that they can control the amount of Leads they receive and set budgets, including by
70. In reality, HomeAdvisor routinely ignores and surpasses HSPs’ monthly Lead
budgets.
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71. HomeAdvisor’s former employees confirm that this was accomplished by using
several tactics. One tactic entails the use of HomeAdvisor’s two categories of “Targeted Leads”,
b. Exact Match: “Get your name out there on the most searched internet sites
and business directories. We do more to promote your business online than
anyone. And, you’ll only pay for leads when a consumer views your business
profile and then decides they want to connect with you.”
(emphasis added). HomeAdvisor represents that these two Lead categories are generated
differently, resulting in a premium Lead fee for the so-called Exact Match Leads.
72. Each of HomeAdvisor’s Targeted Leads categories have their own separate
budgets, yet HomeAdvisor trains its sales representatives to establish only one monthly spend
ceiling to the less expensive Market Match Leads, resulting in HSPs having no budget for Exact
Match Leads. This pattern and practice demonstrates Defendants’ deception to charge HSPs
hundreds or thousands of dollars above the HSPs’ anticipated maximum monthly Leads budget.
73. Also, if by chance an HSP questions the application of a budget to both Lead
categories, Former Employee C said that sales representatives would impose “required”
minimum budgets on the HSP (e.g. setting monthly minimum budgets to $400 for Market Match
74. Additionally, HomeAdvisor conceals that if an HSP freezes their Leads at any
time during the course of the month, the monthly Leads budget resets, thereby allowing
HomeAdvisor to impose the maximum monthly Leads budget during each interval that the Lead
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service is interrupted.
75. Rather, HomeAdvisor represents to HSPs that they “have full control over the
type and volume of business opportunities” received from HomeAdvisor, but HomeAdvisor
omits to mention that turning the “leads off” impact HSPs’ Lead budgets.
76. Plaintiff Filipiak. On or about January 5, 2017, during a live orientation session
Filipiak’s monthly Lead Budget was set at $1,000 per month. Plaintiff Filipiak immediately
informed the HomeAdvisor representative that he did not want a monthly budget that was higher
than $300-$500. The HomeAdvisor representative assured Plaintiff Filipiak that the $1,000
monthly budget was a placeholder and Plaintiff Filipiak could adjust his desired monthly budget
whenever he wanted. At no point did the HomeAdvisor representative inform Plaintiff Filipiak
that every time the Lead budget is adjusted, the monthly Lead budget resets. Despite Plaintiff
Filipiak having lowered his monthly Lead budget on two separate occasions during the month of
January, HomeAdvisor charged him for 28 Leads at a cost of over $2,400 for January.
77. HomeAdvisor automatically charges HSPs’ credit cards and deducts funds from
their checking accounts for Leads. The HSPs’ ability to know the magnitude of the charges is
therefore material. However, information about the Lead fees is concealed from the HSPs and
HSPs are misled about Lead fees, which can range from under $10 to more than $140 per Lead.
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78. While the amount that HomeAdvisor charges per Lead is purportedly determined
by the service requested and location, HomeAdvisor does not publish nor distribute any Lead fee
range in Lead fees to avoid losing potential sales. Former Employee C said that HomeAdvisor
told sales representatives to falsely state to HSPs that no Lead fee schedules were available.
HomeAdvisor trained its sales representatives to instead offer a Lead fee range or, better yet, an
average Lead fee, if pressed, when, according to Former Employee B, they had access to Lead
fee schedules.
representative about Lead fees surpassing the $14 to $18 range she relied upon when joining
HomeAdvisor, the representative stated that Plaintiff Ervine must have heard wrong because
HomeAdvisor would never tell a HSP the rates it charges for Leads.
81. As a result of HomeAdvisor’s refusal to provide HSPs with accurate and material
Lead fee information, the cost of each Lead is concealed until the charge for the Lead is
automatically applied.
82. Each of the named Plaintiffs was a victim of HomeAdvisor’s deceitful practices
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employed to generate unqualified and unverified Leads that were charged to Plaintiffs and HSPs.
83. After two years of being harassed by pushy and forceful HomeAdvisor sales
representatives and being bombarded by HomeAdvisor advertisements sent to his personal email,
Plaintiff Filipiak signed up for a HomeAdvisor membership in January 2017. Within hours,
HomeAdvisor inundated Plaintiff Filipiak with Leads; after the first week, he received 13 Leads
ranging in price from $18.16 to $141.96, for a total cost of over $890. Despite Plaintiff Filipiak
having lowered his monthly Lead budget in January on two separate occasions until it reached
$0, HomeAdvisor charged him for 28 Leads at a cost of over $2,400 in January, irregardless of
84. Only two Leads sent to Plaintiff Filipiak resulted in a job, and the remaining
Leads consisted of: a mortgage broker looking for contractors to attend a class on renovation
loans; people who did not own a house; unanswered phone numbers; phone numbers that cut-off
without the opportunity to leave messages; and persons stating that they were not interested in
the requested service, notwithstanding that he was told there was a unfulfilled need for HSPs in
Plaintiff Filipiak’s service area. Even for the four “instant booking” Leads, which were
supposedly from homeowners who scheduled a direct appointment with Plaintiff Filipiak
through HomeAdvisor’s website, two never answered the door or phone calls and the other two
Leads stated they were not the homeowner indicated on the Lead form and they were not looking
for the services offered by Plaintiff Filipiak. After less than a month with HomeAdvisor, on or
about February 5, 2017, Plaintiff Filipiak called HomeAdvisor to cancel his membership and
request a refund of his membership fee. HomeAdvisor refused to refund his membership fee and
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85. On or about August 16, 2017, after eight months of persistent solicitation from
HomeAdvisor, Plaintiff Seldner agreed to join HomeAdvisor’s HSP network. Plaintiff Seldner
agreed to pay $287.99 for the membership in exchange for, what he thought was strictly,
advertising and marketing for his small, side-job, handyman business. Over the course of the
eight months that HomeAdvisor aggressively pursued Plaintiff Seldner, he reiterated how he was
only interested in advertising and that Leads were not practical for his business. HomeAdvisor
sales representative confirmed that Leads were an add-on service and that Plaintiff Seldner was
under no obligation to receive Leads; however, a Leads budget was a required field in the
happenstance he decided to use the service, so the representative told Plaintiff Seldner that it was
set to $100.
86. Within the month, Plaintiff Seldner received approximately 22 Leads, and was
charged over $440. Plaintiff Seldner contacted HomeAdvisor to complain and to demand a
refund. The representative said she would credit the account (notably, only $109.95 was issued
in Lead credits) and freeze the Leads, which unbeknownst to Plaintiff Seldner automatically
turned on within two weeks. When the Leads reactivated he received four more Leads within
two days and incurred additional charges of nearly $85. Plaintiff Seldner called HomeAdvisor
sales representative to complain, but after several calls went unanswered, he finally spoke to a
HomeAdvisor manager and requested a refund for the Leads and that the Leads be turned off.
The manager said that HomeAdvisor does not refund money, and advised Plaintiff Seldner to
cancel to service completely if he was not interested in receiving Leads. Plaintiff Seldner
responded that since he paid for the annual membership he was entitled to receive the promised
advertising and marketing, but that he did not want to receive Leads, to which the manager
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87. On or about April 23, 2014, Plaintiff Baumann paid a quarterly membership fee
to join HomeAdvisor Pro network on the representations that he was to receive targeted Leads,
and that the service would be a “reliable and cost-effective way to connect with new customers.”
From April 23, 2014 through March 2, 2018, Plaintiff Baumann received over 220 Leads ranging
in cost from $9.18 to $145.45 each which totaled nearly $11,745. Plaintiff Baumann
experienced issues with the Leads shortly after joining HomeAdvisor, but by after the first year
Plaintiff Baumann noticed a drastic decrease in Lead quality. Plaintiff Baumann encountered
systemic issues concerning the validity of the Leads including, inter alia:
c. Individuals stating that they did not submit a request or were not interest in
having the service performed;
88. Dissatisfied with the quality of the Leads and difficulty in obtaining credit for
deficient Leads, Plaintiff Baumann began freezing the Lead service. Plaintiff Baumann was
reluctant to cancel his HomeAdvisor account because he relied upon the online profile that he
worked to build on HomeAdvisor’s directory for marketing and referral purposes. However,
Plaintiff Baumann grew tired of constantly monitoring his HomeAdvisor account and freezing
his Leads since he could not permanently deactivate the Lead service. As a result, every so
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often, the Leads would turn on before Plaintiff Baumann had an opportunity to freeze them again
resulting in the issuance of and being charged for more bogus Leads. Eventually Plaintiff
him for outstanding charges in the amount of $227.90 and has threatened to send him to
collections.
89. When Plaintiff Ervine agreed to become a HomeAdvisor HSP in August 2016,
the Leads charged to her were to be only from homeowners who were ready to hire, to be
provided to only one or two HSPs, and cost between $14 and $18 for residential Leads and $18
and $20 for commercial Leads. Within the first month, she was charged over $325 for
approximately 15 Leads, all of which were residential leads with the charges ranging from $14 to
approximately $30 per Lead. Plaintiff Ervine immediately encountered problems with the Leads,
which consisted of unanswered phone numbers, persons stating that the requested service had
already been completed, Leads outside of her geographical area, and even Leads with fictitious
contact information. Plaintiff Ervine was also informed by homeowners on several occasions
that she was not the first or second HomeAdvisor HSP to contact them, and in one case was at
90. Further, despite having frozen her Leads, in December 2016 Plaintiff Ervine
received a Lead for a job that had already been completed, and from March to July 2017,
HomeAdvisor continued to send and charged her for four more Leads totaling over $110.
Ultimately, Plaintiff Ervine sought out and received credits for these Leads.
continued to send Plaintiff Ervine coercive and misleading text messages purporting to be
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“Leads.” The six text messages were a ruse designed by HomeAdvisor to try to fraudulently
induce Plaintiff Ervine to reactivate her HomeAdvisor membership: First, none of the text
messages came from phone numbers within Plaintiff Ervine’s geographic region (originating
from California, Minnesota, Oklahoma, Tennessee, Texas and Wisconsin); Second, the text
messages instructed Plaintiff Ervine to reply by email, not phone, to the purported homeowners’
spouse; and Third, on their face, the text messages have no indicia of credibility as a “Lead”, as
HomeAdvisor HSP on or about March 31, 2016, and paid $287.99 for a HomeAdvisor Pro
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would be charged for qualified and verified Leads and HomeAdvisor would provide a refund for
any bad Leads. Immediately, HomeAdvisor bombarded the McHenry Plaintiffs with Leads, and
within three days of signing up, the McHenry Plaintiffs’ $700 monthly Lead budget was met.
The Leads charged to the McHenry Plaintiffs were not quality, project-ready Leads; instead they
consisted of unanswered phone numbers, persons that missed appointments, Leads outside of the
McHenry Plaintiffs’ geographical area or scope of service, Leads with fictitious contact
information, and Leads that were over distributed. Less than one week after signing up with
HomeAdvisor, Plaintiff Linda McHenry froze the Lead service and continued to freeze the Leads
93. After the McHenry Plaintiffs terminated their membership, HomeAdvisor began
through emails claiming that HomeAdvisor, in response to feedback from HSPs, implemented
new features including: Improved Customer Service, Easier Credit Requests, More Targeted
harassed the McHenry Plaintiffs with relentless phone calls. On or about June 26, 2017, Plaintiff
Brad McHenry spoke with a HomeAdvisor sales representative and explained that he was
reluctant to rejoin HomeAdvisor because, based on his prior experience, HomeAdvisor was
operating a fraudulent business model of selling to multiple contractors bogus Leads that were
not from project-ready homeowners. The sales representative acknowledged that this is the main
complaint that HomeAdvisor receives from other HSPs, but promised that HomeAdvisor had
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recognized the problems with the Leads, improved the quality of the Leads and would be more
95. Based on these representations, Plaintiff Brad McHenry agreed to resign-up for a
HomeAdvisor Membership and was charged $347.98. Nevertheless, the Leads subsequently
sold to the McHenry Plaintiffs quickly demonstrated that nothing had changed with
HomeAdvisor’s business model or Leads. Plaintiff Brad McHenry paid over $440 for the
subsequent Leads, but those Leads suffered from the same deficiencies that the McHenry
Plaintiffs experienced during their previous HomeAdvisor membership. As a result, less than
one-month after re-signing up for HomeAdvisor, the McHenry Plaintiffs cancelled their
membership again.
96. Immediately after Plaintiff Haukenes launched her home inspection business
website, HomeAdvisor bombarded her with email and phone call solicitations, including emails
stating that HomeAdvisor would provide “Targeted Leads focused on the types of jobs you want,
in the locations you request.” On February 18, 2017, Plaintiff Haukenes spoke to a
HomeAdvisor sales representative who stated that the Leads would come from real people,
would only be for the services that Plaintiff Haukenes’ provides (which was important since
Plaintiff Haukenes specified she was a home inspector and did not offer roof repair), and the
Leads would only be from the exact geographical areas Plaintiff Haukenes specified, because
HomeAdvisor sales representative initially offered Leads that were several hours away.
97. Based upon these representations, Plaintiff Haukenes paid $287.99 for a
HomeAdvisor Pro ConnectTM membership, and was charged a total of $73.32 for four Leads
between March 8, 2017 and March 12, 2107 (she was charged between $14 and $22 per Lead).
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Plaintiff Haukenes immediately encountered problems with the Leads, which contained non-
existent addresses, fictitious phone numbers, Leads for roof repairs, and Leads outside her
geographic service area (one was from Las Vegas, NV, located more than 1,100 miles from her
about October 7, 2016, about HomeAdvisor’s Membership Programs and the nature and quality
of the Leads, HomeAdvisor sales representative told Plaintiff Costello that HomeAdvisor did not
use any third parties to generate its Leads, that the Leads were vetted and verified, and that the
Leads were real homeowners looking for roof replacements. HomeAdvisor sales representative
assured Plaintiff Costello that if a Lead was not from a real homeowner seeking a roof
replacement, HomeAdvisor would credit any bogus Lead. In addition, Plaintiff Costello was
advised that there were 74 Leads in his area looking for roofing contractors. Based upon these
representations, Plaintiff Costello paid $287.99 for a HomeAdvisor Pro ConnectTM membership.
99. Despite setting his Lead budget at $1,000 a month, four days after signing up with
HomeAdvisor, Plaintiff Costello had not received a single Lead. When Plaintiff Costello
followed up with HomeAdvisor customer care about the lack of Leads he was informed, in direct
contradiction to the representation during the sales call that there were 74 Leads ready and
waiting, that the lack of Leads was due to a seasonal slow-down. The HomeAdvisor customer
care representative suggested that Plaintiff Costello increase his Lead budget to $10,000 a month
to ensure a steady flow of Leads during the seasonal slump. Once Plaintiff Costello increased
his Lead budget to $10,000 and began receiving Leads, it immediately became apparent that the
Leads were not the vetted homeowners that the HomeAdvisor sales representative had promised.
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Plaintiff Costello received Leads that consisted of unanswered phone numbers; people that were
not the homeowners; requests for services that Plaintiff Costello does not perform; and Leads
with fictitious contact information. Specifically, Plaintiff Costello received Leads that consisted
of:
d. homeowners that informed HomeAdvisor that they never filled out a request
for service and no longer wanted to be harassed by calls from HomeAdvisor
HSPs;
e. Scammers that sent text messages containing profanity and sexual statements;
and
f. A Lead with an inactive phone number, a fake address and symbols in the
comment section.
100. The foregoing conduct illustrates HomeAdvisor’s willful, deceptive conduct that
it systemically and pervasively sold Leads that fell far short of the quality represented by
HomeAdvisor. The foregoing misconduct and Plaintiffs’ experiences have been corroborated by
over 880 former and current HSPs who have communicated with Plaintiffs’ Counsel to convey
their similar experiences with HomeAdvisor. Appendix I contains the HSPs’ first-hand accounts,
“I signed up for HomeAdvisor lead generation program, only to find out that I
was being scammed. Leads that led me to nowhere, leads that led me to (literally)
a vacant lot, leads that had no one to talk to, leads that were clearly from someone
who was paid to fill out false and unexisting requests, leads that led me to no one
answering the phone, because there's no one there to answer and etc.
HomeAdvisor is a company that must stop the way they conduct their business,
making the lives of entrepreneurs even more difficult to survive” Appendix I at
Entry No. 206.
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101. The wrongful, unlawful conduct of acquiring, selling and charging HSPs for
memberships and Leads through concealment, fraud and misstatements about the true defective
and bogus nature of HomeAdvisor business and charging HSPs for bogus Leads constitutes
unlawful, unfair and fraudulent business acts and practices, and unfair, deceptive, untrue and
misleading advertising, in violation of the state laws (Counts I, II, VII, XII, XVII, XXII, XXVII,
and XXXII), constitutes fraud and fraudulent concealment (Counts III, VIII, XIII, XVIII, XXIII,
XXVIII, and XXXIII), supports claims for unjust enrichment and restitution by the HSPs
(Counts VI, XI, XVI, XXI, XXVI, XXXI, and XXXV), and breaches the implied contract
between HSPs and HomeAdvisor (Counts V, X, XV, XX, XXV, XXX, and XXXIV).
102. Defendants HomeAdvisor, IAC, and ANGI churn HSPs, because, in their view,
there is an unending supply of unknowing and uninformed HSPs.4 At each step of the process,
Defendants act willfully and with an intent to deceive. The fraud is perpetuated on home service
providers and contractors who do not have the monetary resources and time to seek refunds,
A. The Sales and Account Management Processes Are Fraudulent and Deceitful
103. HomeAdvisor’s unlawful and unconscionable conduct begins with the solicitation
4
IAC acknowledged in a May 1, 2017 presentation titled “HomeAdvisor + Angie’s List:
Accelerating Category Leadership,” that HomeAdvisor has only penetrated 3% of the HSP
market. According to this presentation, roughly 90% of HSPs secure jobs offline.
https://www.sec.gov/Archives/edgar/data/1491778/000110465917028923/a17-12195_5425.htm
(last visited 7/5/18). During IAC’s Q3 2017 Earnings Call, ANGI’s CEO, Chris Terrill,
acknowledged that HomeAdvisor was trying to capture more small HSPs when he declared that
HomeAdvisor was accelerating the growth of its sales force in an effort to pursue the untapped
HSPs.
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process, commonly through cold calling by HomeAdvisor’s salesforce. The salesforce uses
search engine marketing, trade associations and affiliate marketing channels to identify potential
Service Professionals, including, inter alia, local plumbers, painters, electricians, handymen, and
104. HomeAdvisor acquires contact information for prospective HSPs through three
sources: (1) independent identification (e.g., phonebook, internet searches, etc.); (2) “phone-in”
inquiries from interested Service Professionals, referred to internally as “Hot Leads” according
10-person teams every couple of weeks. During the two-week training sessions, HomeAdvisor
briefly educates new sales representatives about HomeAdvisor’s product, but primarily focuses
106. Former Employee E said that other sales representatives could be overheard
“blatantly lying to Service Professionals” just to make the sale. Similarly, Former Employee B
claimed that “the more crooked you are internally, the more they [management] will turn their
107. During the telephonic sales call, sales representatives routinely recited and
guaranteed the following selling points, as confirmed by former HSPs and Former Employees B,
D and E:
• All of the Leads come from individuals who have completed a 3-page
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• There is no contract and that the service can be cancelled at any time;
• The HSP will speak to the homeowner or decision maker of the residence and not
a renter;
• The Leads will meet the HSP’s profile criteria, and if not, Lead credits would be
issued; and
• The HSP will have full control over the lead flow and ability to monitor costs.
108. HSPs do not execute any written contract or written agreement with
HomeAdvisor. Nor are HSPs required to click on an “I agree” box after being presented with
any terms and conditions. In fact, HomeAdvisor provides no terms and conditions prior to an
109. Once HomeAdvisor secures a payment source (credit card or debit account
number) from the HSP, the Membership Program fee is charged or debited, and the barrage of
110. Further, by many accounts of Former Employees and HSPs (see e.g., Appendix I
at Entry Nos 220, 300, 348, 392, 411, 611 and 697 and Appendix II), HomeAdvisor employs and
encourages aggressive, deceptive and fraudulent sales practices to exponentially grow the
number of paying HSPs within its network and generate revenue from Lead fees.
reputations via the posting of baseless, bad reviews if they refuse to join HomeAdvisor.
According to Former Employee B, “it was unbelievable how we would bully the contractors to
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sign them up. I would constantly hear sales reps beating them [prospective Service
Professionals] up over the phone. Sales reps would belittle the contractors and tell them if they
112. This conduct has been further confirmed by HSPs who have contacted Plaintiffs’
a. According to an HSP from Wisconsin said, “We are not a member. Just being
continuously called the cell phone of the owner [ ] as well as the main office
number. We have blocked the number from our office but the calls come in to
block. We've asked to not be contacted. We've asked to be taken off their call
list but to no avail they call. We get emails and when we try to ‘Unsubscribe’
we get routed to their website and aren't able to unsubscribe because the site
states ‘You are not subscribed to any emails at this time.’” Appendix I at 876.
113. The former sales representatives uniformly agreed that absent the fraud, deception
and coercion, they often believed that they could not ethically sell the service to prospective
HSPs. Former Employee D said, “If I told Service Professionals the truth about the service they
would often decline the service.” As a result, Former Employee D was criticized by her sales
manager for allegedly talking prospective HSPs out of the service by overeducating them about
the service and warning them about the potential to overdraw accounts. Former Employee D
was coached to talk less about the service, be more aggressive, and close deals more quickly.
Former Employee B was also coached to talk less about the product and she was instructed never
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to let a prospect off the phone before processing the payment. Former Employee B’s sales
manager would say, “Slam them. Get their credit card and get that payment.”
former employees who have posted on the job site Glassdoor.com, which corroborate and
representatives being “encouraged to stretch the truth” and “taught and expected to bend and
omit the truth. For example, you’re expected to tell every prospect that there are a certain
amount of leads available in their city even though it’s usually not true.” See Appendix II, and
https://www.glassdoor.com/Reviews/Employee-Review-HomeAdvisor-RVW8965054.htm (last
visited 4/26/18).
115. To encourage and perpetuate its fraudulent scheme, HomeAdvisor designed its
employ deceptive sales practices. The commission structure creates an incentive to sign up
116. Sales representatives are encouraged to manipulate HSPs’ Lead criteria in order to
make a sale. For example, in order to sell the Lead generation services to a prospect, the sales
software requires there to be a minimum number of Leads available in the HSP’s selected service
area. According to Former Employee C, if there were not enough Leads that met the HSP’s
criteria, his sales manager would instruct sales representatives to disregard the HSP’s specified
criteria by expanding the target geographic region (e.g., increase the HSP’s desired service area
from a radius of 20 miles to 100 miles) or supplement the HSP’s list of services offered, for jobs
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not performed by the HSP, until the Lead minimum was satisfied.5 According to Former
Employee G, to qualify as a premium sale there needed to be $100 in Leads available. If that
threshold was not met, sales representatives were instructed to expand the service area, to the
HSPs’ Lead services must remain activated for the first 24-hours after purchasing a membership
in order for the sales representative to receive a commission on the membership. A retention
bonus could then be earned by sales representatives for HSPs that kept their Leads activated for
the first month of the membership. Moreover, sales representatives were also eligible for a
residual commission for HSPs who kept the Lead service activated for a majority of the
representative can receive is also directly tied to the monthly spend targets for a HSPs account.
118. If an HSP limited or terminated its membership and Leads, sales representatives
also faced termination. As Former Employee B said, “It’s a horrific environment. We were
treated like expendable pieces of crap.” Another post by an author identified as a then-current
HomeAdvisor sales representative titled “Look elsewhere” and dated January 26, 2015 states:
“If you don’t sell you’re fired. If you DO [sic] and the contractor decides to turn off their leads
before 24 hours, you could get fired. You have to lie to contractors and tell the [sic] what they
want To [sic] hear and not what will actually benefit them.” See
https://www.glassdoor.com/Reviews/HomeAdvisor-Reviews-
5
See “Not worth the trouble, time, or free food.” https://www.glassdoor.com/Reviews/Employee
-Review-HomeAdvisor-RVW15464580.htm (entry dated June 13, 2017) (last visited 4/26/18).
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119. Former Employee C offered this experience as an example of the foregoing: The
day before he left on vacation he received a voicemail from a newly signed up HSP who wished
to terminate her membership. Since her call was within 72 hours of signing up, she was entitled
to be reimbursed the membership fee. However, rather than process this request, lose a sale for
HomeAdvisor, and lose the commission, Former Employee C’s sales manager advised, “[Bleep]
it bro. You’re on vacation. Forget about it, and say you didn’t get the voicemail before you
left.” Her cancellation request was not processed within 72 hours. The below post by a HSP
See http://www.complaintsboard.com/complaints/home-advisor-service-magic-scam-
c639368.html (last visited 4/26/18).
120. A former HomeAdvisor sales employee had the following to say: “Brad Foster
[sic] is the VP of Denver Sales and he encourages an environment to where his managers [ ] will
train the new employees to LIE to contractors just to get a sale…”. See
http://www.complaintslist.com/2016/homeadvisor-statement-from-an-x-ha-sales-employee/ (last
visited 11/30/17).
121. Accounts from HomeAdvisor’s former employees paint a picture of call centers
that are lifted right out of the movie The Wolf of Wall Street (Paramount Pictures (2013)).
Alcohol and drug use on HomeAdvisor sales floors are open and notorious. This environment,
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described below, further cultivated the unethical and deceptive sales techniques that is cultivated
at HomeAdvisor:
a. “If you are not friends with a manager and you do not drink everyday and smoke
marijuana forget it. Lots of illegal drug activity in the parking lot and drugs being
sold on the sales floor. No advancement unless you are buddies with a manager –
meaning you party with them. Managers are not exempt from selling and purchasing
illegal drugs. I have seen my manager buy in the parking lot.” (“Marketing
Consultant”, entry dated December 20, 2015);
d. “3 people were arrested within the month I worked there in the parking lot.”
(“Marketing Consultant”, entry dated August 17, 2016);
e. “Absolutely horrible. Drug problem rampant all over the office, everyone is smoking
pot and getting high selling and distributing drugs and pills.” (“Not worth the trouble,
time or free food”, entry dated June 13, 2017);
f. “Unhealthy drug environment” (“Online Marketing Consultant”, entry dated April 11,
2016);
g. “Drug test would wipe out half of the current sales staff.” (“Inside Sales”, entry dated
May 15, 2016); and
h. “Everyone is on drugs (Seen employees snorting substances and smoking pot in the
parking lot.)” (“A call center that represents a worthless product”, entry dated May 5,
2017).
See https://www.glassdoor.com/Reviews/Employee-Review-HomeAdvisor-RVW8965054.htm
(last visited 4/26/18).
122. This sales culture and these practices were employed with the full knowledge, and
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at the direction, of the individuals tasked with running HomeAdvisor’s sales force.
123. HomeAdvisor has adopted uniform internal procedures to deny and discourage
refunds when HSPs seek reimbursement for membership fees and bogus Leads, and to prevent
124. HomeAdvisor has a strict no cash refund policy for membership fees and for
bogus Leads. See Appendix I at Entry Nos. 23, 84, 113, 184, 246, 532 and 570. As a result, the
only recourse left for HSPs is to request a “Lead credit” for bogus Leads. However, a Lead
credit, even when secured, amounts to no recourse at all because HomeAdvisor is just
“crediting” the HSP by replacing one deficient Lead with another deficient Lead.
125. HomeAdvisor has also erected multiple barriers to deter and prevent HSPs from
seeking and receiving Lead credits. HSP credit requests for bogus Leads are routinely denied.
HomeAdvisor even implemented an ad hoc policy requiring the HSP to submit credit requests
within 24 hours violating HomeAdvisor’s Lead Credit Guidelines which state that, “[c]redits
must be requested by you within 30 days of the date that the charge was incurred.” See
126. Rather, customer service representatives cap HSP credit requests at approximately
15% of the total Leads received, irrespective of the HSP being entitled to receive credit for other
bogus Leads.
HSPs that were more lucrative for HomeAdvisor. According to Employee E, it was known on
the sales floor that the issuance of Lead credits was influenced by the size of the HSP’s account
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with HomeAdvisor. The former sales representative said, “The more the Service Professional
spent with HomeAdvisor, the more likely HomeAdvisor would issue a Lead credit.”
credit requests and issuing appropriately owed credit. For example, when Plaintiff Haukenes
tried to receive credits for fake Leads, HomeAdvisor refused to provide a credit for any of the
Leads. Even when Plaintiff Haukenes informed HomeAdvisor that the city clerk for the town of
Worley, Idaho confirmed that the address in one of the Leads did not exist, HomeAdvisor
refused to credit the Lead and told Plaintiff Haukenes to continue to try and contact the Lead.
Notwithstanding that Plaintiff Haukenes spent hours of lost time (worth approximately $1,500)
to contact the fraudulent Leads and dispute the Lead charges with HomeAdvisor, she was not
issued any refund. On March 14, 2017, Plaintiff Haukenes canceled her HomeAdvisor
membership and instructed her credit card company to reject any charges from HomeAdvisor.
129. Within two weeks of activating his HomeAdvisor membership, one of Plaintiff
Costello’s employees contacted HomeAdvisor customer care to inquire about the process of
requesting Lead credits for homeowner Leads who claimed that they did not submit a request or
were not interested in new roofing. HomeAdvisor customer care fraudulently responded that:
HomeAdvisor does not have the ability to obtain a customer’s [sic] information
without them first entering our site or calling us with an interest in the service you
provide. Unless the information provided by a customer is bogus (wrong name,
phone number or disconnected phone number), we are unable to provide a credit
for the situation.
130. Plaintiff Costello submitted credit requests for all of the bogus Leads he received,
but HomeAdvisor rejected the overwhelming majority of these credit requests. So long as the
telephone number in a Lead matched the individual identified in a Lead, HomeAdvisor would
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reject Plaintiff Costello’s credit requests without following up with the Lead to determine if the
individual actually submitted the Lead or requested roofing work. Despite HomeAdvisor’s
initial denials, Plaintiff Costello continued to pursue the rejected credit requests with
HomeAdvisor. During these conversations, HomeAdvisor stated that the Leads it was selling to
Plaintiff Costello came from a third party affiliate site that produced bad Leads. However,
HomeAdvisor continued to refuse to refund or credit the bogus Leads, asserting – contrary to its
public statements, advertising and its own website – that it doesn’t sell Leads, it sells
information.
131. After less than a month with HomeAdvisor, on or about February 5, 2017,
Plaintiff Filipiak called HomeAdvisor to cancel his membership and request a refund of his
membership fee. HomeAdvisor refused to refund his membership fee and Plaintiff Filipiak froze
132. The experiences of the HSPs who have contacted Plaintiffs’ Counsel also
demonstrate the flagrant systemic abuse of the HSPs with respect to the handling of HSPs’ credit
requests:
a. “I demanded, and was told I'd receive, a credit for each of these leads and closed my
membership. HomeAdvisor did *not* credit my leads….” Appendix I at Entry No.
882,
b. “I had called about a charge for a lead and they were suppose[d] to credit my account
back but after a month still no credit. At that time I cancelled my account with them. I
called back after a month, when the woman said she wasn't authorized to credit my
account I asked to speak to a manager after waiting someone finally answered. I was
told that they could not give me a refund but a credit towards another lead, I said my
account was cancelled and was not renewing it.” Appendix I at Entry No. 510,
c. “Then they've sent us crap leads and keep taking money out of our checking account
for these bogus leads. When we ask for credit they deny the credit. We are struggling
to make a living and this big company is taking advantage of us. When we told them
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that we were dissatisfied with the leads and quality of their practices they told us that
if we wanted out we could get out but we would NOT receive any refund for
anything.” Appendix I at Entry No. 251.
See Appendix I for additional HSP experiences with HomeAdvisor’s refusal to provide
from the same deficient and fraudulent practices as those employed in the handling of credit
requests. After being denied Lead credits that Plaintiffs McHenry and Ervine were rightfully
entitled to receive, Plaintiffs McHenry and Ervine sought to terminate their memberships, but
their requests to cancel were persistently met with resistance from HomeAdvisor.
134. After the McHenry Plaintiffs’ attempts to obtain Lead credits for the bad Leads
However, HomeAdvisor made such efforts exceedingly difficult; when they called to cancel the
membership, HomeAdvisor would place the calls on hold indefinitely and would hang up on the
McHenry Plaintiffs. After numerous phone calls amounting to countless hours that spanned
multiple days, it was not until the McHenry Plaintiffs called HomeAdvisor under the pretense of
opening a new account that they were able to eventually cancel their membership.
HomeAdvisor refused. Instead, HomeAdvisor informed Plaintiff Ervine that she had two months
left on her membership and to call back at the end of the two month period at which time
HomeAdvisor automatically renewed her membership by trying to charge $287.99 to the credit
card on file. When Plaintiff Ervine called HomeAdvisor to cancel the automatically renewed
membership and request a refund, she was told that HomeAdvisor never issues refunds and if she
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wanted to dispute the charge any further, she would have to retain a lawyer. Ultimately,
HomeAdvisor refunded the fraudulent charges after Plaintiff Ervine filed a complaint with the
BBB.
136. In the below excerpt from an intake received by Plaintiffs’ Counsel on July 4,
2018, an Indiana HSP describes HomeAdvisor’s fraudulent and deceptive practices that he
I have been hammered with calls since inquiring about Home Advisor back in 3/2017. In
looking at ways to use various channels to keep workflow coming in and keep crews
busy and productive I finally decided to try it when receiving a call in early June from an
alias phone number which was HA's usual method of calling (most times disguised at [ ]
in Indiana). When signed up it became very clear within a week that this was a HUGE
mistake on my part. The person signing me up was more interested in securing my bank
info than setting me up with the correct services that I provide as an excavating
contractor. I found out the hard way that these fees were coming out of my account if I
hit the I am interested button to just see the details. It took about a week before noticing
the fees were withdrawn from my account for junk leads that didn’t even fall into my
category along with the details a majority of the time that said customer did not provide
any details which I now believe was a setup lead from HA to hit you for more money. I
also would get leads that gave an address where the owner wanted a new driveway and
when looking on Google Earth the house was an older home in the city with a zero-lot
line home with 5' from house wall to property line fences on both sides and the garage
was on the alley with no other access. They supplied many junk leads. On June 25th I
stopped all leads from coming in. However, HA still sent leads via e-mail to tempt you to
open so you would be charged so there was no activity from then up until the present
(7/4/18). On 7/3/2018 after my office manager accessed our bank account balance, we
found that even more charges in the hundreds were levied and drawn out on June 2nd
despite all the credits that were returned to the account from fraudulent leads I received in
the few weeks I was with HA. We called to discuss getting a refund on that money and as
usual they are happy to give us credits for future crap leads. This is the scam. They take
out American currency immediately but offer the worthless free lead credits for later.
Don't buy off on this. They have weekly billing cycles that conveniently do not credit
before they draw your money out. This becomes an ongoing scam. Not getting anywhere
with this "account specialist" (definition is someone that offers no help but frequently
apologizes for the situation) and not being able to work out a solution to receiving a cash
deposit back into our account, I told him to just immediately cancel our account and
further explained to "old deaf ears" what I thought of the company he works for. He said
he would close the account and send an email to that effect. It has been a day and still no
email confirming the cancelation. In the one day since I told them I have received and
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offer for more free leads if I continue. All I can say is "are you kidding me"? They hit me
for just under a thousand dollars in the short time I was there and do feel somewhat dumb
for taking that leap. The service also cost me another two thousand for the remote I threw
at the TV when I saw another Home Advisor commercial. Appendix I at 338.
majority stake in mHelpDesk, a startup, cloud-based field service software for small to mid-size
work orders and invoices, and manage tasks on a smartphone. HomeAdvisor’s Chief Executive
Officer Chris Terrill advised that the software will be made available to HomeAdvisor’s 80,000
stake-in-mHelp Desk-startup.
138. Moreover, IAC affirmatively stated in its Annual Report on Form 10-K for the
Fiscal Year Ended 12/31/2016, that certain HomeAdvisor membership programs are integrated
with mHelpDesk.
139. Until recently, information about mHelpDesk, however, was absent from the
publicly-available information provided online by HomeAdvisor and IAC in connection with the
140. HSPs are not adequately informed during the membership purchasing process that
they will be automatically enrolled in and charged for mHelpDesk following a one-month free
trial.
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received an $80 “kicker” or bonus for signing HSPs up for the service.
142. As a result of the compensation structure, sales representatives would not present
mHelpDesk as an option, and would not inform the HSPs that there was an additional fee for the
service.
143. Therefore, HSPs are left to discover that, in addition to their annual membership
fee and per Lead fee, Defendants automatically charged their credit card or debited their
144. Defendants did not notify or seek prior authorization from HSPs before activating
145. The HSPs that have contacted Plaintiffs’ Counsel have recounted their
experiences with the deceptive practices utilized by HomeAdvisor to bill HSPs for mHelpDesk.
“I wanted to cancel mHelp desk, which I did not want to sign up for and never
used. A refund request was refused. When I asked to hear the recording in which I
supposedly agreed to sign up for mHelp desk I was told that it is an internal quality
thing and they "don't get on the phone". I view this an intentionally layering the
system such that the customer is unable to verify what was said on the phone and
therefore the customer is powerless to argue their case. A refund was refused and
credit for more leads was given after 15 minutes of arguing. I don't want the lead
credit. I want a refund for that charge which I did not agree too because I do not
intend to continue using the unethical lead generation service.”
Appendix I at Entry No. 858. Additional experiences with HomeAdvisor’s fraudulent charging
of MHelpDesk are detailed in Appendix I at Entry Nos. 177, 464, 465,603 and 689.
HSPs and Plaintiffs have suffered substantial and an ascertainable loss of money. Defendants
have operated a scheme designed to bestow significant financial benefits upon themselves to the
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detriment of Plaintiffs and the Classes. Had Defendants not concealed and falsely characterized
the true nature of the membership programs and the Leads, Plaintiffs and the HSPs would not
have paid collectively millions of dollars for the membership programs, Leads and mHelpDesk.
147. HomeAdvisor accomplishes the wrongful and unlawful conduct of selling and
charging HSPs memberships and charging for bogus Leads by relying on the aid of third-parties,
in addition to the Lead sources/generators described above. HomeAdvisor relies on the Better
Business Bureau (“BBB”) and the Debt Collection Agencies to help conceal and further the
fraudulent scheme.
148. Former and current HSPs victimized by HomeAdvisor’s practices have submitted
complaints through the BBB in the last 3 years, including 502 complaints in the preceding 12
See https://www.bbb.org/denver/business-reviews/contractor-referral/homeadvisor-in-lakewood-
co-22000608/reviews-and-complaints (last visited 7/6/18).
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149. Since July 2015, 604 consumers (94%) have reported a negative experience with
HomeAdvisor to the BBB, whereas only 28 customers (4.3%) have reported a positive
experience with HomeAdvisor during that same time period. Below is HomeAdvisor’s BBB
See https://www.bbb.org/denver/business-reviews/contractor-referral/homeadvisor-in-lakewood-
co-22000608/reviews-and-complaints?section=reviews (last visited 7/6/18).
150. Former Employee A, who almost exclusively dealt with complaints that had been
filed with the BBB, confirmed that HomeAdvisor could retain its positive rating as long as it
could show that it affirmatively reached out to complainants in an attempt to resolve the issue(s),
151. Whatever the reasons may be for HomeAdvisor being able to maintain an A-
rating, it has nothing to do with the bona fides of the HSP complaints or the utter failure of
152. Faced with the futility of stopping the bogus Lead charges and inability to
terminate their memberships, HSPs are forced to cancel the credit and debit cards to avoid
incurring additional authorized and erroneous charges. See Appendix I at Entry Nos. 30, 37, 110
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and 141. In response, HSPs are sent by HomeAdvisor to debt collection agencies.
153. HomeAdvisor has associated with at least two debt collection agencies, CMI
Credit Mediators, Inc. (“CMI”) and McCarthy, Burgess & Wolff (“MBW”), (collectively with
any John Doe debt collection agencies the “Debt Collection Agencies”) to collect monies from
154. HomeAdvisor also initiates collection actions against HSPs who have
HomeAdvisor fails to produce evidence sufficient to support the charge and the financial
institution rejects HomeAdvisor charge and credits the HSP’s account. When HSPs win a
chargeback, despite the fact that a financial institution has found the charge to be invalid,
155. Plaintiff Costello filed a dispute related to HomeAdvisor Lead charges with
Discover card. Discover card challenged HomeAdvisor to provide evidence of the validity of the
Leads or a contract that supported its new assertion that it was selling information, not Leads.
After HomeAdvisor failed to provide the requested information, Discover card reversed the
charges on Plaintiff Costello’s card. As a result, on May 6, 2017, HomeAdvisor sent Plaintiff
Costello’s account to CMI to initiate collections. CMI is currently trying to pursue Plaintiff
Costello for a fraudulent debt in the amount of $21,519.60 which consists of $15,453.81 in bogus
Lead charges, $914.52 in interest and a $5,151.27 collection charge for CMI.
156. Similarly, after Plaintiff Seldner incurred additional unauthorized charges for
Leads he did not agree to receive, he contacted his credit card company which issued a
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the four separate charges that were reversed totaling $529.39. All four charges were rejected,
resulting in HomeAdvisor applying $20 “interest” penalties on each charge, for a total
outstanding balance of $609.23. Plaintiff Seldner received an email the same day from
HomeAdvisor titled, “Final Account Notice – Avoid being sent to Collections” that reflected a
balance of $609.39. On November 27, 2017, Plaintiff Seldner received another email from
HomeAdvisor which indicated that his account had been sent to an outside collection agency and
that additional fees and possibly interest would be added to the balance. The following day he
received an email from CMI which stated that Plaintiff Seldner now owed $812.52. In response
to another email received from CMI on January 7, 2018, Plaintiff Seldner filed a complaint with
the Consumer Financial Protection Bureau about CMI. Currently, CMI is pursuing Plaintiff
157. Likewise, when a HSP threatens to file a complaint against HomeAdvisor with a
state Attorney General, HomeAdvisor backs off or instructs the Debt Collection Agency to cease
collection actions and the HSPs complaint is resolved. Together, the Debt Collection Agencies
and HomeAdvisor utilize their moniker or “debt collector” to browbeat HSPs into remaining
with HomeAdvisor.
158. In response to HomeAdvisor’s refusal to credit Plaintiff Haukenes for the bogus
Leads, on March 14, 2017 she canceled her HomeAdvisor membership and instructed her credit
card company to reject any charges from HomeAdvisor. Visa then reversed two charges for
$287.99 and $73.32 on Plaintiff Haukenes credit card. On April 12, 2017, HomeAdvisor
attempted to process the two reversed charges, but both failed, resulting in the assessment of $20
“interest” penalties on both charges. That same day, HomeAdvisor sent Plaintiff Haukenes an
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email titled “Final Account Notice – Avoid being sent to Collections” alleging that she now
owed HomeAdvisor $401.31. The notice threatened that if Plaintiff Haukenes did not pay the
balance that her account would be sent to an outside collection agency, and additional collection
fees and/or litigation fees would be assessed, and a negative report would be made against her
credit. This harassment continued for more than two months until Plaintiff Haukenes responded
to HomeAdvisor’s baseless threats by filing complaints with the Idaho Attorney General. In
response to the complaint filed with the Idaho Attorney General, HomeAdvisor promptly “wiped
159. The sharp increase in the number of HSPs in HomeAdvisor’s network translates
to increased revenue through membership and Leads fees. But, in order for HomeAdvisor to
maximize revenue from Lead fees, the quantity of Leads needs to grow with HomeAdvisor’s
ever-increasing number of HSPs. To do so, Defendants devised schemes that unlawfully co-opt,
use and exploit the identities of current and former HSPs to divert legitimate business away from
the HSPs to HomeAdvisor, including: (i) Online Public Profiles, (ii) HomeAdvisor Premier
Online Directory, (iii) the Exclusive Partner Network, (iv) Exact Match Listings, and (v) Website
Hijacking.
160. In marketing and selling the membership programs, HomeAdvisor promotes the
161. Without informing the HSPs, the Lanham Act Defendants, seize the HSPs’ online
listings that appear on HomeAdvisor’s website, Partner’s Networks and search engines. The
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Lanham Act Defendants employ hijacking websites to intercept and divert business opportunities
away from the intended HSP to HomeAdvisor. The Lanham Act Defendants accomplish this by:
1) manipulating internet traffic to route homeowners away from their preferred HSP and
directing them, to a HomeAdvisor related domain; 2) creating the illusion for the homeowner
that they are contacting their chosen HSP; and 3) making false or misleading representations
HSPs, which begins at the enrollment stage, is the foundational information that the Lanham Act
Defendants utilize in creating and leveraging the repertoire of online listings and impersonation
163. Once a HSP completes the enrollment process with HomeAdvisor and the Online
Public Profile, the profile becomes active and looks nearly uniform to Plaintiff Ervine’s Online
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164. What HomeAdvisor does not disclose to HSPs is when the Online Public Profile
is activated the HSP’s internet presence is seized by HomeAdvisor. From the moment of
activation, numerous HomeAdvisor affiliated websites, using the HSP’s name, will populate the
top search results whenever a homeowner searches for the HSP’s business. As a result, the
organically grown, word of mouth business generated by the HSP without HomeAdvisor’s
165. For example, Plaintiffs’ Counsel received an intake from a HSP from Texas who
reported that after signing up with HomeAdvisor his Google analytics report showed that all
traffic to his website stopped. When the HSP googled the name of its business, the only results
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about this issue, HomeAdvisor sales representative openly acknowledged that if the HSP were to
sign up with HomeAdvisor, the HSP’s organically generated internet business would be
167. When a homeowner visits HomeAdvisor’s website, they are able to view HSP
Online Profile Pages, similar to Plaintiff Ervine’s above. While the HSP’s contact information
reflected on the Online Profile Page is accurate, the “Get a Quote” button does not result in a
direct submission to the desired HSP. The “Get a Quote” button opens a separate and distinct
168. The “Get a Quote” pop-up is deceptive because it does not inform the
homeowner that the information will not be received directly by the desired HSP that the
homeowner selected to communicate with regarding their project, but instead will go directly to
HomeAdvisor converts the contact information associated with the quote request into a Lead and
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169. After evaluating the HSP’s status, if any of the following situations apply,
HomeAdvisor will not direct the homeowner to his or her chosen HSP but instead will distribute
(a) if the HSP does not participate in Lead services (i.e., Basic Membership
Program participants);
170. At no point does HomeAdvisor disclose the fact that it will interfere with HSPs’
web presence. While the homeowner attempting to contact a particular HSP is deceived, so too
is the HSP. HomeAdvisor does not inform the homeowner that their request for a quote from a
specific HSP may be supplied to four or more other HSPs instead of the selected HSP, and
meanwhile the HSPs receiving and being charged for the Lead are under the impression that the
homeowner specifically requested the quote from them. The lack of transparency and behind-
the-scenes games diminishes any potential value derived from the service from the standpoint of
172. Through this directory, homeowners are able to browse the directory of HSPs by
choosing a type of service from the list of 80+ services and entering the applicable zip code.
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173. Upon clicking “Browse Reviews” a list of HSPs matching the search criteria
populates. The list contains the truncated versions of the HSPs’ Online Public Profiles and
commonly includes a “Get a Quote” button. When users click that button either on the search
results page, or on the selected HSP’s Online Public Profile, the user is asked to submit their
contact information.
174. HomeAdvisor misrepresents the nature of the directory to HSPs. For example, in
explained that the Premier Online Directory (f/k/a/ LiveDirectory) gave homeowners the ability
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See https://www.slideshare.net/SurefireSocial/how-to-use-homeadvisor-to-connect-with-
consumers (last visited 4/26/18).
believe they are submitting their information directly to the HSP of their choice.
176. HomeAdvisor takes the homeowner’s submission and turns it into a Lead that
HomeAdvisor then sells to other HSPs, at HomeAdvisor’s sole discretion, irrespective of the
homeowner’s desire to connect with the HSP that they had selected.
marketing extension that will benefit HSPs by exposing their business to more than 12 million
homeowners every month by automatically placing their business listing on top home
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178. What HomeAdvisor does not reveal about the Exclusive Partner Network is that
HomeAdvisor uses the Network to interject itself in the word of mouth market to steal business
179. Once a HSP is listed with the Exclusive Partner Network, internet search engines
will give these Exclusive Partners priority treatment over the HSPs, thereby burying the HSP’s
real website behind a list of HomeAdvisor affiliated domains. As a result, homeowners who
learned of the HSP through word of mouth, reputation or local advertising are likely to click on
one of these HomeAdvisor affiliated websites thinking they are contacting the HSP directly.
HomeAdvisor will then either sell that Lead to the HSP at a substantial charge or, even worse,
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180. The Pro and Pro Plus membership programs include two categories of Leads –
Market Match and Exact Match Leads. HomeAdvisor represents that Exact Match Leads are
generated exclusively through click-throughs to the HSP’s Exact Match listing and online profile
page which appear on HomeAdvisor.com and elsewhere on the Internet, or submission of service
requests via telephone calls to a HSP’s “Exact Match Number,” which is a HomeAdvisor
profile used to promote the HSP’s business online by getting their “name out there on the most
HSPs provide HomeAdvisor the content for the listing (including the business logo, description
and contact information), but HomeAdvisor replaces the HSP’s phone number with a
HomeAdvisor operated Exact Match Number. By doing such, HomeAdvisor intercepts calls
from homeowners in order to generate Exact Match Leads, which are then distributed to the HSP
182. However, prior to distributing the Lead, HomeAdvisor evaluates the HSP’s status
in the HomeAdvisor network. If the HSP has temporarily suspended the Lead services or has
terminated their HomeAdvisor membership, HomeAdvisor will make false and misleading
statements about the HSP’s business, including lack of availability, the business is no longer in
service, or that the HSP does not work in a specific geographic area. HomeAdvisor will then
distribute the Lead to other HSPs in its network, often at the premium Lead fee irrespective of
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184. Furthermore, when HSPs terminate and/or do not renew their membership,
HomeAdvisor does not remove the HSP’s Exact Match listing within a reasonable amount of
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time from its affiliate websites. According to Former Employee A, former HSPs’ listings often
remain active for 300-500 days post termination. During such time, HomeAdvisor continues
fielding proactive phone calls from homeowners seeking to contact the HSP on the listing. Since
that HSP is no longer active, HomeAdvisor distributes and charges other active HSPs for the
2017, HomeAdvisor continued to use Plaintiff Ervine’s public profile in violation of the Lanham
Act and Florida law. HomeAdvisor is utilizing Plaintiff Ervine’s Online Public Profile and
business name to confuse homeowners into thinking that Plaintiff Ervine, through her business,
Glass Act Window Cleaning, is affiliated with HomeAdvisor and will receive the Lead request if
the consumer selects the “Get a Quote” button on HomeAdvisor’s website. In fact, when a
consumer clicks the “Get a Quote” button on Plaintiff Ervine’s Online Public Profile, the below
window appears stating “Request a Quote from Glass Act Window Cleaning” and “Send a
July of 2017, HomeAdvisor continues to use the McHenry Plaintiffs’ business name and
187. Similarly, more than 7 months after canceling her HomeAdvisor membership,
HomeAdvisor continued to maintain Plaintiff Haukenes’ Online Public Profile in order to use
her business name and likeness to direct business away from Plaintiff Haukenes to
HomeAdvisor.
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Online Public Profile with the below Online Public Profile. The revised and currently active6
Online Public Profile reflects the name and mailing address of Plaintiff Haukenes’ home
inspection company, and the identical business description as the one reflected above; however,
the phone number that appears below the mailing address is not and has never been associated
with Bergen Certified Inspection. And the remaining business information that appears under
the headings “Quick Facts” and “Service Area” are either inaccurate or incomplete.
6
Active as of the filing of this Complaint.
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189. Furthermore, the current posting denigrates the public’s perception of Plaintiff
Haukenes’ business by proclaiming, in the form of an “alert” denoted with an exclamation point
and bold red font, that Plaintiff Haukenes’ “business is not a screened and approved member of
HomeAdvisor.”
See, id.
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190. Strategically placed immediately below this “alert” appears a large box soliciting
visitors who are viewing HomeAdvisor’s falsified and unauthorized Online Public Profile for
Plaintiff Haukenes to receive quotes from “3 Prescreened Home Inspection Pros” (emphasis
added). Upon submission of the requested information, a Lead is generated that is then sold to
active HSPs in HomeAdvisor’s network, who are essentially Plaintiff Haukenes’ competition.
HomeAdvisor’s unlawful use of Plaintiff Haukenes’ business, coupled with the insertion of the
“alert” and link to get quotes from Plaintiff Haukenes’ competition is a none too subtle act of
retaliation against the terminated HSP, and attempt to intercept potential business opportunities
and divert them to active HSPs in order to generate more Leads and revenue for HomeAdvisor.
See, id.
E. Website Hijacking
191. The Lanham Act Defendants also use various browser hijacking website domains.
These website domains, such as RoofPricer.com and Roofing.zone, use the company names of
current and former HomeAdvisor HSPs to redirect legitimate internet traffic and searches away
from the HSP’s business to HomeAdvisor’s impersonation websites. This conduct confuses
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consumers and hijacks legitimate traffic and business opportunities away from the HSPs’
businesses.
192. For example, in March 2017, when searching for Plaintiff Baumann’s company,
1st Choice Roofing Cincy, the below search result populated which prominently displayed, “1st
Choice Roofing Deals – Get Best Prices Estimates Fast”. However, the website URL was not
associated with Plaintiff Baumann’s business, but rather RoofPricer.com, a website owned and
operated by CrowdSteer.
193. Upon clicking on such misleading website links, users are directed to websites
that often consist of a single page that reflects the business name of current or former HSPs and
often reflect some special offer, such as: Save up to 40%! This deceptive information is then
followed by a form asking for users to submit their contact information to “see price estimates.”
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195. Upon submitting the requested information, no estimates are displayed and,
possession, the user information is converted into a Lead that is then distributed, under
HomeAdvisor’s sole discretion, to other HSPs who are charged upon receipt of the Lead.
196. This precise scheme was confirmed by Plaintiff Baumann, who, upon submission
of the completed form on the website reflecting his company name, was contacted by five local
HomeAdvisor roofing HSPs who stated they had received Plaintiff Baumann’s contact
HomeAdvisor about the misleading website and to request that the five HSPs who were charged
approximately $80 each be credited for the Lead. HomeAdvisor declined to issue any credits,
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even in this instance, and said that each HSP would have to request the credit themselves.
2016, Plaintiff Hass was reviewing his company’s online presence by Googling “Alpine
Roofing” and “Alpine Roofing Sidney”, among other related search terms. In the populated
search results, below, Alpine Metal Roofing’s website was sandwiched between the top ranking
198. Upon clicking on the top search result, Roofing.zone, users are asked to input
details about the roofing project, and that upon submission of the form users will receive instant
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199. Upon completion of the form, Plaintiff Hass was contacted by other
HomeAdvisor roofing HSPs who had received Plaintiff Hass’ contact information in the form of
a Lead from HomeAdvisor and for which each were charged approximately $70. Immediately
Plaintiff Hass contacted HomeAdvisor online customer support and sent follow up emails
containing screenshots of the website hijacking, but HomeAdvisor failed to take any action
200. In early December 2016 Plaintiff Hass canceled his HomeAdvisor membership
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and requested that the deceptive Google ads be removed. At that time, HomeAdvisor assured
Plaintiff Hass that the issue would be reviewed. Later that month, on December 30, 2016,
Plaintiff Hass received an email from HomeAdvisor informing him that he would begin
receiving Leads as of that day. Before calling HomeAdvisor, Plaintiff Hass Googled his
company and found that the same fraudulent Roofing.zone ad was still active. Upon speaking to
HomeAdvisor’s customer service representative, Plaintiff Hass was told that his account had not
been shut down entirely, but that it would be closed, and that HomeAdvisor would follow up
201. Once again, HomeAdvisor took no steps to rectify Plaintiff Hass’ complaints and
was essentially silent until Plaintiff Hass sent an email on January 12, 2017 in which he
HomeAdvisor issued Plaintiff Hass a credit card refund in the amount of $881.27 on February 1,
2017, but provided no further explanation or clarification concerning the website hijacking.
website hijacking to divert Leads away from HSPs was the subject of prior litigation in an action
captioned Rosati’s Window Co., L.L.C. v. Remodelrepairreplace,com et. al., Case No. 2:15-cv-
02711-JLG-TPK (U.S.D.C. S.D. Ohio) (“Rosati Action”). The Rosati Action alleged that
HomeAdvisor and CrowdSteer violated the Lanham Act and Ohio state law by misappropriating
the name of Rosati’s Window Co., L.L.C. (“Rosati”) and using it on the websites
Rosati to sell to Rosati’s competitors. According to the Rosati Action, the website
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203. As is evidenced by the following statements from HSPs nationwide, HSPs are
again victims of another scheme devised by the Lanham Act Defendants, built on the backs of
HSPs by utilizing the company names and likenesses of both the current and former HSPs, to
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http://paintingbusinesspro.com/homeadvisor-pro-reviews-complaints/ (last
visited on 4/26/18).
See http://www.handymanstartup.com/home-advisor-pro-review-what-you-need-
204. An HSP posted a review on sitejabber.com on July 14, 2017 titled “Illegal
business. Within 5 days I was sent 9 leads. Of the 9 only 2 were legit. 3 were suspect and
refused to credit the account. I disputed all charges with the cc company and canceled the
card to prevent further charges. Now they won’t remove my business from their search
visited on 4/26/18).
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205. The Lanham Act Defendants’ deceptive conduct in diverting business from HSPs
through the unlawful use of (i) Online Public Profiles, (ii) HomeAdvisor Premier Online
Directory, (iii) the Exclusive Partner Network, (iv) Exact Match Listings, and (v) Website
Hijacking, which conduct is wantonly executed with the objective to bestow significant financial
benefits upon the Lanham Act Defendants, constitutes false association, false advertising, and
unfair competition in violation of the Lanham Act, Section 1125(a)(1)(A) (Count XXXVI), and
Section 1125(a)(1)(B) (Count XXXVII); unfair competition in violation of the following state
laws: Colorado Consumer Protection Act (Count XXXVIII); Colorado Unfair Competition law
(Count XXXIX); Florida Deceptive and Unfair Trade Practices Act (Count XL); Florida Unfair
Competition law (Count XLI); Idaho Consumer Protection Act (Count XLII); New York Unfair
Competition law (Count XLIII); Ohio Deceptive and Unfair Trade Practices Act (Count XLIV);
VII. IAC AND ANGI EXERT OPERATIONAL CONTROL OVER, AND PROFIT
FROM, HOMEADVISOR
206. Barry Diller is IAC’s founder and currently its Chairman and Senior Executive.
Mr. Diller touts his “unique business model” for IAC which is to “[b]uy digital businesses, fold
them into a conglomerate and then spin [them] out ….” See, The New York Times, DealBook,
http://www.nytimes.com/2015/11/24/business/dealbook/barry-dillers-business-model-bears-
fruit.html?_r=0 (last visited 4/26/18). Mr. Diller runs IAC as a “sort of ‘central flywheel’ to
create, buy and finance companies to later be spun out.” Since the mid-2000s, IAC has been “a
207. IAC is like a business incubator. It acquires, develops and spins off media and
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internet businesses including Expedia, TripAdvisor, HSN, LendingTree.com and the Match
Group. Irrespective of the competitive “home service-related lead generation” landscape, IAC
market leading position and brand and [HomeAdvisor’s] business model, which complements the
business models of [IAC’s] other businesses.” From the time IAC acquired Service Magic in
2004, through its rebranding of Service Magic as HomeAdvisor in 2012, until the Transaction
(defined below, see ¶218), IAC was the parent company and majority shareholder of
segment and wholly owned subsidiary of IAC in IAC’s SEC filings and press releases, and in the
208. It was IAC’s capital investment during the Class Period that enabled
HomeAdvisor to develop and implement the fraudulent business model. From 2013 to 2016,
IAC made capital contributions to HomeAdvisor of nearly one-quarter billion dollars for
marketing and to increase HomeAdvisor’s salesforce, and IAC reported that, under its direction
and control, HomeAdvisor had been transformed from an unprofitable business to one that IAC
touted as its fastest-growing and most profitable segment. (IAC Q1 2016 Shareholder Letter,
5/4/16 http://files.shareholder.com/downloads/IACI/5508803805x0x889889/8E4DCC2D-13E3-
209. For example, in its Q2 2013 earnings call on July 31, 2013, IAC declared 2013 a
transition year for HomeAdvisor, and highlighted IAC was “working on rolling out some
alternate business models to help make the business stickier with our service professionals.”
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210. With IAC at the helm, IAC reported in subsequent quarters that its actions had,
(a) During the April 30, 2014 Q1 2014 earnings call, IAC was able to report its “first
quarter of double-digit revenue growth since the first quarter of 2012, and its first quarter
of double-digit EBITDA growth since the third quarter of 2012. Additionally…active
[HSPs] grew 15% year-over-year”.7
(b) During the October 29, 2014, Q3 2014 earnings call, IAC, and its CFO Kip
reported that HomeAdvisor’s revenue increased 20% versus the prior year, and that the
number of paying HSPs was up nearly 30% year-on-year in the third quarter.8
(c) During the February 4, 2015, Q4 2014 earnings call, IAC reported that
HomeAdvisor was profitable, with almost $300 million in revenue, and with growth
expected to continue in the 20%-30% range in 2015.9
(d) During the Q3 2015 earnings call on October 27, 2015, Kip highlighted and
confirmed that HomeAdvisor’s growth is tied to the HSPs: “so we just got [sic] crossed
100,000 service professionals last week, which is a huge milestone for us and we crossed
it faster than we thought”; “the engagement and spend from the average service
professional is up significantly year-over-year ……and it is those guys [the HSPs] who
are supplying the revenue and fulfilling the customers and that the SP network is the
biggest driver.”10
211. In IAC’s Q3 2016 shareholder letter, dated November 2, 2016, Mr. Levin hyped
HomeAdvisor’s record quarter: “HomeAdvisor also had another record quarter with domestic
revenue growing 39% and a new record Adjusted EBITDA, up nearly 80% year over
year…[T]he [HSP] network was up nearly 50% year over year again…To put this growth in
perspective, since we offered to acquire Angie’s List in Q3 of last year, we have added a net
7
Source: http://seekingalpha.com/article/2177683-iac-interactive corp-management-
discusses-q1-2014-results-earnings-calltranscript? part= single (last visited 4/26/18).
8
Source: http://seekingalpha.com/article/2611655-iac-interactivecorp-iaci-q3-2014-
results-earnings-call-transcript?part=single (emphasis added) (last visited 4/26/18).
9
Source: https://seekingalpha.com/article/2884126-iac-interactivecorp-iaci-q4-2014-
earnings-call-transcript?part=single (last visited 4/26/18).
10
Source: http://seekingalpha.com/article/3609106-iac-interactivecorp-iaci-ceo-joey-levin-
q3-2015-results-earnings-call-transcript?part=single (emphasis added) (last visited 4/26/18).
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number of service professionals roughly equivalent to the size of Angie’s [List’s] entire
network.”11
212. HomeAdvisor’s record growth continued through the fourth quarter of 2016. In
IAC’s Q4 2016 Shareholder Letter, dated February 1, 2017, IAC’s Joey Levin declared: “Once
again, HomeAdvisor crushed it. Revenue was up 35% and Adjusted EBITDA more than doubled
again from the prior year. For the full year 2016, we accelerated domestic revenue growth and
214. Even after the announcement of the Transaction, IAC continued to push
11
Source:http://files.shareholder.com/downloads/IACI/2419670841x0x915248/8A
989FB7-9FBD-4267-971A-7652B3932415/Q3_2016_Shareholder_Letter.pdf (emphasis added)
(last visited 4/26/18).
12
Source: http://files.shareholder.com/downloads/IACI/5508803805x0x926086/0A31793B
-5A86-48CA-9D49-D0B450F90787/Q4_2016_Shareholder_Letter.pdf (last visited 4/26/18).
13
Source: http://files.shareholder.com/downloads/IACI/5414898856x0x940699/55F46F1C-
B81A-4B9F-8DDE-34F51EB6580D/Q1_2017_Shareholder_Letter.pdf (last visited 4/26/18).
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215. IAC was not a hands-off parent company, rather it has operated HomeAdvisor as
if it were a department within IAC. In fact, IAC has publicly acknowledged that its executives
are intimately involved in operating HomeAdvisor’s business. For example, in April 2016, IAC
announced that its Executive Vice President and Chief Financial Officer, Jeffrey Kip, who had
been in this position since March of 2012, would be succeeded by Glenn Schiffman as CFO, but
would “remain with the Company and oversee the international expansion of HomeAdvisor
business.” (IAC Appoints Glenn H. Schiffman as Chief Financial Officer, PR Newswire, 4/7/16).
IAC’s rationale for transitioning Mr. Kip’s role was that Mr. Kip had been “a key contributor in
HomeAdvisor's success.” Mr. Kip’s LinkedIn profile currently has him listed at the Chief
visited 7/6/18).
216. IAC’s control and influence over HomeAdvisor’s business strategies and
operations are also supported by IAC’s letters to its shareholders. For example, for 2016, IAC
acda-a1ab4f539e7c).
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217. Similarly, for 2017, IAC established the following priorities for HomeAdvisor:
218. On May 1, 2017, IAC announced that it had entered into a transaction with
Angie’s List whereby HomeAdvisor and Angie’s List would become a wholly owned subsidiary
of a new publicly traded company called ANGI Homeservices Inc. (the “Transaction”). Under
the terms of the Transaction, IAC agreed to contribute HomeAdvisor to ANGI in exchange for
shares of Class B shares of common stock of ANGI. Angie’s List agreed to become a wholly
owned subsidiary of ANGI in exchange for each Angie’s List shareholders receiving the right to
elect to receive one share of Class A common stock of ANGI or $8.50 per share in cash. As a
result of the Transaction, IAC would own between approximately 87 % and 90% of the new
company’s equity value and 98% of the total voting power. The Transaction closed on
September 29, 2017. The following diagram depicts the steps of the Transaction and the
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219. The Transaction documents demonstrate that IAC exerted operational control
over HomeAdvisor and its business. Not only is HomeAdvisor not a party to any of the
Transaction documents, but under the conduct of business section of the Agreement and Plan of
Merger dated as of May 1, 2017 (“Merger Agreement”), IAC acknowledged that it directed
HomeAdvisor’s business operations. Specifically, paragraph 5.1 (c) of the Merger Agreement
states:
IAC covenants and agrees that it shall conduct the HomeAdvisor Business in
the ordinary course of business in all material respects, and shall use reasonable
best efforts to preserve intact HomeAdvisor Business’s present lines of business,
maintain its rights, franchises and permits and preserve relationships with
employees, customers and suppliers. (emphasis added).
220. In the Contribution Agreement by and between IAC and ANGI dated as of
September 29, 2017 (“Contribution Agreement”), IAC acknowledged that it had full control of
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HomeAdvisor’s business and asset. Under Section 2.01 of the Contribution Agreement, IAC
agreed to:
222. The closing of the Transaction did not terminate IAC’s involvement in
HomeAdvisor’s business. In addition to owning 98% of ANGI’s voting power and designating
80% of ANGI’s board members, IAC and ANGI entered into a Services Agreement whereby
IAC agreed to continue to perform certain services for ANGI. While the specific services were
not publicly disclosed, Section 3.01 of the Services Agreement acknowledges that, with respect
to the specific services, IAC’s involvement in HomeAdvisor business will not change:
the [IAC Service Providers] shall be required to perform the Services only in a
manner, scope, nature and quality as provided by or within IAC that is similar in
all material respects to the manner in which such Services were performed in the
twelve (12) months immediately prior to the Effective Date
223. In addition, HomeAdvisor employees are still directed, managed and/or employed
interested in joining the “IAC team” have the option to explore the jobs available at IAC’s 20
plus operating businesses. The jobs available through IAC’s operating businesses also include
IAC benefits, such as the “IAC Retirement Plan” and health benefits. IAC is responsible for the
Form 5500 filings for both the retirement savings plan and the health and welfare benefit plan.
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HomeAdvisor does not make any such filings. See http://iac.com/careers/overview(last visited on
4/26/18).
224. Even after the close of the Transaction, IAC continues to treat HomeAdvisor
executives and employees as IAC employees and incentivize them to operate HomeAdvisor and
ANGI in a manner that would inure to IAC’s benefit. In connection with the Transaction
HomeAdvisor executives and employees received IAC denominated equity awards. These IAC
denominated equity awards are options and performance-based restricted stock units that will
vest as shares of IAC common stock and are directly tied to the value of IAC’s stock price,
which directly benefits from the ongoing fraudulent conduct alleged herein. Upon exercise of
these IAC denominated equity awards, ANGI is required to issue additional shares to IAC as
reimbursement. As of December 31, 2017, the equity awards amounted to 1.4 million IAC
225. The rationale behind IAC’s unrelenting pursuit of Angie’s List is apparent -- it
creates another immediate source of HSPs for HomeAdvisor to fill its pipeline to perpetuate the
fraudulent and deceptive practices alleged herein. The combined HSP network will consist of
“HomeAdvisor’s network of more than 156,000 and Angie’s List’s network of more than 55,000,
14
See http://files.shareholder.com/downloads/IACI/4395746033x0x940172/6F7C5443-
697C-40B6-A024-6B8BD657989E/IAC_s_HomeAdvisor_to_Combine_with_Angie_s_
List_050117_FINAL.PDF (last visited 4/26/18).
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226. As a result of the Transaction, ANGI became the entity in charge of operating
HomeAdvisor’s Business. HomeAdvisor’s CEO, Chris Terrill, became the CEO of both ANGI
and HomeAdvisor, both of which are headquartered in the same building. In fact, ANGI’s
website describes HomeAdvisor and Angie’s List as two of ANGI’s ten brands.
227. Furthermore, five key IAC executives comprise the 10-member Board of
Directors of ANGI: Joey Levin as Chairman of the Board, Glenn Schiffman (IAC’s Chief
Financial Officer), Mark Stein (IAC EVP and Chief Strategy Officer), Chris Terrill, and Gregg
Winiarski (EVP, General Counsel and Secretary of IAC), all of whom were nominated to
ANGI’s Board of Directors because of the “unique knowledge and experience regarding ANGI
and its businesses that he has gained through his [roles] with IAC. . .” See
https://www.sec.gov/Archives/edgar/data/1705110/000104746918003353/a2235441zdef14a.htm
228. IAC has always steered HomeAdvisor’s business and continues to do so well after
the close of the Transaction. Joey Levin’s discussion of ANGI in the Q1 2018 Shareholder
Letter to IAC shareholders is written in the voice of management actively operating ANGI and
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not in the voice of the CEO of ANGI’s largest investor. For example, Mr. Levin acknowledges
a. …our big operational focus is still the integration of Angie’s List, which we
e. We have plans to accelerate capacity expansion in the second half of the year.
229. Therefore, IAC’s and ANGI’s control over HomeAdvisor and its business
supports claims for aiding and abetting fraud/fraudulent concealment (Counts IV, IX, XIV, XIX,
XXIV, and XXIX), unjust enrichment and restitution (Counts VI, XI, XVI, XXI, XXVI, XXXI,
and XXXV) and violations of California and Florida state law (Counts I and XII).
230. Plaintiffs reallege and incorporate by reference the allegations set forth in each of
231. Plaintiffs bring this action, both individually and as a class action, on behalf of
themselves and all similarly situated individuals, pursuant to Federal Rule of Civil Procedure 23.
232. For Plaintiffs’ state common law fraud, aiding and abetting fraud, breach of
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implied contract, unjust enrichment and statutory claims under California law (“California
Class”), Colorado law (“Colorado Class”), Florida law (“Florida Class”), Idaho law (“Idaho
Class”), Illinois law (“Illinois Class”), New Jersey law (“New Jersey Class”), and Ohio law
(“Ohio Class”), (collectively the “State Classes”), plaintiffs seek to certify the following State
Classes:
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233. Plaintiffs may seek to certify additional classes and/or subclasses and reserve the
right to modify or amend the definition of the proposed State Classes before the Court
234. Excluded from the State Classes are: Defendants, any entity in which any
Defendant has a controlling interest, and each Defendant’s officers, directors, affiliates, legal
entities; and, any judge or magistrate presiding over this action, as well as their immediate family
members.
235. Defendants’ practices and omissions were applied uniformly to all members of
the State Classes, so that the questions of law and fact are common to all members of the State
Classes.
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236. All members of the State Classes were and are similarly affected by the wrongful
and deceptive practices of Defendants, and the relief sought herein is for the benefit of Plaintiffs
237. All members of the State Classes similarly relied on HomeAdvisor’s deceptive
representations and practices and such reliance resulted in harm to each State Class Member.
that the State Classes consist of many thousands of members, the identities and contact
239. Questions of law and fact common to the Plaintiffs and State Classes exist that
predominate over the questions affecting only individual members of the State Classes. The
(c) Whether HomeAdvisor and ANGI used systemically flawed and deficient
processes to generate Leads that were not of the nature and quality of the Leads advertised to
HSPs.
(e) Whether HomeAdvisor and ANGI charged the HSPs for Leads that were not
qualified business opportunities.
(f) Whether HomeAdvisor and ANGI charged Plaintiffs and the members of the
Classes for Leads that were sent to more than four HSPs.
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(g) Whether HomeAdvisor and ANGI charged HSPs for mHelpDesk without
knowledge or consent of the HSPs.
(h) Whether HomeAdvisor and ANGI systemically disregarded the parameters and
limits placed by HSPs on the type and number of Leads to be charged to HSPs.
(i) Whether HomeAdvisor and ANGI employed tactics preventing HSPs from
canceling their membership and receipt of Leads, and from disputing or receiving meaningful
credit or refunds for bogus Leads.
(j) Whether IAC aided and abetted HomeAdvisor’s and ANGI’s fraudulent and
deceptive conduct.
(l) The amount of revenues and profits Defendants received and/or the amount of
monies imposed on or lost by the members of the State Classes as a result of Defendants’
conduct.
(m) Whether the members of the State Classes are threatened with irreparable harm
and/or are entitled to injunctive and other equitable relief and, if so, what is the nature of such
relief.
(n) Whether the members of the State Classes are entitled to payment of damages
plus interest thereon.
240. The claims asserted by Plaintiffs in this action are typical of the claims of the
members of the State Classes, as the claims arise out of the same wrongful and unlawful course
HomeAdvisor Leads and its membership services. Plaintiffs and the other members of the State
Classes have sustained economic injuries arising from Defendants’ conduct, and the relief sought
241. Plaintiffs will fairly and adequately represent and protect the interests of the
members of the State Classes, and do not have interests antagonistic to the interests of any other
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242. Plaintiffs have retained counsel competent and experienced in the prosecution of
243. Certification of the State Classes is appropriate under Federal Rule of Civil
Procedure 23 because questions of law or fact common to the respective members of the State
Classes predominate over questions of law or fact affecting only individual members of the State
Classes. This predominance makes class litigation under Fed. R. Civ. P. 23 superior to any other
244. A class action is superior to other available methods for the fair and efficient
adjudication of this controversy. Plaintiffs and the members of the State Classes have all
suffered and will continue to suffer harm and damages as a result of Defendants’ unlawful and
wrongful conduct. Absent a class action, most members of the State Classes would likely find
the cost of litigating their claims prohibitively high and would therefore have no effective
remedy at law. Because of the relatively small size of the damages of each member of the State
Classes, it is highly likely that Plaintiffs or any other member of the State Classes would not be
able to protect their own interest and afford to seek legal redress for Defendants’ misconduct,
because the cost of litigation through individual lawsuits might exceed expected recovery.
Therefore, absent a class action, members of the State Classes will continue to incur damages
grounds generally applicable to the Plaintiffs and the State Classes, thereby making appropriate
the relief sought on behalf of the State Classes as a whole. Further, given the large number of
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HSPs subscribed to HomeAdvisor, allowing individual actions to proceed in lieu of a class action
would run the risk of yielding inconsistent and conflicting adjudications. Treatment of common
questions of law and fact in this action is a superior method to multiple individual actions or
piecemeal litigation in that class treatment will conserve the resources of the courts and the
246. For the Misappropriation Plaintiffs’ claims under the Lanham Act Section 43(a),
15 U.S.C. § 1125(a)(1)(A), (Count XXXVI) and Lanham Act Section 43(a), 15 U.S.C. §
1125(a)(1)(B), (Count XXXVII), the Misappropriation Plaintiffs seek to certify the following
All persons and entities who since July 13, 2015, did not have an active home
service professional membership (including for HomeAdvisor’s Pro ConnectTM,
Total ConnectTM, and/or for the predecessor or subsequent HomeAdvisor home
service professional membership programs) and whose names, likeness or
trademark appeared on HomeAdvisor’s website or any HomeAdvisor affiliate
website.
247. The Misappropriation Plaintiffs also seek to certify classes for their state
common law unfair competition and statutory claims under Colorado law (“Colorado
Misappropriation Class”), Florida law (“Florida Misappropriation Class”), Idaho law (“Idaho
Misappropriation Class”), New York law (“New York Misappropriation Class”), and Ohio Law
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248. The Misappropriation Plaintiffs may seek to certify additional classes and/or
subclasses and reserve the right to modify or amend the definition of the proposed Lanham Act
and State Misappropriation Classes before the Court determines whether certification is
appropriate.
249. Excluded from the Lanham Act and State Misappropriation Classes are: the
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Lanham Act Defendants, any entity in which any Lanham Act Defendant has a controlling
interest, and each Lanham Act Defendants’ officers, directors, affiliates, legal representatives,
any judge or magistrate presiding over this action, as well as their immediate family members.
250. The Lanham Act Defendants’ practices were applied uniformly to all members of
the Lanham Act and State Misappropriation Classes, so that the questions of law and fact are
common to all members of the Lanham Act and State Misappropriation Classes.
251. All members of the Lanham Act and State Misappropriation Classes were and are
similarly affected by the wrongful and unfair practices of the Lanham Act Defendants, resulting
in harm to of the Members of the Lanham Act and State Misappropriation Classes, and the relief
sought herein is for the benefit of the Misappropriation Plaintiffs and members of the Lanham
that the Lanham Act and State Misappropriation Classes consists of many thousands of
members, the identities and contact information of whom is readily ascertainable from
253. Questions of law and fact common to the Misappropriation Plaintiffs and Lanham
Act and State Misappropriation Classes exist that predominate over the questions affecting only
individual members of the Lanham Act and State Misappropriation Classes. The common legal
(a) Whether the Lanham Act Defendants’ online advertisements and maintenance of
terminated HSPs’ profiles on HomeAdvisor websites are part of a pattern and practice to divert
or hijack business away from Plaintiffs and the Lanham Act and State Misappropriation Class
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(b) Whether the Lanham Act Defendants’ offers to connect homeowners to HSPs
who are no longer affiliated with HomeAdvisor violates 15 U.S.C. § 1125(a)(1)(A) of the
Lanham Act.
(c) Whether the Lanham Act Defendants’ false representations that Plaintiffs and the
Lanham Act and State Misappropriation Class Members were unable to accept new business
opportunities violated 15 U.S.C. § 1125(a)(1)(B) of the Lanham Act.
(e) Whether the Lanham Act Defendants’ conduct violates consumer protection
statutes, and other laws as asserted herein.
(f) The amount of revenues and profits the Lanham Act Defendants received and/or
the amount of monies imposed on or lost by the members of the Lanham Act and State
Misappropriation Classes as a result of the Lanham Act Defendants’ conduct.
(g) Whether the members of the Lanham Act and State Misappropriation Classes are
threatened with irreparable harm and/or are entitled to injunctive and other equitable relief and, if
so, what is the nature of such relief.
(h) Whether the members of the Lanham Act and State Misappropriation Classes are
entitled to payment of damages plus interest thereon.
254. The claims asserted by the Misappropriation Plaintiffs in this action are typical of
the claims of the members of the Lanham Act and State Misappropriation Classes, as the claims
arise out of the same wrongful and unlawful course of conduct by the Lanham Act Defendants,
including the Lanham Act Defendants’ deceptive conduct in misappropriating the names,
trademarks or likenesses to divert business from the members of the Lanham Act and State
members of the Lanham Act and State Misappropriation Classes have sustained economic
injuries arising from the Lanham Act Defendants’ conduct, and the relief sought is common to
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255. The Misappropriation Plaintiffs will fairly and adequately represent and protect
the interests of the members of the Lanham Act and State Misappropriation Classes, and do not
have interests antagonistic to the interests of any other member of the Lanham Act and State
Misappropriation Classes.
256. The Misappropriation Plaintiffs have retained counsel competent and experienced
257. Certification of the Lanham Act and State Misappropriation Classes is appropriate
under Federal Rule of Civil Procedure 23 because questions of law or fact common to the
respective members of the Lanham Act and State Misappropriation Classes predominate over
questions of law or fact affecting only individual members of the Lanham Act and State
Misappropriation Classes. This predominance makes class litigation under Fed. R. Civ. P. 23
superior to any other method available for a fair and efficient decree of the claims.
258. A class action is superior to other available methods for the fair and efficient
adjudication of this controversy. The Misappropriation Plaintiffs and the members of the
Lanham Act and State Misappropriation Classes have all suffered and will continue to suffer
harm and damages as a result of the Lanham Act Defendants unlawful and wrongful conduct.
Absent a class action, most members of the Lanham Act and State Misappropriation Classes
would likely find the cost of litigating their claims prohibitively high and would therefore have
no effective remedy at law. Because of the relatively small size of the damages of each member
of the Lanham Act and State Misappropriation Classes, it is highly likely that the
Misappropriation Plaintiffs or any other member of the Lanham Act and State Misappropriation
Classes would be able to protect their own interest and afford to seek legal redress for the
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Lanham Act Defendants’ misconduct, because the cost of litigation through individual lawsuits
might exceed expected recovery. Therefore, absent a class action, members of the Lanham Act
and State Misappropriation Classes will continue to incur damages and the Lanham Act
259. Certification also is appropriate because the Lanham Act Defendants acted, or
refused to act, on grounds generally applicable to the Plaintiffs and the Lanham Act and State
Misappropriation Classes, thereby making appropriate the relief sought on behalf of the Lanham
Act and State Misappropriation Classes as a whole. Further, given the large number of HSPs
would run the risk of yielding inconsistent and conflicting adjudications. Treatment of common
questions of law and fact in this action is a superior method to multiple individual actions or
piecemeal litigation in that class treatment will conserve the resources of the courts and the
CAUSES OF ACTION
California
COUNT I
Violation of the California Unfair Competition Law,
Cal. Bus. & Prof. Code §§ 17200, et seq.
(On Behalf Plaintiff Seldner and the California Class)
260. Plaintiff Seldner repeats and realleges the allegations above as if fully set forth
herein.
261. Plaintiff Seldner brings this claim on behalf of himself and the California Class.
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263. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
264. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
265. California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code §§
17200, et seq., proscribes acts of unfair competition, including “any unlawful, unfair or
fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising.”
266. HomeAdvisor’s, ANGI’s and IAC’s conduct, as described herein, was and is in
violation of the UCL. HomeAdvisor, ANGI and IAC have engaged in “unfair” business
practices, ways and/or acts by, among other things, falsely representing the quality and nature of
the Leads; failing to disclose the cost of mHelpDesk; and misrepresenting the availability of
267. HomeAdvisor, ANGI and IAC have engaged in unfair competition and unfair,
unlawful or fraudulent business practices by their conduct, statements, and omissions described
above. In addition, HomeAdvisor, ANGI and IAC have engaged in unfair competition by
268. The acts engaged in by HomeAdvisor, ANGI and IAC are fraudulent and show a
269. These acts and practices have deceived Plaintiff Seldner and are likely to deceive
the public. HomeAdvisor’s, ANGI’s and IAC’s violations of the UCL caused injuries to Plaintiff
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270. The injuries suffered by Plaintiff Seldner and members of the California Class are
are the injuries that Plaintiff Seldner and the California Class members should have or could
271. HomeAdvisor’s, ANGI’s and IAC’s representations and acts as set out above
induced Plaintiff Seldner and other similarly situated members of the California Class to pay the
amounts charged by HomeAdvisor, ANGI and IAC allowing them to collect sums never agreed
272. As a direct and legal result of its unlawful, unfair, and fraudulent conduct
described above, Defendants have been unjustly enriched. Specifically, HomeAdvisor, ANGI
and IAC have been unjustly enriched by the receipt of large sums of ill-gotten gains from the
273. Pursuant to California Business and Professions Code section 17203, Plaintiff
(a) Compelling HomeAdvisor, ANGI and IAC to make restitution to Plaintiff Seldner
and the California Class for all funds unlawfully, unfairly, or fraudulently obtained by
HomeAdvisor, ANGI and IAC as a result of their violations of California Business and
(b) Declaring that HomeAdvisor, ANGI and IAC have violated the provisions of
California Business & Professions Code section 17200, and California Business and Professions
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(c) Enjoining and restraining HomeAdvisor, ANGI and IAC from charging and
274. In prosecuting this action for the enforcement of important rights affecting the
public interest, Plaintiff Seldner seeks to recover attorney fees under (i) section 1021.5 of the
Code of Civil Procedure and/or (ii) the “common fund” doctrine available to a prevailing
COUNT II
False and Misleading Advertising,
Cal. Bus. & Prof. Code §§ 17500, et seq.
(On Behalf Plaintiff Seldner and the California Class)
275. Plaintiff Seldner repeats and realleges the allegations above as if fully set forth
herein.
277. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
278. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
279. Plaintiff Seldner brings this claim on behalf of himself and the California Class
for violations of the California Business & Professions Code § 17500, which states, in relevant
part:
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California and the United States, through advertising, marketing and other publications,
statements that were untrue or misleading, and which were known, or which by the exercise of
reasonable care should have been known to HomeAdvisor, ANGI and IAC, to be untrue and
misleading to Plaintiff Seldner and the other members of the California Class.
281. HomeAdvisor, ANGI and IAC have violated § 17500 because their
misrepresentations and omissions regarding the nature and quality of the membership programs,
including the nature and quality of the Leads, the inclusion of mHelpDesk in the membership
programs and the prices charged for mHelpDesk, and their policies and practices relating to Lead
generation and dissemination to HSPs detailed in this Complaint were material and likely to
282. Plaintiff Seldner and the other members of the California Class have suffered an
injury in fact, including the loss of money or property, as a result of HomeAdvisor’s, ANGI’s
and IAC’s unfair, unlawful, and/or deceptive practices. In choosing to buy a membership
program or Leads from HomeAdvisor, ANGI and IAC, Plaintiff Seldner and the other members
ANGI and IAC with respect to the price they would pay, the nature and quality of the Leads sold
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by HomeAdvisor and ANGI, and HomeAdvisor’s and ANGI’s adherence to the parameters and
limits the HSPs established for their membership program. Had Plaintiff Seldner and the other
members of the California Class known the true facts, they would not have agreed to buy a
membership program or Leads from HomeAdvisor, ANGI and IAC, remained HomeAdvisor
customers, and/or paid as much for a membership program or Leads. Accordingly, Plaintiff
Seldner and the other members of the California Class overpaid and did not receive the benefit of
their bargain.
283. All of the wrongful conduct alleged herein occurred, and continues to occur, in
the conduct of HomeAdvisor’s, ANGI’s and IAC’s business. HomeAdvisor’s, ANGI’s and
IAC’s wrongful conduct is part of a pattern or generalized course of conduct that was
284. Plaintiff Seldner, on behalf of himself and the California Class, seeks restitution,
COUNT III
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Seldner and the California Class)
285. Plaintiff Seldner repeats, realleges, and incorporates by reference each of the
287. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
288. HomeAdvisor and ANGI concealed and made misrepresentations of material facts
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concerning the nature and quality of the membership programs– including that the Leads were
not from serious, project-ready homeowners and were sent to more than four HSPs – and the
inclusion of the mHelpDesk in the membership programs and the monthly fees charged for
mHelpDesk. Specifically, HomeAdvisor and ANGI knew (or should have known) that the
membership programs were not of the nature and quality that was advertised and that Leads and
mHelpDesk were part of the membership programs for additional fees. HomeAdvisor and ANGI
concealed material facts and/or made the material misrepresentations in order to boost the sales
289. HomeAdvisor and ANGI knew that Plaintiff Seldner and California Class
Members relied upon such material representations about the membership programs, and
HomeAdvisor and ANGI omitted material information and/or made such material
representations about the benefits of the membership programs to induce Plaintiff Seldner and
members of the California Class to act. Moreover, to pay for the membership program, the HSPs
were required to provide either a checking/savings account from which HomeAdvisor and ANGI
can automatically debit all membership fees and Lead fees, or a credit card on which
HomeAdvisor and ANGI can automatically charge such fees. Then, on a weekly basis,
HomeAdvisor and ANGI automatically charged the HSPs for each Lead sent. The fee for each
Lead is automatically charged to the HSPs’ credit cards and/or debited from his/her/its debit
accounts. Consequently, the viability, accuracy, seriousness, qualified nature and limited
290. The representations about the membership programs and the omissions about the
Leads were material to Plaintiff Seldner, such that, had Plaintiff Seldner known that the
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representations were false and HomeAdvisor and ANGI had omitted material information,
Plaintiff Seldner would not have purchased a membership program and provided HomeAdvisor
and ANGI with the means to charge their credit card and/or debit their bank accounts. But
Plaintiff Seldner and the California Class did not know the true facts, and relied upon the
291. Plaintiff Seldner and the members of the California Class had no way of knowing
that HomeAdvisor’s and ANGI’s representations were false and gravely misleading, or that
HomeAdvisor and ANGI had omitted imperative details. Plaintiff Seldner and the members of
the California Class did not, and could not, unravel HomeAdvisor’s deception on their own.
292. HomeAdvisor and ANGI knew their statements were false, and intended that
Plaintiff Seldner and the members of the California Class would rely upon the false
representations.
293. HomeAdvisor and ANGI concealed and failed to disclose to Plaintiff Seldner and
members of the California Class that, despite their affirmative representations about the services,
including the membership programs and Leads, they would charge Plaintiff Seldner and the
members of the California Class for unqualified Leads and mHelpDesk. HomeAdvisor and
ANGI concealed these material facts with the intention that Plaintiff Seldner and the members of
omissions, Plaintiff Seldner and the members of the California Class were induced into the
purchase of goods and/or services that they otherwise would not have purchased, or would have
paid less, and have suffered injury, harm and damages as described herein.
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deliberately, with intent to defraud, and in reckless disregard of Plaintiff Seldner s’ and the
California Class’ rights and well-being to enrich HomeAdvisor and ANGI. HomeAdvisor’s and
COUNT IV
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Seldner and the California Class)
296. Plaintiff Seldner repeats, realleges, and incorporates by reference each of the
297. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
298. HomeAdvisor and ANGI committed fraud resulting in injury to Plaintiff Seldner
and the California Class, as alleged herein. IAC’s conduct alleged herein enabled, substantially
assisted, encouraged, and was a substantial factor in the commission of such fraud.
299. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware that HomeAdvisor and ANGI concealed and made misrepresentations of material
facts concerning the nature and quality of the membership programs including that the Leads
were not from serious, project-ready homeowners and were sent to more than four HSPs.
Specifically, IAC knew (or should have known) that the membership programs were not of the
nature and quality that HomeAdvisor and ANGI advertised and that Leads and mHelpDesk were
part of the membership programs for additional fees. IAC aided and abetted HomeAdvisor’s and
ANGI’s concealment of material facts and/or material misrepresentations in order the boost the
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300. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware that Plaintiff Seldner and California Class Members relied upon such material
representations about the membership programs, and that HomeAdvisor and ANGI omitted
material information and/or made such material representations about the benefits of the
membership programs to induce Plaintiff Seldner and members of the California Class to act.
Moreover, to pay for the membership programs, the HSPs were required to provide either a
checking/savings account from which HomeAdvisor and ANGI can automatically debit all
membership fees and Lead fees, or a credit card on which HomeAdvisor can automatically
charge such fees. Then, on a weekly basis, HomeAdvisor and ANGI automatically charged the
HSPs for each Lead sent. The fee for each Lead is automatically charged to the HSPs’ credit
cards and/or debited from his/her/its debit accounts. Consequently, IAC knew, or was aware,
that the viability, accuracy, seriousness, qualified nature and limited distribution of each Lead are
301. As a result of its control over HomeAdvisor’s business operations, IAC had actual
knowledge, or should have known, of measures it could have taken to prevent HomeAdvisor and
ANGI from utilizing fraudulent misrepresentations and omissions to sell the membership
programs and Leads and to provide HSPs with accurate information but nevertheless chose to
302. Before and during the commission of the fraud, IAC intended to aid and abet, and
did substantially assist, HomeAdvisor and ANGI in the fraud perpetrated on Plaintiff Seldner and
the California Class by making statements about the quality of the Leads in regulatory filings and
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concealing material information about the quality and nature of the membership programs.
303. IAC’s acts were done maliciously, oppressively, deliberately, with intent to
defraud, and in reckless disregard of Plaintiff Seldner’s and the California Class’ rights and well-
COUNT V
Breach Of Implied Contract
(On Behalf of Plaintiff Seldner and the California Class)
304. Plaintiff Seldner repeats, realleges and incorporates by reference each of the
306. Plaintiff Seldner and the members of the California Class paid money to
307. An implied contract was created between HomeAdvisor and the HSPs whereby
HomeAdvisor was to provide Plaintiff Seldner and HSPs marketing tools and, if desired, Leads
308. Plaintiff Seldner and the members of the California Class paid an annual fee to
join a HomeAdvisor membership program and were charged hundreds and thousands of dollars
for Leads.
309. The sale of HomeAdvisor’s Lead services was misrepresented to Plaintiff Seldner
and the members of the California Class. Furthermore, HomeAdvisor’s Leads and Lead
generation process are systemically flawed, and are not comprised of targeted, serious, qualified
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310. The Leads were not of the nature and quality of the Leads that were represented
and required, yet HomeAdvisor sent to and charged the HSPs for such Leads. HomeAdvisor did
not generate Leads for the HSPs that were targeted and from serious, qualified or project-ready
homeowners. Also, HomeAdvisor charged HSPs for Leads that have been sent to more than four
HSPs and for mHelpDesk without knowledge or consent of the HSPs. Furthermore,
HomeAdvisor systemically disregarded the parameters and limits placed on the type and number
of Leads to be charged to HSPs. Finally, HomeAdvisor employed tactics that prevent HSPs
from canceling their membership and Leads, and from disputing the propriety of a Lead in order
to secure a refund.
311. Accordingly, HomeAdvisor has breached the implied contract that was formed
312. As a result, Plaintiff Seldner and members of the California Class have been
harmed and/or injured have incurred economic damages as a proximate and direct result of the
breach by HomeAdvisor.
COUNT VI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Seldner and the California Class)
313. Plaintiff Seldner repeats, realleges and incorporates by reference each of the
315. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
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316. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
HomeAdvisor, ANGI and IAC have profited and benefited from Plaintiff Seldner’s and the
California Class’ purchase of the membership programs and payment for the Leads and
mHelpDesk.
318. HomeAdvisor, ANGI and IAC have voluntarily accepted and retained these
profits and benefits, with full knowledge and awareness that, as a result of HomeAdvisor’s,
ANGI’s and IAC’s misconduct alleged herein, Plaintiff Seldner and the California Class were
not receiving services of the quality, nature, fitness, or value that had been represented by
HomeAdvisor, ANGI and IAC, and that a reasonable consumer would expect.
319. HomeAdvisor, ANGI and IAC have been unjustly enriched by their fraudulent
and deceptive conduct and withholding of benefits to Plaintiff Seldner and the California Class,
320. Equity and good conscience militate against permitting HomeAdvisor, ANGI and
IAC to retain these profits and benefits, and permitting HomeAdvisor, ANGI and IAC to do so
misrepresentations and misconduct against Plaintiff Seldner and members of the California
benefit conferred upon them by Plaintiff Seldner and the members of the California Class is
unjust and inequitable, HomeAdvisor, ANGI and IAC must pay restitution to Plaintiff Seldner
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Colorado
COUNT VII
Violations of Colorado Consumer Protection Act ("CCPA"),
Colo. Rev. Stat. § 6-1-101, et seq.
(On Behalf of Plaintiffs Brad and Linda McHenry and the Colorado Class)
322. Plaintiffs Brad and Linda McHenry repeat and reallege the allegations above as if
324. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
325. Plaintiffs Brad and Linda McHenry bring this claim on behalf of themselves and
326. Plaintiffs Brad and Linda McHenry are informed and believe, and thereon allege,
that HomeAdvisor and ANGI engaged in extensive marketing, advertising and selling, including,
but not limited to, electronic media, television, internet and direct marketing through their
327. HomeAdvisor and ANGI characterized the Leads as: from targeted, serious,
qualified and project ready homeowners; qualified new business opportunities (Pro Leads) to
keep your pipeline full; from ‘ready-to-buy’ customers; targeted prospects and highly targeted
prospects; from project ready homeowners; from homeowners actively seeking the services;
from qualified homeowners; from serious homeowners; and being sent only to up to four HSPs.
See supra ¶¶ 57, 58, 214. But, the Leads are not as HomeAdvisor and ANGI represented or of
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the quality and nature of what Plaintiffs Brad and Linda McHenry and the Colorado Class paid
for because HomeAdvisor and ANGI maintain and employ systemically flawed and deficient
processes to generate Leads, and send and charge HSPs for Leads that were not of such nature
and quality.
328. In addition, HomeAdvisor and ANGI concealed and omitted material information
about: (a) the nature of the membership programs; (b) the Leads, including the true source and
nature of the Leads, in that, inter alia, the Leads were generated through methods that could not
and did not provide the Leads as advertised; and, (c) that substantial monthly fees would be
329. HomeAdvisor and ANGI also systemically disregarded the parameters and limits
330. HomeAdvisor and ANGI employed tactics that prevented or discouraged HSPs
from canceling their membership and Leads, and from disputing the propriety of a Lead in order
to secure a refund.
331. HomeAdvisor and ANGI had knowledge that the Leads and their practices and
services were contrary to what the HSPs had paid over $763 million for in 2017 alone.
332. HomeAdvisor’s and ANGI’s failure to disclose and instead to conceal the
foregoing facts was intended to and induced the McHenry Plaintiffs and the members of the
Colorado Class to pay millions of dollars for membership programs, including Leads and
mHelpDesk.
333. This cause of action is brought on behalf of Plaintiffs Brad and Linda McHenry
and all similarly situated members of the Colorado Class, pursuant to COLO. REV. STAT. § 6-
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1-105(e), (g), (i), (l), (n) and (u), which provide, in pertinent part, that “a person engages in a
deceptive trade practice when, in the course of such person’s business, vocation, or occupation,
such person —
* * *
(e) Knowingly makes a false representation as to the characteristics, ingredients, uses,
benefits, alterations, or quantities of goods, food, services, or property or a false representation as
to the sponsorship, approval, status, affiliation, or connection of a person therewith;
* * *
(g) Represents that goods, food, services, or property are of a particular standard, quality,
or grade, or that goods are of a particular style or model, if he knows or should know that they
are of another;
* * *
(i) Advertises goods, services, or property with intent not to sell them as advertised;
* * *
(l) Makes false or misleading statements of fact concerning the price of goods, services,
or property or the reasons for, existence of, or amounts of price reductions;
* * *
(n) Employs "bait and switch" advertising, which is advertising accompanied by an
effort to sell goods, services, or property other than those advertised or on terms other than those
advertised and which is also accompanied by one or more of the following practices:
* * *
(III) Requiring tie-in sales or other undisclosed conditions to be met prior to selling the
advertised goods, property, or services;
* * *
(u) Fails to disclose material information concerning goods, services, or property which
information was known at the time of an advertisement or sale if such failure to disclose such
information was intended to induce the consumer to enter into a transaction.
334. In addition, C.R.S. § 6-1-105(3) provides: “The deceptive trade practices listed in
this section are in addition to and do not limit the types of unfair trade practices actionable at
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336. HomeAdvisor’s and ANGI’s misconduct significantly impacts the public as actual
or potential consumers of HomeAdvisor’s and ANGI’s services described herein. The deceptive
marketing, advertising and selling through electronic media, television, internet and direct
marketing were directed to the market generally resulting in deception of actual and prospective
purchasers.
337. The wrongdoing alleged herein has a significant public impact. Among other
181,000 paying Service Professionals in the United States, who provided services ranging from
HomeAdvisor and ANGI are sophisticated and have superior bargaining power over the HSPs, as
well as the homeowners, who are affected by the deceptive and false practices challenged herein;
and, the wrongdoing has impacted HSPs, causing them substantial monetary damages, and has
338. HomeAdvisor’s and ANGI’s deceptive practices caused damage to Plaintiffs Brad
and Linda and all Colorado Class Members. Because of HomeAdvisor’s and ANGI’s unfair,
deceptive and fraudulent business practices, Plaintiffs Brad and Linda McHenry and the
Colorado Class Members suffered and continue to suffer injuries by way of monetary loss.
HomeAdvisor and ANGI. HomeAdvisor and ANGI committed deceptive acts and practices, and
omitted material information, which have a capacity, tendency, and/or likelihood to deceive or
confuse reasonable HSPs in that such consumers had a good faith basis for believing that (a) the
Leads were generated, marketed, distributed and charged to the HSPs in a reliable and honest
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manner; (b) they would not be charged for mHelpDesk; and (c) they would be able to control the
Leads, as well as suspend or cancel receipt of and being charged for the Leads. Instead, the
McHenry Plaintiffs and the members of the Colorado Class were and were likely to be deceived
340. Plaintiffs Brad and Linda McHenry therefore seeks an order of this Court:
any unfair and/or deceptive business acts or practices related to their marketing,
Programs, mHelpDesk, Lead management, requests for refunds, and requests for
b. Requiring HomeAdvisor and ANGI to cease business practices that generate and
c. Enjoining HomeAdvisor and ANGI from representing that the Leads are
qualified and of similar nature and quality, when they are not;
e. Enjoining HomeAdvisor and ANGI from initiating and proceeding with any
341. Plaintiffs Brad and Linda McHenry and the members of the Colorado Class may
be irreparably harmed and/or denied an effective and complete remedy if such an order is not
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granted. The unfair and/or deceptive acts and practices of HomeAdvisor and ANGI, as described
above, present a serious threat to the McHenry Plaintiffs and the members of the Colorado Class.
COUNT VIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiffs Brad and Linda McHenry and the Colorado Class)
342. Plaintiffs Brad and Linda McHenry repeat, reallege, and incorporate by reference
344. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
345. HomeAdvisor and ANGI concealed and made misrepresentations of material facts
concerning the nature of the membership programs, including the nature and quality of the Leads
– namely that the Leads were not from serious, project-ready homeowners and were sent to more
than four HSPs – and the inclusion of the mHelpDesk in the membership programs and the
monthly fees charged for mHelpDesk. Specifically, HomeAdvisor and ANGI knew (or should
have known) that the membership programs were not of the nature that was advertised, including
that nature and quality of the Leads and that mHelpDesk was included in the membership
programs for an additional monthly fee. HomeAdvisor and ANGI concealed material facts
and/or made the material misrepresentations in order to boost the sales of membership programs
and Leads.
346. HomeAdvisor and ANGI knew that the McHenry Plaintiffs and Colorado Class
Members relied upon such material representations about the Leads, and HomeAdvisor and
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ANGI omitted material information and/or made such material representations to induce the
McHenry Plaintiffs and members of the Colorado Class to act, i.e. to pay for a Membership
Program to get access to the Leads. Moreover, to pay for the Leads, the HSPs were required to
provide either a checking/savings account from which HomeAdvisor and ANGI can
automatically debit all Membership Fees and Lead fees, or a credit card on which HomeAdvisor
and ANGI can automatically charge such fees. Then, on a weekly basis, HomeAdvisor and
ANGI automatically charged the HSPs for each Lead sent. The fee for each Lead is
automatically charged to the HSPs’ credit cards and/or debited from his/her/its debit accounts.
Consequently, the viability, accuracy, seriousness, qualified nature and limited distribution of
347. The representations about the Leads and the omissions about the Leads were
material to the McHenry Plaintiffs, such that, had the McHenry Plaintiffs known that the
representations were false and HomeAdvisor had omitted material information, the McHenry
Plaintiffs would not have purchased a Membership Program and provided HomeAdvisor and
ANGI with the means to charge their credit card and/or debit their bank accounts. But the
McHenry Plaintiffs and the Colorado Class did not know the true facts, and relied upon the
348. Plaintiffs Brad and Linda McHenry and the members of the Colorado Class had
no way of knowing that HomeAdvisor’s and ANGI’s representations were false and gravely
misleading, or that HomeAdvisor and ANGI had omitted imperative details. Plaintiffs Brad and
Linda McHenry and the members of the Colorado Class did not, and could not, unravel
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349. HomeAdvisor and ANGI knew their statements were false, and intended that the
McHenry Plaintiffs and the members of the Colorado Class would rely upon the false
representations.
350. HomeAdvisor and ANGI concealed and failed to disclose to the McHenry
Plaintiffs and members of the Colorado Class that, despite their affirmative representations about
the membership programs, including the Leads, they would charge the McHenry Plaintiffs and
the members of the Colorado Class for unqualified Leads and mHelpDesk. HomeAdvisor and
ANGI concealed these material facts with the intention that the McHenry Plaintiffs and the
omissions, the McHenry Plaintiffs and the members of the Colorado Class were induced into the
purchase of goods and/or services that they otherwise would not have purchased, or would have
paid less, and have suffered injury, harm and damages as described herein.
deliberately, with intent to defraud, and in reckless disregard of the McHenry Plaintiffs’ and the
Colorado Class’ rights and well-being to enrich HomeAdvisor and ANGI. HomeAdvisor’s and
COUNT IX
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Brad and Linda McHenry and the Colorado Class)
353. Plaintiffs Brad and Linda McHenry repeat, reallege, and incorporate by reference
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354. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
355. HomeAdvisor and ANGI committed fraud resulting in injury to the McHenry
Plaintiffs and the Colorado Class, as alleged herein. IAC’s conduct alleged herein enabled,
substantially assisted, encouraged, and was a substantial factor in the commission of such fraud.
356. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware that HomeAdvisor and ANGI concealed and made misrepresentations of material
facts concerning the nature of the membership programs, including the nature and quality of the
Leads – namely that the Leads were not from serious, project-ready homeowners and were sent
to more than four HSPs. Specifically, IAC knew (or should have known) that the membership
programs were not of the nature that HomeAdvisor and ANGI advertised, including the nature
and quality of the Leads and the inclusion of and cost associated with mHelpDesk. IAC aided
and abetted HomeAdvisor’s and ANGI’s concealment of material facts and/or material
357. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware the McHenry Plaintiffs and Colorado Class Members relied upon such material
representations about the Leads, and HomeAdvisor and ANGI omitted material information
and/or made such material representations to induce the McHenry Plaintiffs and members of the
Colorado Class to act, i.e. to pay for a membership program to get access to the Leads.
Moreover, to pay for the Leads, the HSPs were required to provide either a checking/savings
account from which HomeAdvisor and ANGI can automatically debit all Membership Fees and
Lead fees, or a credit card on which HomeAdvisor can automatically charge such fees. Then, on
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a weekly basis, HomeAdvisor and ANGI automatically charged the HSPs for each Lead sent.
The fee for each Lead is automatically charged to the HSPs’ credit cards and/or debited from
his/her/its debit accounts. Consequently, IAC knew, or was aware, that the viability, accuracy,
seriousness, qualified nature and limited distribution of each Lead are material to the HSPs.
358. As a result of its control over HomeAdvisor’s business operations, IAC had actual
knowledge, or should have known, of measures it could have taken to prevent HomeAdvisor and
ANGI from utilizing fraudulent misrepresentations and ommissions to sell Memberships and
Leads and to provide HSPs with accurate information but nevertheless chose to maintain policies
359. Before and during the commission of the fraud, IAC intended to aid and abet, and
did substantially assist, HomeAdvisor and ANGI in the fraud perpetrated on the McHenry
Plaintiffs and the Colorado Class by making statements about the quality of the Leads in
regulatory filings and concealing material information about the quality and nature of the Leads.
360. IAC’s acts were done maliciously, oppressively, deliberately, with intent to
defraud, and in reckless disregard of the McHenry Plaintiffs’ and the Colorado Class’ rights and
COUNT X
Breach Of Implied Contract
(On Behalf of Plaintiffs Brad and Linda McHenry and the Colorado Class)
361. Plaintiffs Brad and Linda McHenry repeat, reallege and incorporate by reference
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363. Plaintiffs Brad and Linda McHenry and the members of the Colorado Class paid
364. An implied contract was created between HomeAdvisor and the HSPs whereby
HomeAdvisor was to send and charge the McHenry Plaintiffs and HSPs for Leads that were
365. The McHenry Plaintiffs and the members of the Colorado Class paid an annual
fee to join a HomeAdvisor Membership Program and paid hundreds and thousands of dollars for
Leads.
366. The Leads, as well as HomeAdvisor’s Lead generation process, however, are
systemically flawed and HomeAdvisor does not and cannot generate Leads of targeted, serious,
367. The Leads were not of the nature and quality of the Leads that were required, yet
HomeAdvisor sent to and charged the HSPs for such Leads. HomeAdvisor did not generate
Leads for the HSPs that were targeted and from serious, qualified or project-ready homeowners.
Also, HomeAdvisor charged the McHenry Plaintiffs and the members of the Colorado Class for
Leads that have been sent to more than four HSPs. HomeAdvisor also charged HSPs for
systemically disregarded the parameters and limits placed on the type and number of Leads to be
charged to HSPs. Finally, HomeAdvisor employed tactics that prevent HSPs from canceling
their membership and Leads, and from disputing the propriety of a Lead in order to secure a
refund.
368. Accordingly, HomeAdvisor has breached the implied contract that was formed
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between it and the McHenry Plaintiffs and members of the Colorado Class.
369. As a result, the McHenry Plaintiffs and members of the Colorado Class have been
harmed and/or injured have incurred economic damages as a proximate and direct result of the
breach by HomeAdvisor.
COUNT XI
Unjust Enrichment/Restitution
(On Behalf Of Plaintiffs Brad and Linda McHenry and the Colorado Class)
370. Plaintiffs Brad and Linda McHenry repeat, reallege and incorporate by reference
372. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
373. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
HomeAdvisor, ANGI and IAC have profited and benefited from the McHenry Plaintiffs’ and the
Colorado Class’ purchase of the membership programs and payment for the Leads and
mHelpDesk.
375. HomeAdvisor, ANGI and IAC have voluntarily accepted and retained these
profits and benefits, with full knowledge and awareness that, as a result of HomeAdvisor’s,
ANGI’s and IAC’s misconduct alleged herein, Plaintiffs Brad and Linda McHenry and the
Colorado Class were not receiving services of the quality, nature, fitness, or value that had been
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376. HomeAdvisor, ANGI and IAC have been unjustly enriched by their fraudulent
and deceptive conduct and withholding of benefits to the McHenry Plaintiffs and the Colorado
377. Equity and good conscience militate against permitting HomeAdvisor, ANGI and
IAC to retain these profits and benefits, and permitting HomeAdvisor, ANGI and IAC to do so
misrepresentations and misconduct against the McHenry Plaintiffs and members of the Colorado
benefit conferred upon them by the McHenry Plaintiffs and the members of the Colorado Class
is unjust and inequitable, HomeAdvisor, ANGI and IAC must pay restitution to the McHenry
Florida
COUNT XII
Violation of the Florida Deceptive and Unfair Trade Practices Act,
Fla. Stat. §501.201, et seq. (“DUTPA”)
(On Behalf of Plaintiff Ervine and the Florida Class)
379. Plaintiff Ervine repeats and realleges the allegations above as if fully set forth
herein.
380. Plaintiff Ervine brings this count individually and on behalf of the Florida Class.
382. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
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383. IAC is named as a Defendants in this Count by virtue of its conduct as follows
384. The Florida Deceptive and Unfair Trade Practices Act (“DUTPA”), Fla. Stat. §
501.201, et seq., makes unlawful any “[u]nfair methods of competition, unconscionable acts or
practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce.”
385. As amended by the Florida Legislature in 2001, a “person” who has suffered a
loss as a result of a violation of the Florida Deceptive and Unfair Trade Practices Act
(“FDUTPA”) has standing to sue under that statute. See Fla. Stat. § 501.211(2). This 2001
amendment replaced the word “consumer” with “person.” Plaintiff Ervine and the Florida Class
386. As set forth herein, HomeAdvisor, ANGI and IAC engaged in unfair methods of
competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the
conduct of trade or commerce in violation of the FDUPTA by willfully failing to disclose and
actively concealing material facts regarding the true nature of the membership programs,
including the quality of the Leads and that the HSPs would be signed up and charged for
mHelpDesk. Accordingly, HomeAdvisor, ANGI and IAC engaged in deceptive trade practices,
including knowingly making false and misleading statements and/or omitting material
information of the true nature membership programs, including the quality of the Leads and the
charges associated with mHelpDesk and that they did not contain the qualities or characteristics,
or perform, as advertised. HomeAdvisor, ANGI and IAC intentionally concealed the foregoing
from Plaintiff Ervine and the Florida Class; and/or HomeAdvisor, ANGI and IAC made
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incomplete representations about the Leads while purposefully withholding and omitting
material facts from Plaintiff Ervine and the Class that contradicted these representations.
387. Under the FDUTPA, § 501.211(2) and § 501.2105, Plaintiff Ervine and the
Florida Class are entitled to actual damages, injunctive relief and attorney’s fees and costs.
COUNT XIII
Fraud/Fraudulent Concealment
On Behalf of Plaintiff Ervine and the Florida Class)
388. Plaintiff Ervine repeats, realleges, and incorporates by reference each of the
390. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
391. HomeAdvisor and ANGI concealed and made misrepresentations of material facts
concerning the nature of the membership programs – namely that the Leads were not from
serious, project-ready homeowners and were sent to more than four HSPs – and the inclusion of
the mHelpDesk in the membership programs and the monthly fees charged for mHelpDesk.
Specifically, HomeAdvisor and ANGI knew (or should have known) that the membership
programs were not of the nature that was advertised, including the nature and quality of the
Leads and that mHelpDesk was included in the membership programs for an additional monthly
fee. HomeAdvisor and ANGI concealed material facts and/or made the material
392. HomeAdvisor and ANGI knew that Plaintiff Ervine and Florida Class Members
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relied upon such material representations about the Leads, and HomeAdvisor and ANGI omitted
material information and/or made such material representations to induce Plaintiff Ervine and
members of the Florida Class to act, i.e. to pay for a membership program to get access to the
Leads. Moreover, to pay for the Leads, the HSPs were required to provide either a
checking/savings account from which HomeAdvisor and ANGI can automatically debit all
Membership Fees and Lead fees, or a credit card on which HomeAdvisor can automatically
charge such fees. Then, on a weekly basis, HomeAdvisor and ANGI automatically charged the
HSPs for each Lead sent. The fee for each Lead is automatically charged to the HSPs’ credit
cards and/or debited from his/her/its debit accounts. Consequently, the viability, accuracy,
seriousness, qualified nature and limited distribution of each Lead are material to the HSPs.
393. The representations about the Leads and the omissions about the Leads were
material to Plaintiff Ervine and the Florida Class, such that, had Plaintiff Ervine and the Florida
Class known that the representations were false and HomeAdvisor and ANGI have omitted
material information, Plaintiff Ervine and the Florida Class would not have purchased a
Membership Program and provided HomeAdvisor and ANGI with the means to charge their
credit card and/or debit their bank accounts. But Plaintiff Ervine and the Florida Class did not
know the true facts, and relied upon the material representations and omissions made by
394. Plaintiff Ervine and the members of the Florida Class had no way of knowing that
HomeAdvisor’s and ANGI’s representations were false and gravely misleading, or that
HomeAdvisor and ANGI had omitted imperative details. Plaintiff Ervine and the members of the
Florida Class did not, and could not, unravel HomeAdvisor’s and ANGI’s deception on their
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own.
395. HomeAdvisor and ANGI knew their statements were false, and intended that
Plaintiff Ervine and the members of the Florida Classes would rely upon the false
representations.
396. HomeAdvisor and ANGI concealed and failed to disclose to Plaintiff Ervine and
members of the Florida Class that, despite their affirmative representations about the services,
including the Leads, they would charge Plaintiff Ervine and the members of the Florida Class for
unqualified Leads and mHelpDesk. HomeAdvisor and ANGI concealed these material facts
with the intention that Plaintiff Ervine and the members of the Florida Class would act.
omissions, Plaintiff Ervine and the members of the Florida Class were induced into the purchase
of goods and/or services that they otherwise would not have purchased, or would have paid less,
deliberately, with intent to defraud, and in reckless disregard of Plaintiff Ervine’s and the Florida
Class’ rights and well-being to enrich HomeAdvisor and ANGI. HomeAdvisor’s and ANGI’s
COUNT XIV
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Ervine and the Florida Class)
399. Plaintiff Ervine repeats, realleges, and incorporates by reference each of the
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400. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
401. HomeAdvisor and ANGI committed fraud resulting in injury to Plaintiff Ervine
and the Florida Class, as alleged herein. IAC’s conduct alleged herein enabled, substantially
assisted, encouraged, and was a substantial factor in the commission of such fraud.
402. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware that HomeAdvisor and ANGI concealed and made misrepresentations of material
facts concerning the nature of the membership programs – namely that the Leads were not from
serious, project-ready homeowners and were sent to more than four HSPs – and the inclusion of
the mHelpDesk in the membership programs and the monthly fees charged for mHelpDesk.
Specifically, IAC knew (or should have known) that the membership programs were not of the
nature that HomeAdvisor and ANGI advertised, including the nature and quality of the Leads
and that mHelpDesk was included in the membership programs for an additional monthly fee.
IAC aided and abetted HomeAdvisor’s and ANGI’s concealment of material facts and/or
material misrepresentations in order to boost the sales of membership programs and Leads.
403. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware Plaintiff Ervine and the Florida Class Members relied upon such material
representations about the Leads, and HomeAdvisor and ANGI omitted material information
and/or made such material representations to induce Plaintiffs and members of the Florida Class
to act, i.e. to pay for a membership program to get access to the Leads. Moreover, to pay for the
Leads, the HSPs were required to provide either a checking/savings account from which
HomeAdvisor and ANGI can automatically debit all Membership Fees and Lead fees, or a credit
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card on which HomeAdvisor can automatically charge such fees. Then, on a weekly basis,
HomeAdvisor and ANGI automatically charged the HSPs for each Lead sent. The fee for each
Lead is automatically charged to the HSPs’ credit cards and/or debited from his/her/its debit
accounts. Consequently, IAC knew, or was aware, that the viability, accuracy, seriousness,
qualified nature and limited distribution of each Lead are material to the HSPs.
404. As a result of its control of HomeAdvisor’s business operations, IAC had actual
knowledge, or should have known, of measures it could have taken to prevent HomeAdvisor and
ANGI from utilizing fraudulent misrepresentations and ommissions to sell Memberships and
Leads and to provide HSPs with accurate information but nevertheless chose to maintain policies
405. Before and during the commission of the fraud, IAC intended to aid and abet, and
did substantially assist, HomeAdvisor and ANGI in the fraud perpetrated on Plaintiff Ervine and
the Florida Class by making statements about the quality of the Leads in regulatory filings and
concealing material information about the quality and nature of the Leads.
406. IAC’s acts were done maliciously, oppressively, deliberately, with intent to
defraud, and in reckless disregard of Plaintiff Ervine’s and the Florida Class’ rights and well-
COUNT XV
Breach Of Implied Contract
(On Behalf of Plaintiff Ervine and the Florida Class)
407. Plaintiff Ervine repeats, realleges and incorporates by reference each of the
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409. Plaintiff Ervine and the members of the Florida Class paid money to
410. An implied contract was created between HomeAdvisor and the HSPs whereby
HomeAdvisor was to send and charge Plaintiff Ervine and HSPs for Leads that were from
411. Plaintiff Ervine and the members of the Florida Class paid an annual fee to join a
HomeAdvisor Membership Program and paid hundreds and thousands of dollars for Leads.
412. The Leads, as well as HomeAdvisor’s Lead generation process, however, are
systemically flawed and HomeAdvisor does not and cannot generate Leads of targeted, serious,
413. The Leads were not of the nature and quality of the Leads that were required, yet
HomeAdvisor sent to and charged the HSPs for such Leads. HomeAdvisor did not generate
Leads for the Home Services Professionals that were targeted and from serious, qualified or
project-ready homeowners. Also, HomeAdvisor charged Plaintiff Ervine and the members of the
Florida Class for Leads that have been sent to more than four HSPs. HomeAdvisor also charged
HSPs for mHelpDesk without knowledge or consent of the HSPs. Furthermore, HomeAdvisor
systemically disregarded the parameters and limits placed on the type and number of Leads to be
charged to HSPs. Finally, HomeAdvisor employed tactics that prevent HSPs from canceling
their membership and Leads, and from disputing the propriety of a Lead in order to secure a
refund.
414. Accordingly, HomeAdvisor has breached the implied contract that was formed
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415. As a result, Plaintiff Ervine and members of the Florida Class have been harmed
and/or injured have incurred economic damages as a proximate and direct result of the breach by
HomeAdvisor.
COUNT XVI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Ervine and the Florida Class)
416. Plaintiff Ervine repeats, realleges and incorporates by reference each of the
418. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
419. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
HomeAdvisor, ANGI and IAC have profited and benefited from Plaintiff Ervine and the Florida
Class’ purchase of the Membership Programs and payment for the Leads and mHelpDesk.
421. HomeAdvisor, ANGI and IAC have voluntarily accepted and retained these
profits and benefits, with full knowledge and awareness that, as a result of HomeAdvisor’s,
ANGI’s and IAC’s misconduct alleged herein, Plaintiff Ervine and the Florida Class were not
receiving services of the quality, nature, fitness, or value that had been represented by
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422. HomeAdvisor, ANGI and IAC have been unjustly enriched by their fraudulent
and deceptive conduct and withholding of benefits to Plaintiff Ervine and the Florida Class, at
423. Equity and good conscience militate against permitting HomeAdvisor, ANGI and
IAC to retain these profits and benefits, and permitting HomeAdvisor, ANGI and IAC to do so
misrepresentations and misconduct against Plaintiff Ervine and members of the Florida Class, as
alleged herein.
benefit conferred upon them by Plaintiff Ervine and the members of the Florida Class is unjust
and inequitable, HomeAdvisor, ANGI and IAC must pay restitution to Plaintiff Ervine and
Idaho
COUNT XVII
Violations of the Idaho Consumer Protection Act,
Idaho Civ. Code, § 480, et seq.
(On Behalf of Plaintiff Haukenes and the Idaho Class)
427. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
428. HomeAdvisor and ANGI and Plaintiff Haukenes are “persons” under Idaho Civil
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Code § 48-602(1).
429. HomeAdvisor and ANGI engaged in unfair methods and practices in the conduct
of trade or commerce in violation of the Idaho Consumer Protection Act (“ICPA”), Idaho Civ.
ingredients, uses, benefits, or quantities that they do not have or that a person has
to the consumer; or
commerce.
430. As set forth herein, HomeAdvisor and ANGI engaged in unconscionable acts or
practices, and unfair or deceptive acts or practices in the conduct of trade or commerce in
violation of the ICPA. HomeAdvisor and ANGI willfully failed to disclose and actively
concealed material facts regarding the true nature of the membership programs, including the
nature and quality of the Leads and that the HSPs would be signed up and charged for
including knowingly making false and misleading statements and/or omitting material
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information of the true nature of the membership programs, including the nature and quality of
the Leads and the charges associated with mHelpDesk and that they did not contain the qualities
foregoing from Plaintiff Haukenes and the Idaho Class; and/or HomeAdvisor and ANGI made
incomplete representations about the Leads while purposefully withholding and omitting
material facts from and the Class that contradicted these representations.
were likely to and did in fact deceive reasonable consumers, including Plaintiff Haukenes.
432. As a result of its violations of the ICPA detailed above, HomeAdvisor and ANGI
practices are so egregious and carried out with such willful and conscious disregard of the rights
of its customers that its sales conduct would outrage or offend the public conscience, and is
therefore an unconscionable method, act or practice under the ICPA as provided in Idaho Civil
Code § 48-603C.
434. Plaintiff Haukenes seeks punitive damages against HomeAdvisor and ANGI
because their violations were repeated and flagrant, conducted over the course of many years,
with knowledge of the illegality of the conduct, and therefore warrants the imposition of punitive
435. Plaintiff Haukenes further seeks an order enjoining HomeAdvisor’s and ANGI’s
unfair or deceptive acts or practices, punitive damages, costs of Court, attorney’s fees under
Idaho Civil Code § 48-608, and any other just and proper relief available under the ICPA.
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COUNT XVIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Haukenes and the Idaho Class)
436. Plaintiff Haukenes repeats, realleges, and incorporates by reference each of the
438. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
439. HomeAdvisor and ANGI concealed and made misrepresentations of material facts
concerning the nature of the membership programs, including the nature and quality of the Leads
– namely that the Leads were not from serious, project-ready homeowners and were sent to more
than four HSPs – and the inclusion of the mHelpDesk in the membership programs and the
monthly fees charged for mHelpDesk. Specifically, HomeAdvisor and ANGI knew (or should
have known) that the membership programs were not of the nature that was advertised, including
the nature and quality of the Leads and that mHelpDesk was included in the membership
programs for an additional monthly fee. HomeAdvisor and ANGI concealed material facts
and/or made the material misrepresentations in order to boost the sales of membership programs
and Leads.
440. HomeAdvisor and ANGI knew that Plaintiff Haukenes and Idaho Class Members
relied upon such material representations about the Leads, and HomeAdvisor omitted material
information and/or made such material representations to induce Plaintiff Haukenes and
members of the Idaho Class to act, i.e. to pay for a membership program to get access to the
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Leads. Moreover, to pay for the Leads, the HSPs were required to provide either a
checking/savings account from which HomeAdvisor and ANGI can automatically debit all
membership fees and Lead fees, or a credit card on which HomeAdvisor can automatically
charge such fees. Then, on a weekly basis, HomeAdvisor and ANGI automatically charged the
HSPs for each Lead sent. The fee for each Lead is automatically charged to the HSPs’ credit
cards and/or debited from his/her/its debit accounts. Consequently, the viability, accuracy,
seriousness, qualified nature and limited distribution of each Lead are material to the HSPs.
441. The representations about the Leads and the omissions about the Leads were
material to Plaintiff Haukenes, such that, had Plaintiff Haukenes known that the representations
were false and HomeAdvisor had omitted material information, Plaintiff Haukenes would not
have purchased a Membership Program and provided HomeAdvisor with the means to charge
their credit card and/or debit their bank accounts. But Plaintiff Haukenes and the Idaho Class did
not know the true facts, and relied upon the material representations and omissions made by
442. Plaintiff Haukenes and the members of the Idaho Class had no way of knowing
that HomeAdvisor’s and ANGI’s representations were false and gravely misleading, or that
HomeAdvisor and ANGI had omitted imperative details. Plaintiff Haukenes and the members of
the Idaho Class did not, and could not, unravel HomeAdvisor’s and ANGI’s deception on their
own.
443. HomeAdvisor and ANGI knew their statements were false, and intended that
Plaintiff Haukenes and the members of the Idaho Class would rely upon the false
representations.
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444. HomeAdvisor and ANGI concealed and failed to disclose to Plaintiff Haukenes
and members of the Idaho Class that, despite their affirmative representations about the
membership programs, including the Leads, they would charge Plaintiff Haukenes and the
members of the Idaho Class for unqualified Leads and mHelpDesk. HomeAdvisor and ANGI
concealed these material facts with the intention that Plaintiff Haukenes and the members of the
omissions, Plaintiff Haukenes and the members of the Idaho Class were induced into the
purchase of goods and/or services that they otherwise would not have purchased, or would have
paid less, and have suffered injury, harm and damages as described herein.
deliberately, with intent to defraud, and in reckless disregard of Plaintiff Haukenes’ and the
Idaho Class’ rights and well-being to enrich HomeAdvisor and ANGI. HomeAdvisor’s and
COUNT XIX
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Haukenes and the Idaho Class)
447. Plaintiffs Haukenes repeats, realleges, and incorporates by reference each of the
448. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
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Haukenes and the Idaho Class, as alleged herein. IAC’s conduct alleged herein enabled,
substantially assisted, encouraged, and was a substantial factor in the commission of such fraud.
450. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware that HomeAdvisor and ANGI concealed and made misrepresentations of material
facts concerning the nature of the membership programs, including the nature and quality of the
Leads – namely that the Leads were not from serious, project-ready homeowners and were sent
to more than four HSPs – and the inclusion of the mHelpDesk in the membership programs and
the monthly fees charged for mHelpDesk. Specifically, IAC knew (or should have known) that
the membership programs were not of the nature that HomeAdvisor and ANGI advertised,
including the nature and quality of the Leads and that mHelpDesk was included in the
Membership Programs for an additional monthly fee. IAC aided and abetted HomeAdvisor’s
and ANGI’s concealment of material facts and/or material misrepresentations in order to boost
451. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware Plaintiff Haukenes and Idaho Class Members relied upon such material
representations about the Leads, and HomeAdvisor and ANGI omitted material information
and/or made such material representations to induce Plaintiffs and members of the Idaho Class to
act, i.e. to pay for a Membership Program to get access to the Leads. Moreover, to pay for the
Leads, the HSPs were required to provide either a checking/savings account from which
HomeAdvisor and ANGI can automatically debit all Membership Fees and Lead fees, or a credit
card on which HomeAdvisor can automatically charge such fees. Then, on a weekly basis,
HomeAdvisor and ANGI automatically charged the HSPs for each Lead sent. The fee for each
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Lead is automatically charged to the HSPs’ credit cards and/or debited from his/her/its debit
accounts. Consequently, IAC knew, or was aware, that the viability, accuracy, seriousness,
qualified nature and limited distribution of each Lead are material to the HSPs.
452. As a result of its control over HomeAdvisor’s business operations, IAC had actual
knowledge, or should have known, of measures it could have taken to prevent HomeAdvisor and
ANGI from utilizing fraudulent misrepresentations and ommissions to sell Memberships and
Leads and to provide HSPs with accurate information but nevertheless chose to maintain policies
453. Before and during the commission of the fraud, IAC intended to aid and abet, and
did substantially assist, HomeAdvisor and ANGI in the fraud perpetrated on Plaintiff Haukenes
and the Idaho Class by making statements about the quality of the Leads in regulatory filings and
concealing material information about the quality and nature of the Leads.
454. IAC’s acts were done maliciously, oppressively, deliberately, with intent to
defraud, and in reckless disregard of Plaintiff Haukenes' and the Idaho Class’ rights and well-
COUNT XX
Breach Of Implied Contract
(On Behalf of Plaintiff Haukenes and the Idaho Class)
455. Plaintiff Haukenes repeats, realleges and incorporates by reference each of the
457. Plaintiff Haukenes and the members of the Idaho Class paid money to
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458. An implied contract was created between HomeAdvisor and the HSPs whereby
HomeAdvisor was to send and charge Plaintiff Haukenes and HSPs for Leads that were from
459. The Plaintiff Haukenes and the members of the Idaho Class paid an annual fee to
join a HomeAdvisor membership program and paid hundreds and thousands of dollars for Leads.
460. The Leads, as well as HomeAdvisor’s Lead generation process, however, are
systemically flawed and HomeAdvisor does not and cannot generate Leads of targeted, serious,
461. The Leads were not of the nature and quality of the Leads that were required, yet
HomeAdvisor sent to and charged the HSPs for such Leads. HomeAdvisor did not generate
Leads for the Home Services Professionals that were targeted and from serious, qualified or
project-ready homeowners. Also, HomeAdvisor charged Plaintiff Haukenes and the members of
the Idaho Class for Leads that have been sent to more than four HSPs. HomeAdvisor also
charged HSPs for mHelpDesk without knowledge or consent of the HSPs. Furthermore,
HomeAdvisor systemically disregarded the parameters and limits placed on the type and number
of Leads to be charged to HSPs. Finally, HomeAdvisor employed tactics that prevent HSPs
from canceling their membership and Leads, and from disputing the propriety of a Lead in order
to secure a refund.
462. Accordingly, HomeAdvisor has breached the implied contract that was formed
463. As a result, Plaintiff Haukenes and members of the Idaho Class have been harmed
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and/or injured have incurred economic damages as a proximate and direct result of the breach by
HomeAdvisor.
COUNT XXI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Haukenes and the Idaho Class)
464. Plaintiff Haukenes repeats, realleges and incorporates by reference each of the
466. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
467. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
468. As the intended and expected result of their conscious wrongdoing HomeAdvisor,
ANGI and IAC have profited and benefited from Plaintiff Haukenes and the Idaho Class’
purchase of the membership programs and payment for the Leads and mHelpDesk.
469. HomeAdvisor, ANGI and IAC have voluntarily accepted and retained these
profits and benefits, with full knowledge and awareness that, as a result of HomeAdvisor’s,
ANGI’s and IAC’s misconduct alleged herein, Plaintiff Haukenes and the Idaho Class were not
receiving services of the quality, nature, fitness, or value that had been represented by
470. HomeAdvisor, ANGI and IAC have been unjustly enriched by their fraudulent
and deceptive conduct and withholding of benefits to Plaintiff Haukenes and the Idaho Class, at
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471. Equity and good conscience militate against permitting HomeAdvisor, ANGI and
IAC to retain these profits and benefits, and permitting HomeAdvisor, ANGI and IAC to do so
misrepresentations and misconduct against Plaintiff Haukenes and members of the Idaho Class,
as alleged herein.
472. Because HomeAdvisor, ANGI and IAC retention of the non-gratuitous benefit
conferred upon it by Plaintiff Haukenes and the members of the Idaho Class is unjust and
inequitable, HomeAdvisor, ANGI and IAC must pay restitution to Plaintiff Haukenes and
Illinois
COUNT XXII
Violations Of The Illinois Uniform Deceptive
Trade Practices Act (“Illinois DTPA”)
815 Ill. Comp. Stat. §§ 510/1, et seq.
(On Behalf of Plaintiff Filipiak and the Illinois Class)
473. Plaintiff Filipiak repeats and realleges the allegations above as if fully set forth
herein.
475. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
476. This claim is brought on behalf of Plaintiff Filipiak and the Illinois Class.
477. The Illinois DTPA prohibits deceptive trade practices, including among others,
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(c) Representing that goods or services are of a particular standard, quality, or grade
(d) Advertising goods or services with intent not to sell them as advertised; and
(e) Engaging in any other conduct which similarly creates a likelihood of confusion
or misunderstanding.
478. HomeAdvisor and ANGI are a “person” as defined in 815 Ill. Comp. Stat. §
510/1(5).
or willfully concealed, suppressed or failed to disclose material facts from Plaintiff Filipiak and
the members of the Illinois Class and by making affirmative misrepresentations in order to
induce Plaintiff Filipiak and members of the Illinois Class to pay for a Membership Program to
get access to the Leads. Accordingly, HomeAdvisor and ANGI engaged in deceptive trade
practices as defined in 815 Ill. Comp. Stat. § 510/2, including representing that the Leads have
characteristics, uses, benefits, and qualities which they do not have; representing that the Leads
are of a particular standard and quality when they are not; advertising the Leads with the intent
not to sell them as advertised; and otherwise engaging in conduct likely to deceive.
480. HomeAdvisor and ANGI intended for Plaintiff Filipiak and the other Illinois
Class members to rely on its aforementioned unfair and deceptive acts and practices, including
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481. HomeAdvisor’s and ANGI actions as set forth above occurred in the conduct of
trade or commerce.
482. HomeAdvisor and ANGI knew or should have known that its conduct violated
483. HomeAdvisor and ANGI owed Plaintiff a duty to disclose the true nature of the
membership programs, including the nature and quality of the Leads and that the HSPs would be
signed up and charged for mHelpDesk because HomeAdvisor and ANGI possessed exclusive
knowledge of the true nature of the membership programs, including the quality of the quality of
the Leads and the charges associated with mHelpDesk and that they did not contain the qualities
foregoing from Plaintiff Filipiak and the Illinois Class; and/or HomeAdvisor and ANGI made
incomplete representations about the Leads while purposefully withholding and omitting
material facts from and the Class that contradicted these representations.
485. Plaintiff and the Illinois Class suffered ascertainable loss caused by
HomeAdvisor’s and ANGI’s concealment of and failure to disclose material information. Class
members who purchased a Membership Program or Leads either would have paid less for the
Membership Program or Leads or would not have purchased a Membership Program or Leads at
all but for HomeAdvisor’s and ANGI’s violations of the Illinois DTPA.
486. HomeAdvisor and ANGI had an ongoing duty to consumers to refrain from
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unfair and deceptive acts and practices under the Illinois DTPA. All HSPs who signed up for a
HomeAdvisor’s and ANGI’s deceptive and unfair acts and practices made in the course of
HomeAdvisor’s business.
487. HomeAdvisor’s and ANGI’s conduct alleged herein proximately caused injuries
488. Plaintiff Filipiak and the other Illinois Class members were injured as a result of
HomeAdvisor’s and ANGI’s conduct in that Plaintiff Filipiak and the other Class members
overpaid for a Membership Program or Leads and did not receive the benefit of their bargain.
These injuries are the direct and natural consequence of HomeAdvisor’s and ANGI’s omissions
489. Pursuant to 815 Ill. Comp. Stat. § 510/3, Plaintiff and the Class are entitled to an
award of injunctive relief to prevent HomeAdvisor’s and ANGI’s deceptive trade practices and,
because HomeAdvisor’s and ANGI’s conduct was willful, an award of reasonable attorneys’
fees.
COUNT XXIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Filipiak and the Illinois Class)
490. Plaintiff Filipiak repeats, realleges, and incorporates by reference each of the
492. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
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493. HomeAdvisor and ANGI concealed and made misrepresentations of material facts
concerning the nature of the membership programs, including the nature and quality of the Leads
– namely that the Leads were not from serious, project-ready homeowners and were sent to more
than four HSPs – and the inclusion of the mHelpDesk in the membership programs and the
monthly fees charged for mHelpDesk. Specifically, HomeAdvisor and ANGI knew (or should
have known) that the membership programs, were not of the nature that was advertised,
including the nature and quality of the Leads and that mHelpDesk was included in the
membership programs for an additional monthly fee. HomeAdvisor and ANGI concealed
material facts and/or made the material misrepresentations in order to boost the sales of
494. HomeAdvisor and ANGI knew that Plaintiff Filipiak and Illinois Class Members
relied upon such material representations about the Leads, and HomeAdvisor and ANGI omitted
material information and/or made such material representations to induce Plaintiff Filipiak and
members of the Illinois Class to act, i.e. to pay for a membership program to get access to the
Leads. Moreover, to pay for the Leads, the HSPs were required to provide either a
checking/savings account from which HomeAdvisor and ANGI can automatically debit all
Membership Fees and Lead fees, or a credit card on which HomeAdvisor and ANGI can
automatically charge such fees. Then, on a weekly basis, HomeAdvisor and ANGI
automatically charged the HSPs for each Lead sent. The fee for each Lead is automatically
charged to the HSPs’ credit cards and/or debited from his/her/its debit accounts. Consequently,
the viability, accuracy, seriousness, qualified nature and limited distribution of each Lead are
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495. The representations about the Leads and the omissions about the Leads were
material to Plaintiff Filipiak and the Illinois Class, such that, had Plaintiff Filipiak and the
Illinois Class known that the representations were false and HomeAdvisor had omitted material
information, Plaintiff Filipiak and the Illinois Class would not have purchased a Membership
Program and provided HomeAdvisor with the means to charge their credit card and/or debit their
bank accounts. But Plaintiff Filipiak and the Illinois Class did not know the true facts, and relied
496. Plaintiff Filipiak and the members of the Illinois Class had no way of knowing
that HomeAdvisor’s and ANGI’s representations were false and gravely misleading, or that
HomeAdvisor and ANGI had omitted imperative details. Plaintiff Filipiak and the members of
the Illinois Class did not, and could not, unravel HomeAdvisor’s and ANGI’s deception on their
own.
497. HomeAdvisor and ANGI knew their statements were false, and intended that
Plaintiff Filipiak and the members of the Illinois Class would rely upon the false representations.
498. HomeAdvisor and ANGI concealed and failed to disclose to Plaintiff Filipiak and
members of the Illinois Class that, despite their affirmative representations about the
membership programs, including the Leads, they would charge Plaintiff Filipiak and the
members of the Illinois Class for unqualified Leads and mHelpDesk. HomeAdvisor and ANGI
concealed these material facts with the intention that Plaintiff Filipiak and the members of the
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omissions, Plaintiff Filipiak and the members of the Illinois Class were induced into the purchase
of goods and/or services that they otherwise would not have purchased, or would have paid less,
deliberately, with intent to defraud, and in reckless disregard of Plaintiff Filipiak’ and the Illinois
Class’ rights and well-being to enrich HomeAdvisor and ANGI. HomeAdvisor’s and ANGI’s
COUNT XXIV
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Filipiak and the Illinois Class)
501. Plaintiffs Filipiak repeats, realleges, and incorporates by reference each of the
502. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
503. HomeAdvisor and ANGI committed fraud resulting in injury to Plaintiff Filipiak
and the Illinois Class, as alleged herein. IAC’s conduct alleged herein enabled, substantially
assisted, encouraged, and was a substantial factor in the commission of such fraud.
504. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware that HomeAdvisor and ANGI concealed and made misrepresentations of material
facts concerning the nature and quality of the membership programs, including the nature and
quality of the Leads – namely that the Leads were not from serious, project-ready homeowners
and were sent to more than four HSPs – and the inclusion of the mHelpDesk in the membership
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programs and the monthly fees charged for mHelpDesk. Specifically, IAC knew (or should have
known) that the membership programs were not of the nature that HomeAdvisor and ANGI
advertised, including the nature and quality of the Leads and that mHelpDesk was included in the
membership programs for an additional monthly fee. IAC aided and abetted HomeAdvisor’s and
ANGI’s concealment of material facts and/or material misrepresentations in order to boost the
505. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware Plaintiff Filipiak and the Illinois Class Members relied upon such material
representations about the Leads, and HomeAdvisor and ANGI omitted material information
and/or made such material representations to induce Plaintiffs and members of the Illinois Class
to act, i.e. to pay for a membership program to get access to the Leads. Moreover, to pay for the
Leads, the HSPs were required to provide either a checking/savings account from which
HomeAdvisor and ANGI can automatically debit all Membership Fees and Lead fees, or a credit
card on which HomeAdvisor can automatically charge such fees. Then, on a weekly basis,
HomeAdvisor and ANGI automatically charged the HSPs for each Lead sent. The fee for each
Lead is automatically charged to the HSPs’ credit cards and/or debited from his/her/its debit
accounts. Consequently, IAC knew, or was aware, that the viability, accuracy, seriousness,
qualified nature and limited distribution of each Lead are material to the HSPs.
506. As a result of its control over HomeAdvisor’s business operations, IAC had actual
knowledge, or should have known, of measures it could have taken to prevent HomeAdvisor and
ANGI from utilizing fraudulent misrepresentations and ommissions to sell Memberships and
Leads and to provide HSPs with accurate information but nevertheless chose to maintain policies
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507. Before and during the commission of the fraud, IAC intended to aid and abet, and
did substantially assist, HomeAdvisor and ANGI in the fraud perpetrated on Plaintiff Filipiak
and the Illinois Class by making statements about the quality of the Leads in regulatory filings
and concealing material information about the quality and nature of the Leads.
508. IAC’s acts were done maliciously, oppressively, deliberately, with intent to
defraud, and in reckless disregard of Plaintiff Filipiak’s and the Illinois Class’ rights and well-
COUNT XXV
Breach Of Implied Contract
(On Behalf of Plaintiff Filipiak and the Illinois Class)
509. Plaintiff Filipiak repeats, realleges and incorporates by reference each of the
511. Plaintiff Filipiak and the members of the Illinois Class paid money to
512. An implied contract was created between HomeAdvisor and the HSPs whereby
HomeAdvisor was to send and charge Plaintiff Filipiak and HSPs for Leads that were from
513. The Plaintiff Filipiak and the members of the Illinois Class paid an annual fee to
join a HomeAdvisor Membership Program and paid hundreds and thousands of dollars for
Leads.
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514. The Leads, as well as HomeAdvisor’s Lead generation process, however, are
systemically flawed and HomeAdvisor does not and cannot generate Leads of targeted, serious,
515. The Leads were not of the nature and quality of the Leads that were required, yet
HomeAdvisor sent to and charged the HSPs for such Leads. HomeAdvisor did not generate
Leads for the Home Services Professionals that were targeted and from serious, qualified or
project-ready homeowners. Also, HomeAdvisor charged Plaintiff Filipiak and the members of
the Illinois Class for Leads that have been sent to more than four HSPs. HomeAdvisor also
charged HSPs for mHelpDesk without knowledge or consent of the HSPs. Furthermore,
HomeAdvisor systemically disregarded the parameters and limits placed on the type and number
of Leads to be charged to HSPs. Finally, HomeAdvisor employed tactics that prevent HSPs
from canceling their membership and Leads, and from disputing the propriety of a Lead in order
to secure a refund.
516. Accordingly, HomeAdvisor has breached the implied contract that was formed
517. As a result, Plaintiff Filipiak and members of the Illinois Class have been harmed
and/or injured have incurred economic damages as a proximate and direct result of the breach by
HomeAdvisor.
COUNT XXVI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Filipiak and the Illinois Class)
518. Plaintiff Filipiak repeats, realleges and incorporates by reference each of the
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520. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
521. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
HomeAdvisor, ANGI and IAC have profited and benefited from Plaintiff Filipiak and the Illinois
Class’ purchase of the membership programs and payment for the Leads and mHelpDesk.
523. HomeAdvisor, ANGI and IAC have voluntarily accepted and retained these
profits and benefits, with full knowledge and awareness that, as a result of HomeAdvisor’s,
ANGI’s and IAC’s misconduct alleged herein, Plaintiff Filipiak and the Illinois Class were not
receiving services of the quality, nature, fitness, or value that had been represented by
524. HomeAdvisor, ANGI and IAC have been unjustly enriched by their fraudulent
and deceptive conduct and withholding of benefits to Plaintiff Filipiak and the Illinois Class, at
525. Equity and good conscience militate against permitting HomeAdvisor, ANGI and
IAC to retain these profits and benefits, and permitting HomeAdvisor, ANGI and IAC to do so
misrepresentations and misconduct against Plaintiff Filipiak and members of the Illinois Class,
as alleged herein.
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benefit conferred upon it by Plaintiff Filipiak and the members of the Illinois Class is unjust and
inequitable, HomeAdvisor, ANGI and IAC must pay restitution to Plaintiff Filipiak and members
New Jersey
COUNT XXVII
Violations Of The New Jersey Consumer Fraud Act
N.J.S.A. §§ 56:8-1, et seq. (“NJCFA”)
(On Behalf of Plaintiff Costello and the New Jersey Class)
529. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
530. Plaintiff Costello bring this Count on behalf of New Jersey Class members.
531. The NJCFA prohibits the use or employment of any deception, fraud, false
omission of any material fact with the intent that others rely upon such concealment, suppression
532. HomeAdvisor and ANGI violated the NJCFA by, at minimum employing
material fact with intent that others rely upon such concealment, suppression or omission, in
connection with the sale or advertisement of the Membership Programs and Leads.
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533. In advertising and selling the Membership Programs containing the bogus Leads,
falsely representing the quality and nature of the Leads; failing to disclose the cost of MHelp
Desk; and misrepresenting the availability of refunds and/or credits HomeAdvisor and ANGI
534. HomeAdvisor’s and ANGI’s actions as set forth above occurred in the conduct of
trade or commerce.
535. HomeAdvisor’s and ANGI’s unfair or deceptive acts or practices were likely to
and did in fact deceive Plaintiff Costello and the New Jersey Class.
536. HomeAdvisor and ANGI intentionally and knowingly omitted material facts
regarding the Membership Programs and Leads with an intent to mislead Plaintiff Costello and
537. HomeAdvisor and ANGI knew or should have known that its conduct violated the
NJCFA.
538. HomeAdvisor and ANGI owed Plaintiff Costello and the New Jersey Class a duty
to disclose the truth about the Membership Programs and quality of the Leads because
HomeAdvisor:
b. Intentionally concealed the foregoing from Plaintiff Costello and the New
Leads, while purposefully withholding material facts from Plaintiff Costello and
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the New Jersey Class including with respect to the nature and quality of the
Leads.
Costello and the other Class members. Plaintiff Costello and the other New Jersey Class
members were injured and suffered ascertainable loss, injury-in-fact, and/or actual damage as a
proximate result of HomeAdvisor’s and ANGI’s conduct in that Plaintiff Costello and the other
New Jersey Class members overpaid for their Membership Programs and Leads and did not
receive the benefit of their bargain. These injuries are the direct and natural consequence of
Costello as well as to the general public. HomeAdvisor’s and ANGI’s unlawful acts and
541. Pursuant to N.J.S.A. § 56:8-20, Plaintiffs will serve the New Jersey Attorney
COUNT XXVIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Costello and the New Jersey Class)
542. Plaintiff Costello repeats, realleges, and incorporates by reference each of the
544. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
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545. HomeAdvisor and ANGI concealed and made misrepresentations of material facts
concerning the nature of the membership programs, including the nature and quality of the Leads
– namely that the Leads were not from serious, project-ready homeowners and were sent to more
than four HSPs – and the inclusion of the mHelpDesk in the membership programs and the
monthly fees charged for mHelpDesk. Specifically, HomeAdvisor and ANGI knew (or should
have known) that the membership programs were not of the nature that was advertised, including
the nature and quality of the Leads and that mHelpDesk was included in the membership
programs for an additional monthly fee. HomeAdvisor and ANGI concealed material facts
and/or made the material misrepresentations in order to boost the sales of membership programs
and Leads.
546. HomeAdvisor and ANGI knew that Plaintiff Costello and New Jersey Class
Members relied upon such material representations about the Leads, and HomeAdvisor and
ANGI omitted material information and/or made such material representations to induce Plaintiff
Costello and members of the New Jersey Class to act, i.e. to pay for a Membership Program to
get access to the Leads. Moreover, to pay for the Leads, the HSPs were required to provide
either a checking/savings account from which HomeAdvisor and ANGI can automatically debit
all Membership Fees and Lead fees, or a credit card on which HomeAdvisor and ANGI can
automatically charge such fees. Then, on a weekly basis, HomeAdvisor and ANGI
automatically charged the HSPs for each Lead sent. The fee for each Lead is automatically
charged to the HSPs’ credit cards and/or debited from his/her/its debit accounts. Consequently,
the viability, accuracy, seriousness, qualified nature and limited distribution of each Lead are
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547. The representations about the Leads and the omissions about the Leads were
material to Plaintiff Costello, such that, had Plaintiff Costello known that the representations
were false and HomeAdvisor and ANGI had omitted material information, Plaintiff Costello
would not have purchased a Membership Program and provided HomeAdvisor and ANGI with
the means to charge their credit card and/or debit their bank accounts. But Plaintiff Costello and
the New Jersey Class did not know the true facts, and relied upon the material representations
548. Plaintiff Costello and the members of the New Jersey Class had no way of
knowing that HomeAdvisor’s and ANGI’s representations were false and gravely misleading, or
that HomeAdvisor and ANGI had omitted imperative details. Plaintiff Costello and the members
of the New Jersey Class did not, and could not, unravel HomeAdvisor’s deception on their own.
549. HomeAdvisor and ANGI knew their statements were false, and intended that
Plaintiff Costello and the members of the Classes would rely upon the false representations.
550. HomeAdvisor and ANGI concealed and failed to disclose to Plaintiff Costello and
members of the New Jersey Class that, despite their affirmative representations about the
membership programs, including the Leads, they would charge Plaintiff Costello and the
members of the New Jersey Class for unqualified Leads and mHelpDesk. HomeAdvisor and
ANGI concealed these material facts with the intention that Plaintiff Costello and the members
omissions, Plaintiff Costello and the members of the New Jersey Class were induced into the
purchase of goods and/or services that they otherwise would not have purchased, or would have
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paid less, and have suffered injury, harm and damages as described herein.
deliberately, with intent to defraud, and in reckless disregard of Plaintiff Costello’s and the New
Jersey Class’ rights and well-being to enrich HomeAdvisor and ANGI. HomeAdvisor’s and
COUNT XXIX
Aiding and Abetting Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Costello and the New Jersey Class)
553. Plaintiffs Costello repeats, realleges, and incorporates by reference each of the
554. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
555. HomeAdvisor and ANGI committed fraud resulting in injury to Plaintiff Costello
and the New Jersey Class, as alleged herein. IAC’s conduct alleged herein enabled, substantially
assisted, encouraged, and was a substantial factor in the commission of such fraud.
556. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware that HomeAdvisor and ANGI concealed and made misrepresentations of material
facts concerning the nature of the membership programs, including the nature and quality of the
Leads – namely that the Leads were not from serious, project-ready homeowners and were sent
to more than four HSPs – and the inclusion of the mHelpDesk in the Membership Programs and
the monthly fees charged for mHelpDesk. Specifically, IAC knew (or should have known) that
the membership programs were not of the nature that HomeAdvisor and ANGI advertised,
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including the nature and quality of the Leads and that mHelpDesk was included in the
Membership Programs for an additional monthly fee. IAC aided and abetted HomeAdvisor’s
and ANGI’s concealment of material facts and/or material misrepresentations in order to boost
557. As a result of its control over HomeAdvisor’s business operations, IAC knew or
was aware Plaintiff Costello and the New Jersey Class Members relied upon such material
representations about the Leads, and HomeAdvisor and ANGI omitted material information
and/or made such material representations to induce Plaintiffs and members of the New Jersey
Class to act, i.e. to pay for a Membership Program to get access to the Leads. Moreover, to pay
for the Leads, the HSPs were required to provide either a checking/savings account from which
HomeAdvisor and ANGI can automatically debit all Membership Fees and Lead fees, or a credit
card on which HomeAdvisor can automatically charge such fees. Then, on a weekly basis,
HomeAdvisor and ANGI automatically charged the HSPs for each Lead sent. The fee for each
Lead is automatically charged to the HSPs’ credit cards and/or debited from his/her/its debit
accounts. Consequently, IAC knew, or was aware, that the viability, accuracy, seriousness,
qualified nature and limited distribution of each Lead are material to the HSPs.
558. As a result of its control over HomeAdvisor’s business operations, IAC had actual
knowledge, or should have known, of measures it could have taken to prevent HomeAdvisor and
ANGI from utilizing fraudulent misrepresentations and ommissions to sell Memberships and
Leads and to provide HSPs with accurate information but nevertheless chose to maintain policies
559. Before and during the commission of the fraud, IAC intended to aid and abet, and
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did substantially assist, HomeAdvisor and ANGI in the fraud perpetrated on Plaintiff Costello
and the New Jersey Class by making statements about the quality of the Leads in regulatory
filings and concealing material information about the quality and nature of the Leads.
560. IAC’s acts were done maliciously, oppressively, deliberately, with intent to
defraud, and in reckless disregard of Plaintiff Costello’s and the New Jersey Class’ rights and
COUNT XXX
Breach Of Implied Contract
(On Behalf of Plaintiff Costello and the New Jersey Class)
561. Plaintiff Costello repeats, realleges and incorporates by reference each of the
563. Plaintiff Costello and the members of the New Jersey Class paid money to
564. An implied contract was created between HomeAdvisor and the HSPs whereby
HomeAdvisor was to send and charge Plaintiff Costello and HSPs for Leads that were from
565. The Plaintiff Costello and the members of the New Jersey Class paid an annual
fee to join a HomeAdvisor Membership Program and paid hundreds and thousands of dollars for
Leads.
566. The Leads, as well as HomeAdvisor’s Lead generation process, however, are
systemically flawed and HomeAdvisor does not and cannot generate Leads of targeted, serious,
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567. The Leads were not of the nature and quality of the Leads that were required, yet
HomeAdvisor sent to and charged the HSPs for such Leads. HomeAdvisor did not generate
Leads for the Home Services Professionals that were targeted and from serious, qualified or
project-ready homeowners. Also, HomeAdvisor charged Plaintiff Costello and the members of
the New Jersey Class for Leads that have been sent to more than four HSPs. HomeAdvisor also
charged HSPs for mHelpDesk without knowledge or consent of the HSPs. Furthermore,
HomeAdvisor systemically disregarded the parameters and limits placed on the type and number
of Leads to be charged to HSPs. Finally, HomeAdvisor employed tactics that prevent HSPs
from canceling their membership and Leads, and from disputing the propriety of a Lead in order
to secure a refund.
568. Accordingly, HomeAdvisor has breached the implied contract that was formed
between it and Plaintiff Costello and members of the New Jersey Class.
569. As a result, Plaintiff Costello and members of the New Jersey Class have been
harmed and/or injured have incurred economic damages as a proximate and direct result of the
breach by HomeAdvisor.
COUNT XXXI
Unjust Enrichment/Restitution
(On Behalf of Plaintiff Costello and the New Jersey Class)
570. Plaintiff Costello repeats, realleges and incorporates by reference each of the
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572. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
573. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
HomeAdvisor, ANGI and IAC have profited and benefited from Plaintiff Costello and the New
Jersey Class’ purchase of the membership programs and payment for the Leads and mHelpDesk.
575. HomeAdvisor, ANGI and IAC have voluntarily accepted and retained these
profits and benefits, with full knowledge and awareness that, as a result of HomeAdvisor’s,
ANGI’s and IAC’s misconduct alleged herein, Plaintiff Costello and the New Jersey Class were
not receiving services of the quality, nature, fitness, or value that had been represented by
576. HomeAdvisor, ANGI and IAC have been unjustly enriched by their fraudulent
and deceptive conduct and withholding of benefits to Plaintiff Costello and the New Jersey
577. Equity and good conscience militate against permitting HomeAdvisor, ANGI and
IAC to retain these profits and benefits, and permitting HomeAdvisor, ANGI and IAC to do so
misrepresentations and misconduct against Plaintiff Costello and members of the New Jersey
benefit conferred upon it by Plaintiff Costello and the members of the New Jersey Class is unjust
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and inequitable, HomeAdvisor, ANGI and IAC must pay restitution to Plaintiff Costello and
Ohio
COUNT XXXII
Violations Of The Ohio Deceptive
Trade Practices Act (“Ohio DTPA”)
O.R.C. 4165.01, et seq.
(On Behalf of Plaintiff Baumann and the Ohio Class)
579. Plaintiff Baumann repeats and realleges the allegations above as if fully set forth
herein.
summarized as follows and set forth in greater detail at ¶¶ 5, 19, 36-158, 218-229.
582. This claim is brought on behalf of Plaintiff Baumann and the Ohio Class.
583. The Ohio DTPA prohibits deceptive trade practices, including among others,
(c) Representing that goods or services are of a particular standard, quality, or grade
(d) Advertising goods or services with intent not to sell them as advertised.
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willfully concealed, suppressed or failed to disclose material facts from Plaintiff Baumann and
the members of the Ohio Class and by making affirmative misrepresentations in order to induce
Plaintiff Baumann and members of the Ohio Class to pay for a membership program to get
access to the Leads. Accordingly, HomeAdvisor and ANGI engaged in deceptive trade practices
as defined in O.R.C. § 4165.02, including representing that the Leads have characteristics, uses,
benefits, and qualities which they do not have; representing that the Leads are of a particular
standard and quality when they are not; advertising the Leads with the intent not to sell them as
advertised; failing to disclose the inclusion of or costs associated with mHelpDesk and otherwise
586. HomeAdvisor and ANGI intended for Plaintiff Baumann and the other Ohio
Class members to rely on its aforementioned unfair and deceptive acts and practices, including
587. HomeAdvisor’s and ANGI’s actions as set forth above occurred in the conduct
of trade or commerce.
588. HomeAdvisor and ANGI knew or should have known that its conduct violated
589. HomeAdvisor and ANGI owed Plaintiff Baumann a duty to disclose the true
nature of the membership programs, including the nature and quality of the Leads because
HomeAdvisor and ANGI possessed exclusive knowledge of the true nature and quality of the
membership programs and Leads, and that they did not contain the qualities or characteristics, or
perform, as advertised; HomeAdvisor and ANGI intentionally concealed the foregoing from
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Plaintiff Baumann and the Ohio Class; and/or HomeAdvisor and ANGI made incomplete
representations about the Leads while purposefully withholding and omitting material facts from
591. Plaintiff Baumann and the Ohio Class suffered ascertainable loss caused by
HomeAdvisor’s and ANGI’s concealment of and failure to disclose material information. Class
members who purchased a membership program, including Leads and/or mHelpDesk, either
would have paid less for the membership program or Leads or would not have purchased a
membership program, Leads or mHelpDesk at all but for HomeAdvisor’s and ANGI’s violations
592. HomeAdvisor and ANGI had an ongoing duty to refrain from unfair and
deceptive acts and practices under the Ohio DTPA. All HSPs who signed up for a membership
program and paid for Leads and/or mHelpDesk suffered ascertainable loss as a result of
HomeAdvisor’s and ANGI’s deceptive and unfair acts and practices made in the course of
HomeAdvisor’s business.
593. HomeAdvisor’s and ANGI’s conduct alleged herein proximately caused injuries
594. Plaintiff Baumann and the other Ohio Class members were injured as a result of
HomeAdvisor’s and ANGI’s conduct in that Plaintiff Baumann and the other Class members
overpaid for a membership program, and paid for Leads and/or mHelpDesk and did not receive
the benefit of their bargain. These injuries are the direct and natural consequence of
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595. Pursuant to O.R.C. § 4165.03, Plaintiff Baumann and the Ohio Class are entitled
to an award of injunctive relief to prevent HomeAdvisor’s and ANGI’s deceptive trade practices,
an award of damages and, because HomeAdvisor’s and ANGI’s conduct was willful, an award of
COUNT XXXIII
Fraud/Fraudulent Concealment
(On Behalf of Plaintiff Baumann and the Ohio Class)
596. Plaintiff Baumann repeats, realleges, and incorporates by reference each of the
598. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
599. HomeAdvisor and ANGI concealed and made misrepresentations of material facts
concerning the nature and quality of the Leads – namely that the Leads were not from serious,
project-ready homeowners and were sent to more than four HSPs. Specifically, HomeAdvisor
and ANGI knew (or should have known) that the Leads were not of the nature and quality that
was advertised. HomeAdvisor and ANGI concealed material facts and/or made the material
600. HomeAdvisor and ANGI knew that Plaintiff Ohio and Ohio Class Members relied
upon such material representations about the Leads, and HomeAdvisor and ANGI omitted
material information and/or made such material representations to induce Plaintiff Baumann and
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members of the Ohio Class to act, i.e. to pay for a Membership Program to get access to the
Leads. Moreover, to pay for the Leads, the HSPs were required to provide either a
checking/savings account from which HomeAdvisor and ANGI can automatically debit all
Membership Fees and Lead fees, or a credit card on which HomeAdvisor can automatically
charge such fees. Then, on a weekly basis, HomeAdvisor and ANGI automatically charged the
HSPs for each Lead sent. The fee for each Lead is automatically charged to the HSPs’ credit
cards and/or debited from his/her/its debit accounts. Consequently, the viability, accuracy,
seriousness, qualified nature and limited distribution of each Lead are material to the HSPs.
601. The representations about the Leads and the omissions about the Leads were
material to Plaintiff Baumann, such that, had Plaintiff Baumann known that the representations
were false and HomeAdvisor and ANGI had omitted material information, Plaintiff Baumann
would not have purchased a Membership Program and provided HomeAdvisor and ANGI with
the means to charge their credit card and/or debit their bank accounts. But Plaintiff Baumann
and the Ohio Class did not know the true facts, and relied upon the material representations and
602. Plaintiff Baumann and the members of the Ohio Class had no way of knowing
that HomeAdvisor’s and ANGI’s representations were false and gravely misleading, or that
HomeAdvisor and ANGI had omitted imperative details. Plaintiff Baumann and the members of
the Ohio Class did not, and could not, unravel HomeAdvisor’s and ANGI’s deception on their
own.
603. HomeAdvisor and ANGI knew their statements were false, and intended that
Plaintiff Baumann and the members of the Ohio Class would rely upon the false representations.
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604. HomeAdvisor and ANGI concealed and failed to disclose to Plaintiff Baumann
and members of the Ohio Class that, despite their affirmative representations about the
membership programs, including the nature and quality of the Leads, they would charge Plaintiff
Baumann and the members of the Ohio Class for unqualified Leads and mHelpDesk.
HomeAdvisor and ANGI concealed these material facts with the intention that Plaintiff Baumann
omissions, Plaintiff Baumann and the members of the Ohio Class were induced into the purchase
of goods and/or services that they otherwise would not have purchased, or would have paid less,
deliberately, with intent to defraud, and in reckless disregard of Plaintiff Baumann’ and the Ohio
Class’ rights and well-being to enrich HomeAdvisor and ANGI. HomeAdvisor’s and ANGI’s
COUNT XXXIV
Breach Of Implied Contract
(On Behalf of Plaintiff Baumann and the Ohio Class)
607. Plaintiff Baumann repeat, reallege and incorporate by reference each of the
609. Plaintiff Baumann and the members of the Ohio Class paid money to
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610. An implied contract was created between HomeAdvisor and the HSPs whereby
HomeAdvisor was to send and charge Plaintiff Baumann and HSPs for Leads that were from
611. Plaintiff Baumann and the members of the Ohio Class paid an annual fee to join a
HomeAdvisor Membership Program and paid hundreds and thousands of dollars for Leads.
612. The Leads, as well as HomeAdvisor’s Lead generation process, however, are
systemically flawed and HomeAdvisor does not and cannot generate Leads of targeted, serious,
613. The Leads were not of the nature and quality of the Leads that were required, yet
HomeAdvisor sent to and charged the HSPs for such Leads. HomeAdvisor did not generate
Leads for the Home Services Professionals that were targeted and from serious, qualified or
project-ready homeowners. Also, HomeAdvisor charged Plaintiff Baumann and the members of
the Ohio Class for Leads that have been sent to more than four HSPs. HomeAdvisor also
charged HSPs for mHelpDesk without knowledge or consent of the HSPs. Furthermore,
HomeAdvisor systemically disregarded the parameters and limits placed on the type and number
of Leads to be charged to HSPs. Finally, HomeAdvisor employed tactics that prevent HSPs
from canceling their membership and Leads, and from disputing the propriety of a Lead in order
to secure a refund.
614. Accordingly, HomeAdvisor has breached the implied contract that was formed
615. As a result, Plaintiff Baumann and members of the Ohio Class have been harmed
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and/or injured have incurred economic damages as a proximate and direct result of the breach by
HomeAdvisor.
COUNT XXXV
Unjust Enrichment/Restitution
(On Behalf Of Plaintiff Baumann and the Ohio Class)
616. Plaintiff Baumann repeat, reallege and incorporate by reference each of the
618. IAC is named as a Defendant in this Count by virtue of its conduct summarized as
follows and set forth in greater detail at ¶¶ 18, 38, 102, 206-229.
619. ANGI is named as a Defendant in this Count by virtue of its conduct summarized
HomeAdvisor, ANGI and IAC have profited and benefited from Plaintiff Baumann and the Ohio
Class’ purchase of the membership programs and payment for the Leads and mHelpDesk.
622. HomeAdvisor, ANGI and IAC have voluntarily accepted and retained these
profits and benefits, with full knowledge and awareness that, as a result of HomeAdvisor’s,
ANGI’s and IAC’s misconduct alleged herein, Plaintiff Baumann and the Ohio Class were not
receiving services of the quality, nature, fitness, or value that had been represented by
HomeAdvisor, ANGI and IAC, and that a reasonable consumer would expect.
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623. HomeAdvisor, ANGI and IAC have been unjustly enriched by their fraudulent
and deceptive conduct and withholding of benefits to Plaintiff Baumann and the Ohio Class, at
624. Equity and good conscience militate against permitting HomeAdvisor, ANGI and
IAC to retain these profits and benefits, and permitting HomeAdvisor, ANGI and IAC to do so
misrepresentations and misconduct against Plaintiff Baumann and members of the Ohio Class, as
alleged herein.
benefit conferred upon it by Plaintiff Baumann and the members of the Ohio Class is unjust and
inequitable, HomeAdvisor, ANGI and IAC must pay restitution to Plaintiff Baumann and
Lanham Act
COUNT XXXVI
Violation Of The Lanham Act Section 43(a), 15 U.S.C. § 1125(a)(1)(A)
(False Association and Trademark Infringement)
(On Behalf of the Lanham Act Class)
627. The Lanham Act Defendants are named as Defendants in this Count by acting as
alleged above in ¶¶ 11-15 and 159-204 and by diverting business from HSPs through the
unlawful use of (i) Online Public Profiles, (ii) HomeAdvisor Premier Online Directory, (iii) the
Exclusive Partner Network, (iv) Exact Match Listings, and (v) Website Hijacking.
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628. The Lanham Act Defendants violated section 43(a) of the Lanham Act (15 U.S.C.
thereof, which were likely to cause confusion, mistake or deception as to the affiliation,
connection, or association of the Lanham Act Defendants with the Misappropriation Plaintiffs
and members of the Lanham Act Class, or as to the origin, sponsorship, or approval of their
629. In acting as alleged above, the Lanham Act Defendants also violated section 43(a)
of the Lanham Act (15 U.S.C. § 1125(a)(1)(A)) by using in commerce false designations of
which were likely to cause confusion, mistake, or deception as to the affiliation, connection, or
association of the Lanham Act Defendants with the Misappropriation Plaintiffs and members of
the Class, or as to the origin, sponsorship, or approval of their services or commercial activities.
business reputation of the Lanham Act Plaintiff and members of the Lanham Act Class.
U.S.C. § 1125(a)(1)(A) have also deprived and will continue to deprive the Misappropriation
Plaintiffs and members of the Lanham Act Class of the ability to control the consumer
perception of its products and services offered under their names and marks, placing the valuable
reputation and goodwill of the Misappropriation Plaintiffs and members of the Lanham Act
632. The Lanham Act Defendants had direct and full knowledge of the
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Misappropriation Plaintiffs’ and the Lanham Act Class Members’ prior use of and rights in their
names and marks before the acts complained of herein. The knowing, intentional and willful
nature of the acts set forth herein renders this an exceptional case under 15 U.S.C. § 1117(a).
members of the Lanham Act Class are entitled to recover: (1) the Lanham Act Defendants’
profits, or an amount that is adequate, which the Court finds to be just according to the
circumstances of the case, as compensation; (2) the damages sustained by the Misappropriation
Plaintiffs and the Lanham Act Class Members, in a sum above the amount found as actual
damages, not exceeding three times such amount; (3) the costs of the action; and (4) reasonable
attorney fees.
634. As a result of the Lanham Act Defendants’ aforesaid conduct and in addition to
other damages, the Misappropriation Plaintiffs and the Lanham Act Class Members have
suffered the continuing loss of the goodwill and reputation established by their names and marks.
This continuing loss of goodwill cannot be properly calculated and thus constitutes irreparable
harm and an injury for which the Misappropriation Plaintiffs and the Lanham Act Class
Members have no adequate remedy at law. The Misappropriation Plaintiffs and the Lanham Act
Class Members will continue to suffer irreparable harm unless this Court enjoins the Lanham Act
COUNT XXXVII
Violation Of The Lanham Act, 15 U.S.C. § 1125(a)(1)(B)
(False Advertising and Trademark Infringement)
(On Behalf of the Lanham Act Class)
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636. The Lanham Act Defendants are named as Defendants in this Count by acting as
alleged above in ¶¶ 11-15 and 159-204 and by diverting business from HSPs through the
unlawful use of (i) Online Public Profiles, (ii) HomeAdvisor Premier Online Directory, (iii) the
Exclusive Partner Network, (iv) Exact Match Listings, and (v) Website Hijacking.
637. The Lanham Act Defendants violated section 43(a) of the Lanham Act (15 U.S.C.
characteristics, or qualities of the Misappropriation Plaintiffs’ and the Lanham Act Class
638. In acting as alleged above, the Lanham Act Defendants also violated section 43(a)
of the Lanham Act (15 U.S.C. § 1125(a)(1)(B)) by using in commerce false designations of
qualities of the Misappropriation Plaintiffs’ and the Lanham Acts Class Members’ services or
commercial activities.
business reputation of the Misappropriation Plaintiffs and the Lanham Act Class Members.
U.S.C. § 1125(a)(1)(B) have also deprived and will continue to deprive the Misappropriation
Plaintiffs and the Lanham Act Class Members of the ability to control the consumer perception
of their products and services offered under their names and marks, placing the valuable
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reputation and goodwill of Misappropriation Plaintiffs and the Lanham Act Class Members in
641. The Lanham Act Defendants had direct and full knowledge of the
Misappropriation Plaintiffs’ and the Lanham Act Class Members’ prior use of and rights in their
names and marks before the acts complained of herein. The knowing, intentional and willful
nature of the acts set forth herein renders this an exceptional case under 15 U.S.C. § 1117(a).
the Lanham Act Class Members are entitled to recover: (1) the Lanham Act Defendants’ profits,
or an amount that is just and adequate compensation according to the circumstances of the case;
(2) the damages sustained by the Misappropriation Plaintiffs and the Lanham Act Class
Members, in a sum above the amount found as actual damages, not exceeding three times such
amount; (3) the costs of the action; and (4) reasonable attorney fees should the Court find this to
be an exceptional action.
643. As a result of the Lanham Act Defendants’ aforesaid conduct and in addition to
other damages, the Misappropriation Plaintiffs and the Lanham Act Class Members have
suffered the continuing loss of the goodwill and reputation established by their names and marks.
This continuing loss of goodwill cannot be properly calculated and thus constitutes irreparable
harm and an injury for which the Misappropriation Plaintiffs and the Lanham Act Class
Members have no adequate remedy at law. The Misappropriation Plaintiffs and the Lanham Act
Class Members will continue to suffer irreparable harm unless this Court enjoins the Lanham Act
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Colorado
COUNT XXXVIII
Violations of Colorado Consumer Protection Act ("CCPA"),
Colo. Rev. Stat. § 6-1-101, et seq.
(On Behalf of the McHenry Plaintiffs and the Colorado Misappropriation Class)
644. Plaintiffs Brad and Linda McHenry repeat and reallege the allegations above as if
645. HomeAdvisor and John Doe are named as Defendants in this Count by virtue of
their conduct summarized as follows and set forth in greater detail at ¶¶ 15 and 159-204.
646. Plaintiffs Brad and Linda McHenry bring this claim on behalf of themselves and
647. This cause of action is brought on behalf of Plaintiffs Brad and Linda Mc Henry
and all similarly situated members of the Colorado Misappropriation Class, pursuant to COLO.
REV. STAT. § 6-1-105(a), (b), (c), and (h), which provide, in pertinent part, that “a person
engages in a deceptive trade practice when, in the course of such person’s business, vocation, or
* * *
(a) Knowingly passes off goods, services, or property as those of another;
* * *
(b) Knowingly makes a false representation as to the source, sponsorship, approval, or
certification of goods, services, or property;
* * *
(c) Knowingly makes a false representation as to affiliation, connection, or association
with or certification by another;
* * *
(h) Disparages the goods, services, property, or business of another by false or
misleading representation of fact;
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648. As set forth herein, HomeAdvisor and John Doe engaged in unfair methods of
competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the
a. advertising, promoting or offering services under the McHenry Plaintiff’s and the
McHenry Plaintiffs and the Colorado Misappropriation Class Member's prior use
and John Doe are endorsed by, licensed by, sponsored by, originated with, and/or
HomeAdvisor or John Doe are affiliated with or associated with Plaintiff the
HomeAdvisor and John Doe have no connection with or authorization from the
d. making false and misleading statements about the McHenry Plaintiff’s and the
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649. In addition, C.R.S. § 6-1-105(3) provides: “The deceptive trade practices listed in
this section are in addition to and do not limit the types of unfair trade practices actionable at
650. HomeAdvisor’s and John Doe’s deceptive practices occurred in the course of
651. HomeAdvisor’s and John Doe’s misconduct significantly impacts the public as
misappropriation and false representations through electronic media, internet and direct
marketing were directed to the market generally resulting in deception of actual and prospective
purchasers.
652. HomeAdvisor’s and John Doe’s deceptive practices caused damage to Plaintiffs
Brad and Linda McHenry and all Colorado Misappropriation Class Members. Because of
HomeAdvisor’s unfair, deceptive and fraudulent business practices, Plaintiffs Brad and Linda
McHenry and the Misappropriation Class Members suffered and continue to suffer injuries by
653. Plaintiffs Brad and Linda McHenry therefore seeks an order of this Court:
b. Enjoining HomeAdvisor and John Doe from making false and misleading
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654. Plaintiffs Brad and Linda McHenry and the members of the Colorado
Misappropriation Class may be irreparably harmed and/or denied an effective and complete
remedy if such an order is not granted. The unfair and/or deceptive acts and practices of
HomeAdvisor, as described above, present a serious threat to the McHenry Plaintiffs and the
COUNT XXXIX
Common Law Unfair Competition
(On Behalf of the McHenry Plaintiffs and the Colorado Misappropriation Class)
655. Plaintiffs Brad and Linda McHenry re-allege and incorporate by reference all
656. HomeAdvisor and John Doe are named as Defendants in this Count by virtue of
their conduct summarized as follows and set forth in greater detail at ¶¶ 15 and 159-204.
657. HomeAdvisor and John Doe have advertised, promoted or offered services under
the McHenry Plaintiff’s and the Colorado Misappropriation Class Member's names with full
knowledge of the McHenry Plaintiff’s and the Colorado Misappropriation Class Member's prior
658. HomeAdvisor and John Doe have unfairly competed with the McHenry Plaintiffs
and the Colorado Misappropriation Class Members by creating the impression among relevant
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consumers that the goods or services offered by HomeAdvisor and John Doe are endorsed by,
licensed by, sponsored by, originated with, and/or otherwise affiliated with the McHenry
Plaintiffs and the Colorado Misappropriation Class Members, or that the source of the services
offered by HomeAdvisor and John Doe are affiliated with or associated with the McHenry
Plaintiffs and the Colorado Misappropriation Class Members, when HomeAdvisor and John Doe
have no connection with or authorization from the McHenry’s Plaintiffs or the Colorado
659. HomeAdvisor and John Doe have misappropriated the McHenry Plaintiff’s and
the Colorado Misappropriation Class Member's goodwill and public recognition, and
HomeAdvisor and John Doe have unlawfully benefited from such activities.
660. Continued use by HomeAdvisor and John Doe of the business names of the
McHenry Plaintiffs and the Colorado Misappropriation Class Members with any goods or
661. HomeAdvisor’s and John Doe’s actions have injured the business reputation of
the McHenry Plaintiffs and the Colorado Misappropriation Class Members and will cause
irreparable harm, damage and injury to the McHenry Plaintiffs and the Colorado
Florida
COUNT XL
Violation of the Florida Deceptive and Unfair Trade Practices Act,
Fla. Stat. §501.201, et seq. (“DUTPA”)
(On Behalf of Plaintiffs Ervine and the Florida Misappropriation Class)
662. Plaintiff Ervine repeats and realleges the allegations above as if fully set forth
herein.
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663. Plaintiff Ervine brings this count individually and on behalf of the Florida Class.
664. HomeAdvisor and John Doe are named as Defendants in this Count by virtue of
their conduct summarized as follows and set forth in greater detail at ¶¶ 12 and 159-204.
665. The Florida Deceptive and Unfair Trade Practices Act (“DUTPA”), Fla. Stat. §
501.201, et seq., makes unlawful any “[u]nfair methods of competition, unconscionable acts or
practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce.”
666. As amended by the Florida Legislature in 2001, a “person” who has suffered a
loss as a result of a violation of the Florida Deceptive and Unfair Trade Practices Act
(“FDUTPA”) has standing to sue under that statute. See Fla. Stat. § 501.211(2). This 2001
amendment replaced the word "consumer" with "person.” Plaintiffs and Class members are
667. As set forth herein, HomeAdvisor and John Doe engaged in unfair methods of
competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the
Plaintiff Ervine’s and the Florida Misappropriation Class Member's prior use
consumers that the goods or services offered by HomeAdvisor and John Doe
are endorsed by, licensed by, sponsored by, originated with, and/or otherwise
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Doe are affiliated with or associated with Plaintiff Ervine and the Florida
d. making false and misleading statements about Plaintiff Ervine’s and the
668. Under the FDUTPA, § 501.211(2) and § 501.2105, Plaintiff Ervine and the
Florida Class are entitled to actual damages, injunctive relief and attorney’s fees and costs.
COUNT XLI
Common Law Unfair Competition
(On Behalf of Plaintiff Ervine and the Florida Misappropriation Class)
669. Plaintiff Ervine realleges and incorporates by reference all allegations set forth in
670. HomeAdvisor and John Doe are named as Defendants in this Count by virtue of
their conduct summarized as follows and set forth in greater detail at ¶¶ 12 and 159-204.
671. HomeAdvisor and John Doe have advertised, promoted or offered services under
Plaintiff Ervine’s and the Florida Misappropriation Class Member's names with full knowledge
of Plaintiff Ervine’s and the Florida Misappropriation Class Member's prior use and rights in
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their name.
672. HomeAdvisor has unfairly competed with Plaintiff Ervine and the Florida
Misappropriation Class Members by creating the impression among relevant consumers that the
goods or services offered by HomeAdvisor and John Doe are endorsed by, licensed by,
sponsored by, originated with, and/or otherwise affiliated with Plaintiff Ervine and the Florida
Misappropriation Class Members, or that the source of the services offered by HomeAdvisor or
John Doe are affiliated with or associated with Plaintiff Ervine and the Florida Misappropriation
Class Members, when HomeAdvisor and John Doe have no connection with or authorization
673. HomeAdvisor and John Doe have misappropriated Plaintiff Ervine’s and the
Florida Misappropriation Class Member's goodwill and public recognition, and HomeAdvisor
674. Continued use by HomeAdvisor and John Doe of the business names of Plaintiff
Ervine and the Florida Misappropriation Class Members with any goods or services constitutes
675. HomeAdvisor’s and John Doe’s actions have injured the business reputation of
Plaintiff Ervine and the Florida Misappropriation Class Members and will cause irreparable
harm, damage and injury to Plaintiff Ervine and Florida Misappropriation Class Members unless
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Idaho
COUNT XLII
Violations of the Idaho Consumer Protection Act,
Idaho Civ. Code, § 480, et seq.
(On Behalf of Plaintiff Haukenes and the Idaho Misappropriation Class)
677. HomeAdvisor and John Doe are named as Defendants in this Count by virtue of
their conduct summarized as follows and set forth in greater detail at ¶¶ 14 and 159-204.
678. HomeAdvisor, John Doe and Plaintiff Haukenes are “persons” under Idaho Civil
Code § 48-602(1).
679. HomeAdvisor engaged in unfair methods and practices in the conduct of its trade
or commerce in violation of the Idaho Consumer Protection Act (“ICPA”), Idaho Civ. Code
§ 48-603, including:
ingredients, uses, benefits, or quantities that they do not have or that a person has
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ingredients, uses, benefits, or quantities that they do not have or that a person has
representation of fact.
680. As set forth herein, HomeAdvisor and John Doe engaged in unfair methods of
competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the
Haukenes’ and the Idaho Misappropriation Class Member's prior use and rights in
their name;
b. unfairly competing with Plaintiff Haukenes’ and the Idaho Misappropriation Class
Members by creating the impression among and confusing relevant consumers that
the goods or services offered by HomeAdvisor and John Doe are endorsed by,
licensed by, sponsored by, originated with, and/or otherwise affiliated with
Plaintiff Haukenes’ and the Idaho Misappropriation Class Members, or that the
source of the services offered by HomeAdvisor or John Doe are affiliated with or
Members;
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d. making false and misleading statements about Plaintiff Haukenes’ and the Idaho
681. As a result of its violations of the ICPA detailed above, HomeAdvisor caused
actual damage and ascertainable loss to Plaintiff Haukenes and the Idaho Misappropriation
Class.
misappropriation, disparaging and fraudulent statements and unfair competition was so egregious
and carried out with such willful and conscious disregard of the rights of its customers that its
sales conduct would outrage or offend the public conscience, and is therefore an unconscionable
method, act or practice under the ICPA as provided in Idaho Civil Code § 48-603C.
683. Plaintiff Haukenes seeks punitive damages against HomeAdvisor and John Doe
because their violations were repeated and flagrant, conducted with knowledge of the illegality
of the conduct, and therefore warrants the imposition of punitive damages under Idaho Civil
Code § 48-608(1).
684. Plaintiff Haukenes further seeks an order enjoining HomeAdvisor’s and John
Doe’s unfair or deceptive acts or practices, punitive damages, costs of Court, attorney’s fees
under Idaho Civil Code § 48-608, and any other just and proper relief available under the ICPA.
190
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New York
COUNT XLIII
Common Law Unfair Competition
(On Behalf of Plaintiff Hass and the New York Misappropriation Class)
685. Plaintiff Hass re-alleges and incorporates by reference all allegations set forth in
686. HomeAdvisor and John Doe are named as Defendants in this Count by virtue of
their conduct summarized as follows and set forth in greater detail at ¶¶ 13 and 159-204.
687. HomeAdvisor and John Doe #1 have advertised, promoted or offered services
under Plaintiff Hass’s and the New York Misappropriation Class Member's names with full
knowledge of Plaintiff Hass’s and the New York Misappropriation Class Member's prior use and
688. HomeAdvisor and John Doe #1 have unfairly competed with Plaintiff Hass and
the New York Misappropriation Class Members by creating the impression among relevant
consumers that the goods or services offered by HomeAdvisor and John Doe #1 are endorsed by,
licensed by, sponsored by, originated with, and/or otherwise affiliated with Plaintiff Hass and the
New York Misappropriation Class Members, or that the source of the services offered by
HomeAdvisor and John Doe #1 are affiliated with or associated with Plaintiff Hass and the New
York Misappropriation Class Members, when HomeAdvisor and John Doe #1 has no connection
with or authorization from Plaintiff Hass or the New York Misappropriation Class Members.
689. HomeAdvisor has misappropriated Plaintiff Hass and the New York
Misappropriation Class Member's goodwill and public recognition, and HomeAdvisor and John
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690. Continued use by HomeAdvisor and John Doe #1 of the business names of
Plaintiff Hass and the New York Misappropriation Class Members with any goods or services
691. HomeAdvisor’s and John Doe #1’s actions have injured the business reputation of
Plaintiff Hass and the New York Misappropriation Class Members and will cause irreparable
harm, damage and injury to Plaintiff Hass and New York Misappropriation Class Members
Ohio
COUNT XLIV
Violations Of The Ohio Deceptive
Trade Practices Act (“Ohio DTPA”)
O.R.C. 4165.01, et seq.
(On Behalf of Plaintiff Baumann and the Ohio Misappropriation Class)
692. Plaintiff Baumann repeats and realleges the allegations above as if fully set forth
herein.
693. The Lanham Act Defendants are named as Defendants in this Count by virtue of
its conduct summarized as follows and set forth in greater detail at ¶¶ 11 and 159-204.
694. This claim is brought on behalf of Plaintiff Baumann and the Ohio
Misappropriation Class.
695. The Ohio DTPA prohibits deceptive trade practices, including among others,
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fact.
696. The Lanham Act Defendants are “persons” as defined in O.R.C. § 4165.01(D).
697. As set forth herein, Lanham Act Defendants engaged in unfair or deceptive acts
or practices in the conduct of trade or commerce in violation of the Ohio DTPA by:
Ohio Misappropriation Class Member’s names with full knowledge of Plaintiff Baumann’s and
the Ohio Misappropriation Class Member's prior use and rights in their name;
b. unfairly competing with Plaintiff Baumann and the Ohio Misappropriation Class
Members by creating the impression among and confusing relevant consumers that the goods or
services offered by Lanham Act Defendants are endorsed by, licensed by, sponsored by,
originated with, and/or otherwise affiliated with Plaintiff Baumann and the Ohio
Misappropriation Class Members, or that the source of the services offered by Lanham Act
Defendants are affiliated with or associated with Plaintiff Baumann and the Ohio
Misappropriation Class Members, when the Lanham Act Defendants have no connection with or
authorization from Plaintiff Baumann and the Ohio’s Misappropriation Class Members;
d. making false and misleading statements about Plaintiff Baumann’s and the Ohio
193
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698. The Lanham Act Defendants’ actions as set forth above occurred in the conduct
of trade or commerce.
699. The Lanham Act Defendants knew or should have known that its conduct
700. Plaintiff Baumann and the Ohio Misappropriation Class suffered ascertainable
loss caused by the Lanham Act Defendants’ violations of the Ohio DTPA in the form of lost
701. The Lanham Act Defendants’ conduct alleged herein proximately caused
702. Pursuant to O.R.C. § 4165.03, Plaintiff and the Class are entitled to an award of
injunctive relief to prevent the Lanham Act Defendants’ deceptive trade practices and, because
the Lanham Act Defendants’ conduct was willful, an award of reasonable attorneys’ fees.
COUNT XLV
Common Law Unfair Competition
(On Behalf of Plaintiff Baumann and the Ohio Misappropriation Class)
703. Plaintiff Baumann re-alleges and incorporates by reference all allegations set forth
704. The Lanham Act Defendants are named as Defendants in this Count by virtue of
its conduct summarized as follows and set forth in greater detail at ¶¶ 11 and 159-204.
705. The Lanham Act Defendants have advertised, promoted or offered services under
Plaintiff Baumann’s and the Ohio Misappropriation Class Members’ names with full knowledge
of Plaintiff Baumann’s and the Ohio Misappropriation Class Member's prior use and rights in
their name.
194
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706. The Lanham Act Defendants have unfairly competed with Plaintiff Baumann and
the Ohio Misappropriation Class Members by creating the impression among relevant consumers
that the goods or services offered by HomeAdvisor are endorsed by, licensed by, sponsored by,
originated with, and/or otherwise affiliated with Plaintiff Baumann and the Ohio
Misappropriation Class Members, or that the source of the services offered by HomeAdvisor are
affiliated with or associated with Plaintiff Baumann and the Ohio Misappropriation Class
Members, when The Lanham Act Defendants have no connection with or authorization from
707. The Lanham Act Defendants has misappropriated Plaintiff Baumann’s and the
Ohio Misappropriation Class Members’ goodwill and public recognition, and HomeAdvisor has
708. Continued use by the Lanham Act Defendants of the business names of Plaintiff
Baumann and the Ohio Misappropriation Class Members with any goods or services constitutes
709. The Lanham Act Defendants’ actions have injured the business reputation of
Plaintiff Baumann and the Ohio Misappropriation Class Members and will cause irreparable
harm, damage and injury to Plaintiff Baumann and Ohio Misappropriation Class Members unless
A. Determine that the claims alleged herein may be maintained as a class action
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under Rule 23 of the Federal Rules of Civil Procedure, and issue an order certifying the Classes;
B. Appoint Plaintiffs as the representatives of the Class and their counsel as Class
counsel;
C. Award all actual, general, special, incidental, statutory, treble, punitive, and
consequential damages to which Plaintiffs and Members of the Classes are entitled;
1117;
wrongful conduct and to prevent the wrongful conduct from continuing; and
JURY DEMAND
Plaintiffs demand a trial by jury for all claims asserted in this Complaint so triable.
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Nicholas E. Chimicles
Kimberly M. Donaldson Smith
Stephanie E. Saunders
CHIMICLES & TIKELLIS LLP
361 West Lancaster Avenue
One Haverford Centre
Haverford, PA 19041
Phone: 610-642-8500
Fax: 610-649-3633
nec@chimicles.com
kds@chimicles.com
ses@chimicles.com
and
Scott M. Tucker
CHIMICLES & TIKELLIS LLP
222 Delaware Avenue
Suite 1100
P.O. Box 1035
Wilmington, DE 19899
Phone: 302-656-2500
Fax: 302-656-9053
Scotttucker@chimicles.com
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
1
These excerpts are in the HSPs own words and have been edited to correct spelling and grammatical errors.
1
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
2
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
3
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
Most leads we called had been called on by Even after leaving HomeAdvisor, our website is still linked
13 AL
several other contractors. to their site.
I have over 115 five star ratings with them,
I spent $10,343 last year with them to help my business and
yet they have been sending me more and
14 AL I am done with their unethical practices and they are
more bogus leads that has been taking all
unwilling to work with me to fix this.
my profits earned.
Of the 4, 2 did not even have a correct
address in my city. One lady said she hadn't
searched for HVAC work done ever. One
did not answer at all. Also, one of the ladies
they tried to send me a lead has been my
neighbor for 25 out of the 28 years I have
been alive. They input her name wrong and
address wrong into the system and made
the lead themselves. After getting the lead I
15 AL
walked over to talk with her, she said they
had solicited her earlier that day and she
specifically told them she never makes
monetary decisions for the family that her
husband did. Instead of respecting her, they
generated the information themselves and
sent the lead out to multiple contractors.
This lady is over 70 years old and doesn’t
even have internet to have done it herself.
We asked for 3 leads a week and received 8
leads a day. We have been charged over
$1200 on auto pay in our bank account
We have asked several of times for no more leads and to
16 AL without any notification right after we were
end the account and they won't do it.
hit with the devastation of the hurricane for
"leads" they said were given that WE DID
NOT accept, nor ask for. Many times we
4
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
5
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
6
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
in contacting a professional
First off they misrepresented themselves. They had called
me as if they were in need of someone in my area (they said
they had no one) to change out HVAC equipment. I called
back thinking they were an apartment complex or
something. Well, I found out that they were not that...The
sales guy told me that I only had to pay for leads that I
called. I found out that was not the case...they told me that it
would take a week for them set stuff up. Well I found out
that they do that so you can't get your initial fee back. They
25 AR
say that they cannot issue the credit back to you after 3
days. That’s nice to know. It took me until February 21 to
get this cancelled. This was after I called multiple times.
Talked to their online chat. And shut all appointments off
on my phone app (which I found out was only for 7 days). I
had their access to my credit card revoked. Well they tried
to run their charge again thru my card. I had to have my
card do a security breach shut off. Something needs to
happen to this rip off company
Was ripped off bigtime to the tune of $1500
26 AR a month for mostly fake leads, have all
them photocopied and ready
Very few leads were successful. Several
times when attempting to follow up on HomeAdvisor refuses to credit the leads that were dead
27 AR
leads the client had no idea what we were ends instead choosing to charge us for them.
talking about.
I have had customer tell me that they were redirected away
Homeowner new nothing about a request.
for my website and sent to HomeAdvisor. Google searches
28 AR Leads out of service area (still required to
for my company name are at times redirected to
pay).
HomeAdvisor.
Fake leads generated by other service
7
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
providers.
Leads send with no information about the
project or out of scope of services.
Manipulating leads, sending poor leads and
requesting to pay additional for good leads.
Most of the leads that I get from Each of the 4 times that I have terminated, there has been a
HomeAdvisor are not quality leads ... they problem. There is no place on their site to do this and you
are not screened and then to top it off they have to speak to a representative and then another etc. Then
share the same exact lead with many other when they call trying to get you to return, they mess up your
professionals, not just 3 as it says on the information all over again and one has to redo everything on
29 AR
dashboard. When you get a bad lead and their site...
you want to get a credit for it, you get the
run around and usually get declined for the I would get people looking at my website and contact them
credit. It actually becomes automated ... only to be too late "they had already found someone
"theft" directly out of your account. else"...This occurs way too much...
I started an account with HomeAdvisor and didn't receive a
single quality lead. After giving it a couple of months, I
tried to cancel my account and they would not allow me to.
I called them nearly every time they charged my account &
they still refused to cancel. Finally I just went ahead and
canceled the credit card they had on file. They continued
sending me leads and then started generating a bill that
30 AZ
wasn't being processed. They ended up sending the balance
to collections. I ended up calling them and had to tell them
my business was closing and that right there was the first
and only time they agreed to allow me to cancel my
account. AND only if I brought my account balance to zero
dollars. So I went ahead and paid the balance for the sake of
not having any negative reports on my credit.
Asked them to have certain leads coming I asked them to close the account. They said they have.
31 AZ
in, and I got leads for things I can’t do, or
8
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
asked for… I’m still getting charged for leads I haven’t even seen.
9
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
10
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
11
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
12
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
13
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
leads.
14
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
15
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Appendix I
Excerpts of Home Service Professionals’
Experiences with HomeAdvisor
16
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Appendix I
Excerpts of Home Service Professionals’
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Dead end leads. ...at first I called several times to complain about leads that I
was receiving which were dead ends I even took it a step
Wrong phone number further and hunted down the addresses and left business
cards and knocked at the door. After numerous attempts of
Wrong address trying to call the number provided, I then contacted
63 CA
HomeAdvisor several times to discuss the matter. They
Vacant homes offered a credit on a few but when I went to cancel
membership there was a balance accumulated. Now there is
Homeowners having no idea why I was a law firm McCarthy Burgess & Wolff demanding payment.
calling them Can somebody please contact me regarding this?
I was told that I would be charged for leads
that they supplied after I made contact with
these leads. Also I was told by Davian
Harris, the HomeAdvisor rep who signed
me up, that I could set my monthly lead
costs to whatever I felt comfortable with.
So I set a $250.00 limit. Two weeks later I
64 CA was billed for almost $800.00 in leads.
Also was told I could select my service
area. So I told them I would limit area to 30
mile radius. That info was also ignore as I
started receiving leads from 120 miles
away. I called and told them to cancel the
service and asked for a refund based on all
of the above info.
...the first day on a Sunday the phone went I called HomeAdvisor; the person said I was set up wrong.
off at 6 a.m. I called 15 minutes the person They set me up with gutter cleaning; I'm a general
66 CA
said her husband did the job. On over 40 contractor in the state of California. They said there was
calls, I went through the steps of calling going to be kitchen and bathroom remodels, never got one
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first then texting and never returning a call bid for that.
back ever…When I signed up for
HomeAdvisor they didn't tell me they were
going to send this lead out to five different
contractors. One was a $40 lead to put a TV
mount up she said six people called her for
that. That's one of the jobs I made money at
I made $100 had to pay $40 to
HomeAdvisor...
Bad leads, unable to contact leads, lead
numbers go to a ring / busy a lot. Many ...several times they have "limited our access" after I told
67 CA
leads already done even though I contacted [sic] them I was considering terminating the service!
them within seconds.
They sent me leads that were not in my
68 CA
category and would not credit them.
Well from all the leads I received I got 0
jobs. During a week of working with
HomeAdvisor I didn't get any job.
However, I have been receiving 3-4 lead
69 CA
phone calls a day but 99% of those dead
leads. Only 1% of them I have spoken but
even thou I didn't get any job. I don't even
know if those leads were real.
I was told I would receive 5-15 calls per ...I had no idea how their supposed lead system worked or
month which is why I even considered and why I was receiving charges and I believe after the run
paid for advertising with them....I have around that the sales rep knew this. Time after time they
ZERO confirmed phone calls from their continued to not explain how it worked in proper detail or
70 CA
supposed listing me on their website...The remove me from this so called service. I consistently
lead scam is something I noticed because explained to a high degree that I would not be using this
there were unknown charges on my credit lead BS do to the fact that it would never work in my
card which has taken over 3 weeks to stop business model. They signed me up and kept me on it even
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and will have cost me nearly 250 bucks for though they knew I did not want this service. I'm nearly
NO reason. I never responded to any of certain and that's where I feel cheated. All the personnel I
their notifications about a lead because I spoke to are seem to be immoral scam artists who give you
had no idea they were charging me for the an endless run around explaining how the system that they
extension number they sent me...I made this say they have explained to you works. They use vague
known numerous times and they told me terminology and it's nearly endless, now that I look at it, in
that they were keeping my money and were the way they signed me up to this scam and then kept me
not going to reverse the charges that I had from understanding why I was being charged or that I
called them about 3 weeks ago. This is a would again be charged at some point. It's MADDENING!!
total scam and they are ripping people like ...All so that they feel safe giving their hard earned money
myself off!! to a bunch of low down rip off artists!!! I just want to
scream I'm so pissed!!
...I hope they burn for what they did to me thus far and I
wouldn't put anything by these SCAMMERS!!!
...I first signed up in April, received a few leads none of
which provided any income. I complained and they said to
stick with it. Their fees were so high and the leads never
answered their phones or followed through. I asked to quit
and give me my money back. They said they couldn't. Then,
in August, someone called me and lead me to believe that I
could still use the remaining money on my first account if I
Leads did not answer or even return phone
just gave them my debit card to reinstate me. I asked them
71 CA calls yet I was charged for each. Different
several times whether it would cost me any more money
rates that were high.
and they assured me that it would not. Next morning,
$347.98 was again charged on my debit card. I called
immediately and they said they were sorry I didn't
understand. I insisted they return my money at once and
they said they couldn't...I called my bank and asked them to
intervene. On 10/23/2017, my bank said that the temporary
credit they gave me was now permanent and case resolved.
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Leads not related to my service categoryThey would not refund prorated contract fee back to my
82 CA company, and we have only been with HomeAdvisor for
Leads from persons who state they never less than 6 months.
requested a pro thru HomeAdvisor
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from us
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given unauthorized leads, I was charged pay the annual fee. Then every time I received a lead, they
$19/lead. However, the uninitiated leads charged me $19.00, and the dispute process would proceed
continued to come, charges to my card to exhaust my time and money.
continued, I would call and dispute them,
then they would reverse all or a portion of Because I fought them, HomeAdvisor published an
the charges sometimes refusing to reverse invalidated negative review that now pops up when you
the entire amount. google my business.
93 CA
They use my name to redirect people to their website
I "terminated" on April 30, 2018 and they still have not
refunded my money as of today 5/21/2018. I canceled
within the 72 hours as stated in their TOS.
I've talked to them numerous times and they say the money
is coming back to me for cancelling within the window. I
have yet to see it. After spending 3 hours on hold today and
94 CA No leads were generated. not being able to reach anyone I went ahead and filed a
dispute with my credit card company, and also had to
change my credit card number. I am cancelling the previous
card to not allow them to erroneously bill me.
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certainly mislead.
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They encourage their sales people to lie, cheat, and steal and
tell the client whatever just to make a sale.
My company purchased a large volume of I was a Handyman Connection franchisee, and we had a
leads from HomeAdvisor in a very short national account with HomeAdvisor. Have tried for a very
period of time. Many of the leads we long time to cancel both accounts. One account was for my
received were invalid numbers. When I Handyman Connection franchise and the other was for my
134 CO would call the customers, they were Asphalt/Landscaping company. I was unable to cancel both
confused because often they were trying to accounts after several months of fighting with
call my company directly, but ended up HomeAdvisor. Each time I attempted to cancel, they simply
calling HomeAdvisor because put my account on a temporary "pause." I was told the
HomeAdvisor switched our phone number account was cancelled then out of nowhere I would start
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in the listings and directed it to their receiving invoices for leads. They would not actually close
number. Also, I would call the customers the account then automatically remove the pause and start
and they would be very angry before we generating leads again, billing me for them without my
even had any conversation because they permission. Upon finally terminating my Handyman
were already confused and angry with Connection account, we had a dispute over a $900 bill that
HomeAdvisor. Very often customers would was generated from leads that surfaced after I had requested
just hang up on us or tell us they never the account to be closed. I fought with HomeAdvisor for
requested anything or anyone to call them. about a month to resolve this with the end result being that
Also, leads that did come through were they waived the $900 bill and cancelled the account.
often inaccurate. For example, we would However, just a few days ago, almost a year later they
get many window repair leads, although I (HomeAdvisor) called me saying that if I did not continue
had my filters set to indicate we ONLY using the service, they would bring back my $900 bill that
install new windows and we do not work they waived upon termination and send it to collections. I
with glass. I would get constant leads for told them I cancelled, and want nothing to do with the
broken glass. In asphalt, my company only company and the rep told me they would re-bill me for the
sealcoats, we do not do large scale paving, $900 and send it to collections unless I signed up and
however I would often get leads for large started taking leads again.
scale paving or dump truck services such as
hauling gravel which is not in the scope of The paving account was sending leads that have nothing to
what we do. Home Advisor promised to do with my company, nor were they in any reasonable
change these multiple times but never geographic location that I requested. This account was also
delivered and still charged us for leads. supposed to be terminated. However, both companies can
still be found in Google searches with inaccurate phone
numbers. For the paving company, they simply removed my
phone number and replaced it with one of my ex-employee's
phone numbers. I cannot get them to remove or correct this
so now any calls that come to my company are going to my
ex-employees cell phone.
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knowledge of looking for a home names of other companies in my area to call!! To confirm
inspection via HomeAdvisor. Many times this, I called them today at 11:46 a.m. EST and the advisor
I emailed and called customers and never on the phone did the same thing to me! I no longer pay for
got calls back. leads, cause they're awful, but HomeAdvisor was beyond
shady by taking business away from me with a bogus phone
number and giving customers a list of other home
inspectors. Again, this is an all-time low for them today and
I'm considering legal action of my own. How many times
have they done this to me since I turned my leads off
several months ago?
I keep getting calls and texts from HomeAdvisor, even rude
and nasty voicemails to sign up for the leads. I already
complained to stop the calls and texts and nothing. Today I
147 CT got a text saying they have my social and date of birth to
have me sign up. I don't know if I can be of any help to
show how they go about their business - call and harassment
of potential clients.
Almost two years after terminating service, I discovered
that my listing on Www.whitepages.com listed Home
Advisors phone number. Whitepages is a major directory
Unqualified leads, difficult to obtain and I can only imagine how many leads that should have
148 CT refund, not paying sufficient attention to been mine were handed to Home Advisor during that time. I
my criteria. am in the kitchen remodeling business and it is not unusual
for a job to be in the $50,000 range or higher, so even a
single missed opportunity could be very costly in terms of
lost profit.
They sent me many leads, where no matter They put me on a $450.00 per month of leads not to exceed
what I could not reach the customer, that. After all the bogus leads I lowered it to $150.00. I still
149 CT through phone, text, or email. At least half received leads over my limits. Currently I owe them
the leads where I talked to the customer $820.00 for leads that I could not contact the customer or
only wanted an idea of a price. Also they for leads for a year later. I am not paying for leads that I
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167 FL Called to get charges reversed and the guy told me sorry
that's how they do business!!!
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I was told on my sales pitch that "Service HomeAdvisor, then finally being refunded by HomeAdvisor
Magic had a lot of complaints of bad leads, (which went back on their statement of canceling only being
so we changed to HomeAdvisor and I don’t allowed to be done through mHelpDesk).
know if you’ve seen our commercials or
BBB ratings, but we have moved beyond Once I joined I was strong armed into "250.00" dollars a
having bad leads. If you get a lead that is month that actually read $500.00 ($250 for market match
not genuinely interested in a HomeAdvisor leads and $250 for exact match leads). I later asked to only
service professional, all you have to do is be paired with exact match leads, as my experience had
click a button and you won’t be charged." shown that exact match leads were not paired with other
This turned out to be totally false. service pros and had already seen my information. I was
told that I couldn’t. Then when I threatened to cancel I was
I really believe that they have people who told they would let a manager override that for me. Instead
call and are not real. I have been trying to of doing it though they changed my numbers to $100.00 for
find out if they had something like the market match and $350.00 for exact match... all of this
Ashley Madison scandal of fake people while I demanded not to have over $100 a month. I was
calling, but haven’t yet. My last two told that it was not possible to go as low as $100.00 a
"leads" were the same person with different month.
names. I have also received numerous
Nigerian scams through HomeAdvisor.
Leads that say they want to sign up asap but
are hearing impaired and cannot talk on the
phone and want to over pay my credit card
and give cash to their caretaker.
The vast majority of leads I received from ...I got a lead that was completely miscategorized...The rep
HomeAdvisor were fake. Some of them even agreed that it was miscategorized, and said it could
would ring non-stop, never reaching a take a few days to get a determination, because
voicemail box and never answered, even HomeAdvisor is so cheap that they won’t even allow their
184 FL
after multiple attempts. Some of them employees to refund a customer’s money. I explained that I
simply said the number had been was upset and that me continuing to use their services was
disconnected. Out of the 41 leads I contingent on whether I got the lead fee back or not,
received, about half were miscategorized, considering it was an extremely black and white situation.
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I was approached by a rep, who stated they This started the chain of "We 'can't' refund membership
changed their entire system and they've fees" from HomeAdvisor script book...
gotten better about having legitimate leads
(it's pretty sad when your rep admits they
send out fake customer information), so I
signed up again figuring why not.
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zip code or expertise and charged for them generating website. Gotten to many calls and then the lead
and never give credit. comes through on HomeAdvisor as well so I get charged for
a customer I have already spoken from my website presence
when I had my account active.
Out of 98 leads received and charged for
only 12 were good. I have been charged
$914.98 for bad leads that I could not make
contact with the individuals that supposedly
...I have been unable to terminate. I tried to cancel in May
initiated the lead. The charges per lead
198 FL 2017 and was told it was too soon that all they could do was
have ranged from $15.04 to $27.25, there is
turn off my leads.
no explanation for what the charge is based
on and when I have called HomeAdvisor
they claim to be unable to provide credits
for these bad leads.
Called the lead within seconds, no answer
more times than I can count. No refunds.
Called leads back with language barrier, I
do not speak Spanish. Called for refund and
I have had Google AdWords for the past three months, First
was told that's a glitch we haven't fixed yet.
Page- Top Page. I was getting calls for my services but now
Sorry - no refund. Called numerous leads
(NONE) I wondered why ??
and the response was – “you’re the 5th
I haven't had one single call since I refuse to pay
person that has called me from
HomeAdvisor’s for their bogus leads and they've placed my
199 FL HomeAdvisor we are only inquiring not
account on hold.
ready to hire.” No refunds. Called leads
They’re holding my company hostage, they have sabotaged
back with wrong numbers - no refunds.
my advertising no question. This is a new business, I am
Called leads back and have been told “oh I
trying to hold my head above water and for this company to
was just looking online I didn't want to hire
take advantage of the small businesses - terrible.
anyone.” Sorry - no refunds. HomeAdvisor
to me – “you have an excessive amount of
refund requests and we will review them.”
Everyone has been denied.
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service requested or there is no property will call once and if I do not pick up they will not call back
available for me to provided services to)
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They are the biggest rip off and I can’t believe I still hear
them advertise on the radio etc.
The leads they have provided were not
accurate. Homeowners did not call back at
all or they compared experiences to Angie's I do believe HomeAdvisor did sell my information. I never
213 FL List. got so many junk emails before I joined them. They sell a
good deal but don't come through.
They charge for leads they are not even
verified.
I have been told by a customer that HA told them I was
unavailable and recommended a competitor when my leads
were turned off. This was a customer that mistakenly called
HA off of one of your listings in my name instead of
clicking below that on my name. HA is causing me to have
to advertise an ad word of my own business name so I don't
get charged for my own customers.
214 FL
HomeAdvisor charges to be a part of your "directory
database" but will not let customers search that DB readily
to locate me.
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They said I was not eligible. THAT I DID NOT GET ANY CLIENTS! So, I had to
Lead received on 04/08/18 at 2:33 am on a dispute on the credit card and they are saying are going to
Sunday (charged $28.70) – again not send me to collections!
eligible for a credit.
Never got a legitimate lead, no clients ever
picked up the phone even though I called as They refused to terminate my account, and refused to give
soon as I received the lead, and didn't me a refund when I realized that the leads I was getting do
232 FL
generate one job. In addition, they told me I not work. Instead they chose to try to continue my
would get customers immediately, and I membership, and continue to charge me.
didn't get any.
I complained about not being able to stop leads coming in,
even when I turned them off. I had set a limit of $750 but
233 FL
they kept taking money and it got to over $2000. I had to
shut my business account down at my bank.
Bad leads, no refunds for bad leads, phone Getting credits from them for their leads is very difficult.
234 FL numbers are bogus, addresses are incorrect They do not ever find why they should give you a credit
at times. acceptable.
Over the years during off season for HVAC HomeAdvisor's system to pause leads is set up to make it
I got leads for repairs that never returned hard to do so. I could pause market leads on my phone app
my calls or emails. Others simply said they for 48 hours but exact match leads 24 hours. So every day I
wanted a price quote over the phone or would have to go on the app to pause. To pause for longer I
we're looking to buy a part from me to had to call them. In the past they used an automated call in
install themselves. HomeAdvisor refused to system that was terrible! It asked you to hit numbers to
refund anything for these leads. If I did pause leads for various numbers of days. I think it was set
235 FL
have a legitimate trash lead and actually got up to not recognize numbers punched and disconnect the
someone to say they would give a credit it call. Then trying to call a live person you would get the
would never happen. They charged my card office was closed, call back during normal hours.
anyway. I simply didn't have the time to I tried to terminate my agreement several times over the
continue the effort of calling and arguing years due to them refusing to remove charges for bad leads.
over the same issue time after time. Each time I was required to talk to several people having to
Every time I called about trash leads I was explain to each one why. Each time I called to cancel they
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told how I would have to be fast calling the would eventually wear me down so I would just put a hold
customer back. So I tested it. I would call on leads.
within 2 minutes of receiving a lead. Most
the time I still couldn't get the customer
even if they had multiple numbers listed
and text and email. When I did get someone
often they said someone had already called
them and it was taken care of.
HomeAdvisor gives leads out to some
contractors first then staggers the others
making sure the company they choose gets
a good lead.
236 FL The leads were bogus and a complete scam They are charging me for the bogus leads
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241 FL Dead leads Impossible to get refunds, way over set budget
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number." HomeAdvisor consistently denies on the other 75 and somehow they want me to believe, this
these for credit requests, stating "the is "productive?"
customer was unable to be reached."
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my inquiry.
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food etc.
Charged for:
Leads when we could not get in touch with
whether it be an invalid phone, email or
address.
Leads coming through for categories we are
not profiled for.
Leads coming in from areas we are not Every time we talked about terminating our membership
260 GA profiled for. they transferred us to different department. Offered a credit
Leads coming in from a HomeAdvisor but would not refund money.
phone number.
Sending leads after our monthly limit has
been met and exceeding our monthly limit
by hundreds of dollars monthly.
Only want to offer a credit on account
instead of replace the money that they stole.
The biggest problem we have with this
company is the leads that are being sent to We never got an opportunity to cancel because they were
us. Of the 75 leads that we have been sent threatening to put us in collections for the balance they said
since March of 2017, only 10 we actual we owed of $501.00 that were generated from leads that
good leads that turned into a job. Most of never answered the phone, text or email. We are disputing
the leads, especially the last 10 that were that with them but they will not credit us back for them
sent to us we were not able to make contact because they said they cannot control if the customer
261 GA
with at all. Some had no way to leave a answers the phone or not. However, they did state if the
voicemail, some said they never requested phone number or contact information was incorrect they
any information from our company. Any would credit us but if the person never answers the phone
and all communication methods sent by how do they know if it's correct or not. They refused to try
HomeAdvisor were used as well, including to make contact themselves as well as that is our
phone, text and email. These customers responsibility.
never responded and HomeAdvisor refused
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No one answers the phone numbers that I believe that HomeAdvisor buys up all of the ad space
262 GA
were provided. making it difficult if not impossible to advertise
I am always getting inaccurate leads and
263 GA when I call in to get them credited I am
always denied.
Wrong numbers, no response, people not
knowing they contacted HomeAdvisor.
Majority of leads are work I'm not profiled
for. They told me it takes too much time to
screen leads even when description clearly I have searched my company and seen numbers listed that
264 GA
has nothing to do with work I've requested. were not mine.
I found out today that when I made credit
request for wrong type of work, they make
minimal effort to contact lead then just call
it denied.
...I learned that in one of the metro Atlanta
zip codes we signed up for (we signed up
for numerous zip codes) they have 96 other
providers in the same industry. We signed
up to receive (and paid in advance for) 10
leads per week. In the last 30 days in ALL
265 GA of metro Atlanta HomeAdvisor had only 26
leads for our industry. The rep would not
give me any stats beyond 30 days, he said
that is all they have available.
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that lead is being shopped out to several HomeAdvisor switchboard to my phone at a cost of $24.65.
contractors at once. The lead fees are also
charged at full price and categorized as an
exclusive lead when in reality they are not.
Totally unethical and deceptive.
I started service on a Friday. The salesman said he would
call the following Monday to coach on how to set up my
account. I did not receive the educational call, however 5
leads made their way to my phone/email...I left them alone
as they were not even related to my specialty. By Friday, I
decided to explore my account rather than wait for the call. I
was surprised to find they had not only charged me for the
leads I had not requested, but auto-debited the money from
my account. I contacted their customer service chat line and
explained what had happened. He said the leads can be
turned off and the ones billed totaling $110 would be
In my conversation with the salesman, I credited (I printed the transcript). A couple hours later, I
311 IL was given the impression you only pay for received the educational call I had been waiting for all
the leads you accept. week. I asked that person to confirm the credits, but they
informed me the credits were not valid and had been denied.
At this point I asked to cancel service. I spoke with a
supervisor who offered to credit the leads if I kept the
service. I said no. She then said the leads were not capable
of being credited and the annual fee ($287) was already out
of the 72 hour grace period, however she would submit a
credit request for the annual fee and I would hear if that
would be credited in 2-3 weeks. I submitted a case with
BBB, but BBB requested I contact two gentlemen with
HomeAdvisor via email for resolution. They have not
responded to my detailing of events and request for credit.
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the garage was on the alley with no other up it became very clear within a week that this was a HUGE
access. They supplied many junk leads. mistake on my part.
The person signing me up was more interested in securing
my bank info than setting me up with the correct services
that I provide as an excavating contractor. I found out the
hard way that these fees were coming out of my account if I
hit the "I am interested" button to just see the details. It took
about a week before noticing the fees were withdrawn from
my account for junk leads that didn’t even fall into my
category along with the details a majority of the time that
said customer did not provide any details which I now
believe was a setup lead from HA to hit you for more
money. I also would get leads that gave an address where
the owner wanted a new driveway and when looking on
Google Earth the house was an older home in the city with a
zero-lot line home with 5' from house wall to property line
fences on both sides and the garage was on the alley with no
other access. They supplied many junk leads. On June 25th
I stopped all leads from coming in. However, HA still sent
leads via e-mail to tempt you to open so you would be
charged so there was no activity from then up until the
present (7/4/18). On 7/3/2018 after my office manager
accessed our bank account balance, we found that even
more charges in the hundreds were levied and drawn out on
June 2nd despite all the credits that were returned to the
account from fraudulent leads I received in the few weeks I
was with HA. We called to discuss getting a refund on that
money and as usual they are happy to give us credits for
future crap leads. This is the scam. They take out American
currency immediately but offer the worthless free lead
credits for later. Don't buy off on this. They have weekly
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I was put into on hold for many hours and was told it will be
a month before they can decide whether I get my refund
Inconsistent fees were being charged and back. They lied about giving me a refund the same day I
344 KS the customers never answered the phone. called just so I would agree to pay for the 4 leads that they
Never really heard back from anybody. gave me.
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When I signed up for home advisor the After I found out that we get charged for every lead, I put
367 LA sales rep told me that the only leads we my account on hold and the next day HomeAdvisor charged
have to pay for are the jobs that we receive. my account almost $500.
...leads for things I didn't work on and
368 LA
stated to them that I didn't work on.
I was told when we signed up that we would be able to
control our leads precisely... that is not the case at all. The
None of the leads' phone numbers were
leads are like a faucet, they are either on or they are off.
given to our company. The platform or
You can control the amount that you want to spend for the
dashboard only gives you a generic number
369 LA month, but you cannot decide on whether you want a
with an extension to dial. Every single
specific type of lead versus another very easily.
contact attempt went to a generic
voicemail.
...they would not cancel my membership immediately. They
are offering "credits" instead of any of our money back.
They billed me for $800.00 of bogus leads and then turned
370 LA
me into a collection agency.
Told them my service area and my To our recent knowledge, our membership had been fully
371 MA expertise and they began sending me canceled and we would no longer be charged. After
ridiculous leads outside of my service area checking with our bank today, they have continued charging
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and for services we don't provide. We never us and sending us bogus leads. We called again and we
accepted these bogus leads and they began actually got hung up on! We are still being scammed out of
charging us anywhere from $30-$200 per our money.
lead! We called to make changes and they
said everything was all fixed. No, it wasn't.
Over $1000 later, we called to cancel.
1. I would get leads from people that never
owned the property. Would call
HomeAdvisor and told that they cannot
control that
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"to see how things were going." I shared voice verification. When Roscoe or Reyes, whatever his
my frustration with their leads, but name was started getting insulting because I refused to
thankfulness that I didn't have to pay for change my mind, I ended the call letting him know I'd be
them and she informed me that I did, contacting the State's Attorney's office letting them know
regardless of whether they materialized as about HomeAdvisor's illegal business practices. I later
jobs or fitted my category. It wasn't checked the app to make sure leads was turned off. It was.
HomeAdvisor's fault if "the client"
misclassified their job request...
Every lead I was given was fake, the Even after termination, for the last 2 years I'm still listed on
numbers were not in operation or I would their website, have asked many times to be taken off and
378 MA go to the property...only to find out that the they refuse to do so, I still receive calls from them on a
property owner was never looking for any daily basis. Since I signed up for HomeAdvisor, my email
painting. and phone number have both received dozens of spam mail,
text, and phone calls which leads me to believe they also
sold my personal information. At the time I was just a
startup company and 10 out of 10 against HomeAdvisor
they almost ruined my business before I even started and
left me in debt right from the start.
Customers were all "bottom feeders" low It was a disaster from the start, was told my processing of
bid. The potential customers were not my initial application would take 24 hours, yet in 2 hours
379 MA interested in anything but low price..... not was approved and my credit card was being charged for
what my current customers are like, getting leads…
out was not fun as they kept trying to give
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me a free dead end lead to keep me on, and ...I was coerced into spending more to gain an "advantage"
kept charging my card for zero cleaning over competitors to be placed at front of the line of vendors.
jobs done. HomeAdvisor would contact 3-5 contractors in the area
with the same lead, charge them all I assume and only the
member who is paying the most has any chance of winning
a customer.
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HomeAdvisor. Some people had no interest signing up with HomeAdvisor. Then all of a sudden with no
in service and wanted to know prices of warnings they sent us $1000+/week worth of leads.
service. I receive some duplicate leads, and
many that went straight to voicemail for
weeks.
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credit card that was being billed and they did a stop
payment. We continue to get mail from HomeAdvisor
threatening that we still owe money and if it is not paid
HomeAdvisor will contact a third party collection agency.
When I originally inquired about
HomeAdvisor's services, they promised
certified leads which would ONLY be
available to THREE (3) contractors,
including our company--this is completely
false.
After several issues with our service, our leads were being
...the leads would be bogus and turned on without proper notification while the leads were
unchecked...I would say that 3 out of 5 being charged against our account. There was a total of
388 MD
leads were not certified and/or falsified in three times when HomeAdvisor turned on leads without
order to charge us for the lead. notifying us, prompting us to call their offices to settle the
issue.
Being frustrated and unsatisfied, I spoke
with a HomeAdvisor representative
wherein which he confessed that leads were
being given to five (5) or more contractors,
contradicting their original promise of
giving leads to only three (3) contractors.
Fake leads, no answer leads, wrong
numbers, never getting reimbursed for bad
389 MD
leads. My spending target is $2,000 per
month and most of the leads are bad.
Out of approximately 14 leads, I was able
to actually speak with 1 person who
390 MD actually owned the home and wanted work
done. The other leads were wrong numbers;
call went into an answering
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directly told us they weren't the refund requests to leads is too high, and that they can only
homeowner, including one person who was override that if there was a mistake in the lead (such as
pricing out things so he could decide about when we got one for mold remediation even though we are
buying and another who said he was pricing not certified for mold and HomeAdvisor knows that). We
out a possible surprise gift for his now have leads turned off, but in the past few days we have
girlfriend, who was the homeowner; and c) been getting constant job requests and alerts that a customer
told us that a HomeAdvisor employee had chose us to talk about their project - these are different than
told them over the phone they could just leads in that you are only charged if the customer actually
talk to some contractors to get an idea of agrees to talk to us once we click "I'm interested."
pricing even though they were nowhere However, the major problem I have with this is that there is
near ready to commit. no visible indication of what the fee would be if we do
agree to talk to them. Customers do not always seem to
know that contractors will be calling them immediately; on
more than one occasion when we received a lead during
non-traditional hours and called right away, the customer
was angry that we were calling at an inappropriate hour.
Most of the leads where never completed
leads. Potential customers started but
canceled the submission. But yet I was
charged direct request charged of $24.99. I
even went on as a customer to see what a
customer went through before entering
information about work canceled/deleted
403 ME
lead. But in the morning I got a lead by me
to do work at the requested worker charge.
Most of the leads I called said the same
they had started but never finished or
deleted the lead, but HomeAdvisor still
charged contractors for this lead and does
not refund.
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We had been told that if there was a good reason for not
getting work from a lead, the charge would be refunded.
For example: we did not know that the client not answering
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We found out for other leads there are even more charges -
as for "exact lead" they are an additional amount of $150,
$250 for "market"? This was not explained before we
signed up.
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the whole year. But they send those emails out in hopes
more people are like me and signup to get those dozens of
homeowners that never really exist.
Many leads were for cleaning gutters and I
called the customer and they really wanted I've spent over $700 and I finally told them to put my
septic tank cleaning which I do not do! account on hold for 90 days then this week the leads started
They also sent me leads for areas where I back up again! Then I have to call customer service and
412 MI
do not do business and categories that I do stop the leads which they were going to do for 90 days
not do business. I have not made one dime however I got a confirmation email that said the hold was
off their leads and it takes up my time only for 30 days!
chasing down leads!
...At least 4 returning customers outside of HomeAdvisor
tell me they had a hard time contacting me because every
time they'd go to my website it would take then to
Numerous leads I received were sent twice HomeAdvisor where it would tell them that I wasn't
sometimes 3 times. Most leads never available but they had other installers they could refer to
answered calls, texts, or emails. At least 30 them
413 MI
were numbers that didn't exist or were
wrong numbers. Every time I asked for ...I finally closed my bank account so the said my
refunds I was told no... membership was put on hold. But still sent leads, charging
me for those leads, and even turned me over to a credit
bureau for over $1900.00 in leads after my membership was
put on hold.
90 % of the leads I had were bogus, no one
414 MI
would answer the phone, emails or texts
Leads went out to multiple providers in the
I talked to Josh Lent on October 16, 2017. Josh then asked
area (Warren) 15 mile radius. 8 out of 10
me how much I spent in leads versus what I made. Josh
times I was on the call within a couple of
415 MI next offered me 5 free leads when he called me on October
minutes. I was sent over 70 leads that we're
16, 2017 for the inconvenience. Most "free" leads are stale
paid for, 8 people I actually spoke with and
leads from long ago. I still have the email from this offer.
3 that had me do the work. I was Home
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We contacted HomeAdvisor regarding this capacities as we've had homeowners contact us and say they
specific lead and they said that because we saw us on a list online from HomeAdvisor but were not a
were able to make contact they would not lead generated through our account.
refund the lead, despite the fact that the
daughter had no legal right to make
decisions for and/or changes to the home.
Lastly, we have received leads for jobs not
within our service area and leads even
though we've "turned them off."
HomeAdvisor is not crediting improper leads for services I
am not qualified or licensed/certified to perform. The claim
421 MI
for denial is that HomeAdvisor could not reach the lead to
verify the exact service requested.
Several of our "leads" were from phone
numbers which did not work when we
called back or wrong numbers.
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competitors testing the system, people who we cancelled. They are all about implementing our annual
are not tasked under the right categories, fee, plus the leads that we receive are never correct or true,
and lots of other issues. We have spent typically.
hundreds of thousands of dollars at
HomeAdvisor. There are many times that HomeAdvisor would have us
listed under services with a blind number, even after we
were terminated with them. As we have cancelled with them
a few times. We would search installation in Minneapolis
and we would pop up, because we have hundreds and
hundreds of leads under HomeAdvisor, but when I went to
the number it would just call the HomeAdvisor service
center and also it would act like it was going to Midwest but
it would go to many other contractors. I do feel customers
thought they were trying to reach Midwest, but
HomeAdvisor was acting like Midwest until they got into
the phone call and then send it to other contractors.
I have had a few leads who have never
heard of HomeAdvisor. I have had leads for
things that I don't do and that I don't have
on my profile. I've received leads that I
cannot get ahold of. I've also had leads that
433 MO I have contacted and they tell me that they
have never been on the website but I'm the
3rd or 4th HomeAdvisor person to call. I've
been told over and over about all of the
work in my area for what I do and yet never
received any leads for any of the work.
I went to bank to stop it and I was being charged for another
I signed up didn't use them after like 3 bad
month. They stole over $2000.00 out of my account. I was
434 MO leads and bogus leads. They would send me
posting on their Facebook pages and they removed my
leads and charge me.
comments then deleted me and blocked me so I couldn't
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pitching their sales calls wrong and our number isn't set up
correctly and setup under an undeveloped account, however
we are paying them a membership fee yearly for this service
and the leads we do get come to said number that is setup
under an undeveloped account. Why aren't these leads they
are referring to in these sales pitches already coming to us?
Why are they saying they have leads and names and
numbers but not giving us this information when we tell
them we are active members with HomeAdvisor already?
FALSE ADVERTISING
The phone number associated with my business was not
mine. I had to call them every time I came across a
different site to get them to stop using my name with their
phone number. I also had a customer of mine call the
number looking for me, and was told I was no longer in
business, but they could match him up with a plumber.
Leads start off good for first 3 weeks then
they stick it to you. Then you get fake I am a member of Angie's List. HomeAdvisor bought
leads. I was advertising in plumbing and Angie's list. Now I pay over $600 a month to advertise on
would get calls for roofing, when I tried to Angie's List. I just found out that if anyone new goes to
449 MO get my money back, they said now they Angie's List, there are questions they are asked, type of
have my contact information should they service needed, date needed etc., then they are given a
need a plumber, so no refund. choice of 3 contractors, 2 are HomeAdvisor and one is
Angie's List. The questions the customer filled out are sent
I never had one lead for the entire year to the 2 HomeAdvisor professionals and they are billed for
those leads. They get to call the customer. The Angie's
professional is never contacted unless the customer reaches
out to him. So to me they are double dipping. My leads
have died since the merger, and I can’t get out of my
Angie's List contract without paying a huge penalty even
though this is not what I signed up for.
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list.
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numbers.
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I didn't realize that I would have to pay for leads that didn't
result in me actually successfully acquiring customers. If I
had known I was going to have to pay for them just giving
me names and phone number I would have never signed up.
I was told, and asked, about the budget that they set for me,
but since I assumed I would be paying out of earning that I
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guaranteed jobs
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many times.
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Was charged for leads when I paused ....I had paused the lead flow because I was not ready to
557 NY service and continue to receive leads and receive leads at this time but still was given 2 leads and
get charged without calling any charged without attempting to call any leads.
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$238.41 for leads that I never used. I disputed both the fees
and the membership fees with my credit card company and
have now on 10 Jan 2018 received a letter stating that after
numerous attempts to collect the debt (no one from
HomeAdvisor has called me or sent me an email) they are
sending my account to collects for the disputed amount.
We had several leads that were false. When
calling the leads, they would not connect
and we tried a few time to connect but did
not connect. Plus we get leads and a lot of
the people that we talked to said that they Called on 1/15/18 to terminate account and was told they
were just browsing and were not interested cannot because the account was on hold and would not
at that time, and we were charged for them. provide me with any more information.
568 NY
Most not legitimate or wrong description, Yes, they continued to try and bill me for jobs I had not
as well as not what I asked for. Some were sought after and to bill for new membership I did not
sent in by 8 year olds and not vetted at all. authorize or want. Bigger than Bernie Maddoff.
When I would contact homeowner, they
didn't have a clue what I was talking about,
most didn’t even have plans or a starting
timeframe.
Leads that should be $15 leads come
through as $75 leads almost every time.
The leads are submitted for credit and
automatically denied for multiple reasons, I have even had customers specifically search for my
usually because HomeAdvisor could not company, find the HomeAdvisor ad, and get redirected to
569 NY
contact the person on the phone (even other companies because I have my leads paused or I was at
though the details usually describe the my monthly advertising limit.
correct category that the lead should be
listed under in the original request that the
customer submitted). I spent at least an
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They would send me leads that would not When I called to get a refund they played dumb, they said I
return calls. still have to pay because they sent the lead and there is
Some of the people I called were wrong nothing they can do.
numbers.
572 NY
Others would call me and when I was done I called to cancel, when speaking to them they refused to
talking to them, HomeAdvisor would send refund my money. They said they would give me credits for
the lead info after 10 minutes and charge leads which they never did and every time I called they
me. would say they had no idea what I was talking about.
We were charged for many leads, but in
many cases when we contacted the
573 NY homeowner, which was always
immediately, we were told they already had
another plumber there.
False names and addresses. Claims they
574 NY
will credit but they won't
I had my account setup for service requests
and installs. The install leads were
I was going to terminate the account but then found out I
575 NY inaccurate, I had homeowners tell me they
would lose all my reviews.
didn't fill it out or that the job was done
months ago.
HomeAdvisor was generating and charging At the very beginning of my service with them I started
me for leads that were not serious, qualified noticing charges for leads that I did not service so I call
and/or project-ready homeowners. They them and I said that if they continue charging me for leads
were always giving me leads with wrong or that did not work I will cancel my account and they give me
576 NY
disconnected phone numbers and contact a credit for...now they don't want to cancel my account and I
information; persons who never even heard have to pay them more than $2,000.00 for leads that I did
of HomeAdvisor; contacts for homeowners not work for. I took my credit card from their files
that were not the homeowners any more. (website) and now they are sending me to collection for
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the leads.
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sales, etc.
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simply don't answer and never return the authorization or request from me. After a month, my
call. account accrued almost $3,000 worth of leads. They
basically ignored my spending limits.
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leads.
5. HomeAdvisor continued to charge for each lead (as they
call it) / generated email, even though we did not approve of
accepting them.
6. HomeAdvisor is demanding full payment for each of
these generated emails in the amount of $2400, even though
we did not make contact with any of these leads and had no
prior knowledge that there would be a cost for each email.
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customer.
The leads sent to me where either not
available, wrong number, or no one
594 NY
answered or the job they needed done
wasn't my specialty.
Just received a lead from HomeAdvisor
from a fellow who never contacted
595 NY HomeAdvisor. He thinks they got his
information from the Internet. He did not
contact HomeAdvisor in anyway.
Unanswered leads and leads for tasks not
596 NY
provided.
Getting charged for really awful bad leads
and won’t get credited for them, like some
597 NY with bad numbers and no response scam
profile. I had 2 leads when people are
asking if I have a job available for them.
I tried to get credited for leads that were not real job leads
and was denied every time. One of the worst experiences
Customers did not want a phone call or
was when a competitor put in a request for a quote and used
never intended to do any work. They were
598 NY their own work email address. I was able to trace it to their
misled as to what they were filling out. I
website and informed HomeAdvisor that this was
was also given bad phone numbers.
competitor testing the system and they still refused to give
me credit even after I have them all the information.
Most leads are unreachable, every time you
try to get a credit it is a 40 minute phone
599 NY call. I received a lead with no address, just
a name and a town, the rep said I would not
get credited for it.
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Ask HomeAdvisor to stop sending leads They admit they charged me when I asked them to stop but
616 OH
but they still did. still they will not drop charges - they keep adding more on.
Over 50% of leads are problematic, refusal
of obvious credits. When I simply
questioned them about it they turned my
leads back on without my permission, they
They have refused to refund my membership fee of $287.99
sent me the most expensive lead type with a
despite the fact that they chose to terminate the one year
617 OH disconnected phone number, and then
membership after just one month (I had leads off for 2
terminated my membership without my
weeks of that because I was losing so much money).
permission/request.
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being billed to me. Never credited any wrong doings they did.
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had up to 4 leads in 1 day sent totaling over homeowner, but they offer the option of "can't connect to
$250. I was led to believe the credit request homeowner after several attempts" on their website. After 4
offered by HomeAdvisor was an automatic credit request I have been denied ALL of my requests even
procedure for contractors that either don't after I have explained that some of the customers said they
come in contact with home owner, never submitted anything to HomeAdvisor and to stop
homeowner is not interested in having contacting them.
work, wrong no. etc.
I keep my leads mostly turned off and only
turn them on when I need a quick job, but
one out of four leads is a no answer no
response. In fact, I just talked to a fellow
667 PA that I got a lead from HomeAdvisor for a
bathroom remodel for $70 and he had no
idea what HomeAdvisor was or never
contacted HomeAdvisor in anyway, so I
know there's fraud going on.
I asked [the HomeAdvisor salesperson] the
range anywhere from $10 per lead and it
began to charge me $20 and then $15...I
was getting these leads from people
expecting me to do the work for free or
never returning my calls back. In some
cases the leads said that they had gotten
668 PA somebody already when I called the lead
right away. I couldn't understand how they
could have got somebody already and in
many cases they never called and then I
would follow up and will not return my
calls and then I was getting charged from
competitor testing this system and even my
daughter at my house went online to see my
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When we call and try to get credit for leads often times the
reps will give us a hard time, refuse to enter the notes as we
requested and then the lead will be denied, the
HomeAdvisor rep will argue with us, and in many cases,
hang up the phone on us because we requested to speak
with a supervisor.
I would not put anything past this company, they are thieves
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and do everything and anything they can to rip you off and
then blame you for their wrong doing.
When you would google my company name it directs you to
HomeAdvisor.
Half of the leads I could never get a hold of
688 PA or the people didn't even own the home the
They would not stop taking money out of my account after
wanted me to quote prices for.
multiple times of telling them to stop. I actually had to
cancel the credit card and now they sent me to collections.
...without my knowledge they charge $60.00 a month for
mHelpDesk. I've lost $4500.00 from these scammers.
Charge for leads that I never took except
689 PA
for one. Their business numbers are rerouted to HomeAdvisor's
number. Customers that aren't using HomeAdvisor are
being rerouted to their number.
Several leads would not answer or return
phone calls. Several of the same type of They would not allow me to access my website that I
690 PA leads would come through on particular purchased through HomeAdvisor after my membership was
days, it was as if HomeAdvisor had terminated.
someone generate fake leads.
I would have leads come in that were for
disconnect phone numbers, customers who HomeAdvisor advertises their phone numbers using
did not own the home, people who were contractors’ names and work. During the seasons when I
simply "price shopping", or leads outside of have a larger budget with HomeAdvisor, I receive at
my areas or designated scope of work. HA minimum 5-12 calls a week from homeowners who find
replied that the homeowners fill out the "my number" online and in reality it is HomeAdvisor's
691 PA
lead contact criteria and that they could not phone number that appears first in a google search for my
credit me back for bad phone numbers and company's name. So when a potential customer thinks they
that I should quote the work anyway even if are calling me, they are actually being routed through
the person did not own the home yet... so HomeAdvisor and I am being charged for HomeAdvisor to
that upon settlement I would be the first do nothing.
contractor in the door.??? I would estimate
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areas and also "market match fees and exact match fees." I
initially spoke with a Tanya, customer service rep on
signing up with HomeAdvisor and was led to believe that I
would pay a $7.00 lead fee. Not True.
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that my contract with them was until October 2018, and that
my information would still be there. This presents a liability
to me, as I own a franchise under a corporate title, and
HomeAdvisor now has the ability to use our name to either
benefit or detriment.
(1) using heavy-handed and coercive means to solicit new
members for Membership Programs;
(2) blatantly disregarding Home Service Professionals’ lead
parameters and budgets;
(3) adopting uniform internal procedures intended to deny
697 PA Bogus leads
and discourage refunds and/or lead credits.
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money for leads and want the account cancelled." The next
morning, we had a bunch of leads in our inbox and they
charged us again. I called customer support and got a
supervisor on the phone after 45 minutes and that supervisor
told me there was no records that I ever tried to cancel the
account. At that point I started getting rude with her and I
told her customer support lied to me and she said she could
not cancel because I agreed to allow the customer support
person to waive the subscription fee, which I did not. She
also told me that I was "supposed to pause the leads after
receiving my 5 free ones" which was never even mentioned
to me by Betty, the rep I talked to the previous night. She
said she would not credit me for the leads and that she
couldn't cancel my account. After threatening to speak to
an attorney and filing a report with the Attorney General's
office, I asked her "will you cancel my account now?" and
there was a long pause after which she said "it was
cancelled." However, it is still open and they expect me to
keep pausing the leads every month which I am not willing
to do.
I was being charged for leads when they were to be turned
700 PA
off by my salesman.
From the first day. No returned phone messages, lied to by
our main sales man, David Right. He said he would credit
our account $100 and deducted from the credit and billed
our bank account the same. When we did get someone on
Out of the 7 leads that were forced on me,
701 PA the phone, they acted like they had no idea what the
only 1 person even replied back.
problem was and were very, very rude. I have been turning
my leads off manually since the first week to prevent from
getting billed for fake leads that I didn't want. I have been
trying to get someone to delete my profile and account info,
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I have received leads that were from renters I clearly remember having an associate showing me the
to repair window damage, which I asked mHelpDesk, and asking for a credit card to charge for the
HomeAdvisor to refund the lead, only to be service, which I declined. I was first told it would cost
705 RI
told that "sometimes the landlord gives $60/month, but the associate who was showing me
them permission, so we cannot refund the mHelpDesk said it was $120/month. It was in March of this
lead." year I noticed the charges and complained.
I was told that I could take the leads when I wanted. I
explained that I wasn't ready to start for a couple weeks. I
was busy at the time.
They started to send emails. I didn't open them because I
wasn't ready to start. The next thing I know, they are taking
money out of my bank account.
I have only looked at one lead, I couldn't figure it out. I tried
to contract someone with customer service, but couldn't get
706 RI through.
I have not even opened any more of the emails in fear that I
would be charged for the lead.
It was not explained to me that every time they sent an
email, I would be charged.
It cost me the signup fee of $287.99, plus they have taken
$725.94 for emails that they sent me.
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lead that had anything to do with lawn care the full amount that they charged me. I told them I wanted
or landscaping services that we offered. my refund since I was told by 2 different people that I
would be getting it but the customer service rep told me
they do not give refunds for incorrect leads and I would not
receive a refund but I was welcome to cancel my account
but they would not refund me for the membership fee.
They got me for $600.00 + in 3 weeks.
711 SC Help! I'm a small company. I have no
money. It’s a rip off.
...I was told I could just pay for the membership to have my
name listed, I specifically told them I didn't want leads if it
was going to cost me…
...Before I became a member, the salesman
...it was difficult to terminate my membership with
stressed how much of demand it was for
HomeAdvisor. The customer service representative tried to
my business in my area. He mentioned
bribe me into keeping my membership and offered to give
712 SC there were so many leads and at the end of
me free leads if kept my membership. HomeAdvisor took
the day I received 3 leads during my 7 days
over $550 out of my personal account, leaving my account
as a member. I was charged $25 per lead
with a negative balance. I was unable to contact the 3 leads
and I couldn’t even contact them
that they provided. I was a member for 7 days and was told
I could not redeem a refund. Their services did more
damage to me than helping. I lost money and made
absolutely none using their service.
Leads with bad information and or wrong
713 SC person and still getting charged for it.
Being charged for services we don't offer.
Expressed numerous times how unhappy I
...they did not want me to terminate. They kept taking
was with leads that did not answer the
money out of my account and sending leads until I changed
714 SC call/text message. Many leads never called
my bank card on file with them and they turned me in to the
HomeAdvisor and many leads weren't
credit bureau.
ready to have the project completed.
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Many leads are false leads, i.e. they are sent they always exceed this target. They tell me it's due to
from people who have no intention of programs I am enrolled in like "Instant-Connect" which
completing work or the owner has already generate leads outside of the target budget I set. The issue is
had the work done and didn't even submit I NEVER signed up for this program or other programs that
the lead. Or the contact information is bad behave similarly.
and you can't get in touch with the
homeowner. Other times, a renter is
accessing HomeAdvisor to get maintenance
work done and can't legitimately approve of
work done to a home they don't own. The
issue is that HomeAdvisor won't refund the
leads based on any of these reasons and we
as contractors must pay for them. It's is
fraudulent at best.
In some cases the mortgage companies,
such as Green Sky and Quicken, would
automatically get a price through
HomeAdvisor's system. This ensured that
726 TN the home would sell because the roof gets
inspected and you just worked for free.
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wait on hold for long times. The rep fights you on every
request and then agrees to credit you, but never does. This
requires another 2 hours of hold and conversations that get
nowhere. Currently they went into my bank account, took
$811, and overdrew my account. I called my bank and they
reversed the charge, only to have them take it out again a
few months later.
One time I had a customer verbally tell me that the
HomeAdvisor representative put his name in for several
different contractors to call him about different jobs that he
had no interest in doing. Apparently he had a conversation
I have received leads from a person named with the HomeAdvisor representative in which the Home
Josh Cantwell. There was something Advisor representative made the comment that he should
suspicious about this lead. I got the same get quotes for several different types of job on his new
lead again. Then I got it again. So I did a home since it doesn't cost him anything to get these quotes.
little detective work and found out the guys The customer said he had all kinds of different contractors
is a Senior Marketing Agent for a company calling him and he was only looking for one specific type of
called E.W. Scripps Company. The last work to be done, but he had plumbers and roofers and air
time I got the lead, I pulled the phone condition people calling. He seemed very irritated and he
728 TN
number and two names came up, Josh stated that he was frustrated and that the Home Advisor
Cantwell and Timothy Richardson, both representative said they had a quota to meet.
from Morristown, Tennessee. The phone
number is a throw away type phone. I had a customer tell me they submitted their information
for my company, left a message and it was not our
We have had suspicions of false leads being company.
put in over the last year that's why we keep
pausing our account. We have a customer named Maise that told us she
specifically requested us and went on a HomeAdvisor
online ad and requested our company to call her. When she
clicked through, it gave her a number and she called it and it
was not our company. She did not realize that right away
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3 or 4 days after I signed up I found out I ...Now they say I owe $200 more. I called and called was
758 TX
was getting charged for leads...they charged assured it was taken care of, now it's in collections
me $200 so I cancelled. Most leads never
answered the phone or called back...
Countless calls came in (my brothers
company) with wrong return numbers
and/or people not ever needing/signed up
759 TX
for the service. Countless others had
already been contacted hours earlier by
another provider.
Dead phone number old lead customers not
760 TX ...long hold times followed by disconnecting me
really interested in speaking to pro
Most of leads are fake by a contracted
person to them.
...this company is still contacting me no matter how I
There is a lady or couple of men who have refused, with bad manner and attitude on the phone. Last
761 TX
the same voice over and kept changing the time I terminated the account and still trying to charge some
name and called me and said there are jobs more ($60).
when there is not. Charged for all of these
leads.
[We have] specific qualifications for
remodels we do i.e. we only deal with
762 TX
homeowners, we have a $10k minimum
before considering a project. I told Noreen
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don't offer and 2 for ancillary services. Of on the phone that I had one month to try the service and I
those 7, I won the 2 ancillary services. could cancel if I was not satisfied.
The leads that I was given were for I attempted today to cancel via live chat on their website.
customers looking for free roof inspections After a 15 minute wait, the chat representative told me that I
from roof contractors and repair service would hear from someone within 48 hours or I could call
people. I am a home inspector. Roof and speak with someone today. I called and spent 45
inspections are a service that I offer, but minutes arguing with a representative. At the beginning of
they are paid services as a 3rd party to a the call I told him that I wanted to cancel and wanted a
dispute or as an unbiased opinion of the refund. 45 minutes later, debating the merits of their service
condition of the roof. HomeAdvisor argued and how I was not delivered the product I was sold, I flatly
the validity of the leads and refused to told him that nothing would change my mind. It was at that
refund the charges for the leads. After point he became somewhat hostile and short, told me he
multiple calls and hours on the phone, I was would cancel my membership but that I would not get a
finally able to receive credit for the bad refund as promised by my sales representative and by other
leads. representatives that I spoke with.
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32 Total calls
6 Made contact with potential customers
2 Real Customers
I started having issues with the first 2 leads I was received
on 9/8, not being services I offered or the customer had put
in the comments not to be contacted. I called my
HomeAdvisor consultant on 9/8 to report the problems, the
HomeAdvisor consultant said to give it some time (stall
tactics) and that my leads and my profile needed to be
tweaked. I called on 9/12 after another weird lead about
yard clippings and the customer not wanting to be
contacted, my HomeAdvisor consultant was unavailable so
The very first lead was for a certified I left a message and told her that I did not like the leads I
fiberglass remover a service I do not offer. was getting and that something wasn't seeming right, she
called me and told me that the system needed more time to
The second lead in the comments was listed sync with my profile. The on 9/13 I received a lead ($75
do not call me I will call you when I'm fee) to clear a parking lot for a strip mall, something else I
775 TX
ready. don't offer. I called her again and no answer, so I messed
around on the app and asked for credit back for this lead and
The rest of the leads were either work I did it was denied...She finally called me on 9/15 around 3pm
not do or I could not get in contact or and I told her this is not what I wanted and I wanted my
people didn't want to be contacted. money back she said talked me into trying a few more leads
to see how they worked out. I took another lead on 9/16 at
7:02pm and immediately started calling the customer no
answer. I called 3 more times that night no answer. I called
the next morning 9/17 I called the customer 3 more times
and finally someone answered and said that they weren't
interested and had already found somebody. I emailed my
HomeAdvisor consultant on 9/17 and asked for a complete
refund and that their practices are deceptive...I called the
afternoon 9/18 and spoke with her and she told me that they
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money. listen to their 800 # you'll hear things like “contractors say
70% of leads turn into sales." FALSE ADVERTING -
which you don't find out until after the collect $350+ from
you.
Bad information, vacant homes, jobs done
3 weeks before my company received the
lead, lead credit denied, reviews not posted
780 TX
after 6 months of finish the jobs, terminated
once without a chance to defend myself
after a false complaint
Never accepted any leads. Yes, I had major difficulties
terminating this and with no refund for anything. They
credited me money from leads but they don't give it back
I do know one person that did not use
even though it was taken wrongfully. They lied and also
HomeAdvisor but somehow HomeAdvisor
never told me how it worked. This site is a pyramid scam
781 TX ended up with their information, which they
and it is wrong. Know other plumbing company owners
had never filled out and never asked
that also received the same leads they sent me.
HomeAdvisor to do anything for them
Everything that was mentioned in the class action is the
same things I have dealt with.
I was contacted by a now client who said my company is
still listed but she didn’t want to put her info in then get a
782 TX bunch of calls and emails so she went to my website and
called me directly. This was 3 weeks after cancelling Home
Advisor.
Called leads as soon as they came in, as
told by HomeAdvisor, people at residence
not homeowners nor could do ultimate They did not budge at all on crediting leads and sent us to
783 TX
hiring. Another was looking for service collections.
other than what we offer and a bunch of
other dry/dead leads.
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1. The first lead was for tile installation, a 2. Chris Nigh told me HomeAdvisor member vendors'
service I do not offer. "stick rate" was over 85% year after year.
814 TX 2. The second lead was for carpet cleaning. 3. Chris Nigh told me he could not sign up a corporation. I
I called and texted the customer, and called told him MasterServ Inc. would not do business with
the customer's place of work. No answer, HomeAdvisor, in that event.
and no return call/text.
4. I told Chris Nigh I'd need to submit a corporate resolution
before we could do business.
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The contractors are very frustrated with these bad leads, and
I ( the consumer) are also frustrated that I continually get
these useless calls. Several contractors say they experience
the same thing all the time and wish they would not waste
time/money on bad leads.
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contractors.
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Regular spam leads sent for a service I Found my company name on other websites with a
never provided completely different phone number which I found to be
registered to HA
Phone number given out to other spammers
saying they got my number from
HomeAdvisor
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just doing market research price, phone They are threatening to ruin my credit report. I have been on
numbers to organizations looking to get a the phone for multiple hours trying to dispute charges that
quote from a professional to go for a job, were never refunded. They are a big scam and do not care
basically false leads and fail to give me a about the contractor. Colorado is in a different time frame
refund. They sent me leads that were sent to and they do not consider the time frame they submit these
multiple contractors and still charge me. I leads to contractors. Most leads were submitted to me after
go to the customer and there is multiple hours that I was not open for business.
HomeAdvisor contractors.
I had to call to change info to my company many times.
They claim to put my company on their website but every
time I looked on their website I never found my company. I
would call them and it will show up and then disappear
again. I would see my ad on their website with different
phone numbers.
No one ever answers the phone. If you do
happen to reach someone, they say it was
849 VT
by mistake or they weren’t really interested
in the first place.
I was told I would get about 3 leads a day.
I was given 44 leads in 12 days. 2 of which
were homeowners who claim they didn’t
use HomeAdvisor service and have no idea
how I got their number from them. About
5 disconnected numbers, and a whole lot of
850 WA
$48 carpet leads that were only one room
jobs totaling less than $100....I have paid
over $1400 and only got 1 solid lead from
them and zero jobs. Also have been refused
any refund for any lead or my membership
or my $750 lead bundle.
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HomeAdvisor.
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for a full bath remodel. nothing happened it continues to play music and nobody
ever called me back.
...they charge you for every phone call they make. They are
deceptive on phone calls.
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Experiences with HomeAdvisor
several times and they said they'd "credit exactly they did intend to send me some sort of
back the account" however, this did not confirmation that this account has been canceled and he said
happen. We later realized that they only he would send me a personal email stating the account has
apply credits to our HomeAdvisor account been canceled. He did send me an email, which I saved, but
to be applied to future lead charges...This is this does not seem very professional to me.
clearly a shady company taking advantage
of small business owners. We lost $490.91
in one month with zero actual matched
leads.
Approximately 80% of the leads were not I could see the train going off the rails fast with billing,
874 WA
per my agreement with HomeAdvisor. bogus leads, non-responsive service, etc.
Constantly receiving bad leads and charged
875 WI for them and unable to receive a credit for
them.
We are not a member. Just being harassed to become a
member. For almost 2 years HomeAdvisor has continuously
called the cell phone of the owner of our company as well
as the main office number. We have blocked the number
from our office but the calls come in to the cell phone from
different numbers making it impossible to completely block.
We've asked to not be contacted. We've asked to be taken
876 WI
off their call list but to no avail they call. We get emails
and when we try to "Unsubscribe" we get routed to their
website and aren't able to unsubscribe because the site states
"You are not subscribed to any emails at this time." It's
extremely frustrating and they should be held accountable to
the same rules as other companies. We will also file a
complaint with the National Do Not Call Registry.
I had a $350.00 spend limit, they kept on
They took out of my card without permission and caused
877 WI sending leads over my spend limit and the
my account to go negative.
leads were all no good!!!
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Experiences with HomeAdvisor
The other complaint/inquiry I would have I asked if I had ever agreed to those terms and conditions
with HomeAdvisor, is I have a suspicion and she said that by using the website and opening the
879 WI that they are obtaining leads wrongfully. emails, I agree to those terms and conditions by default. I
We noticed a few of our business listings obviously disagree with those business practices and find
online that had the HomeAdvisor phone them to be deceitful.
number. When I would call that number,
the HomeAdvisor rep would answer the
phone saying 'Thank you for calling Green
Oasis by HomeAdvisor, how can I help
you” (or similar). Isn't this false
representation?
Several leads that we have called and called
880 WI no reply. Then HomeAdvisor won't refund
the lead fee.
When confronted over their less than
optimal leads and the scatter shot leads they
agreed to reimburse me...with an internal
881 WI
credit. To say the least I wasn't satisfied
they agreed to give me about a $300 credit
and I suspended the account as long as I
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APPENDIX II
Compilation of Postings from GlassDoor.com
(1) “Sales reps are encouraged to stretch the truth to get one call closes [sic]. i.e. in weekly
training meetings they will have you listen to call from a top rep. you hear people stretching
the truth all the time, and managers running the meeting just say “stay away from using that
term, try this instead.” Yet that top rep still gets the sale after it has gone through quality
assurance somehow.” “Inside Sales” (entry dated May 15, 2016);
(2) “You’re taught and expected to bend and omit the truth. For example, you’re expected to tell
every prospect that there are a certain amount of leads available in their city even though it’s
usually not true.” “Shady practices” (entry dated February 9, 2016);
(3) “The managers will brag about how much they make and how good they are at committing
fraud.” “Online Marketing Specialist/Outside Sales/Inside Sales” (entry dated April 22,
2016);
(4) “They provide a script full of half truths that they expect you to steam roll the customer
with.” “It’s just a numbers game with them.” (entry dated March 13, 2017);
(5) “I was asked to lie to customers on several occasions.” “Brutal” (entry dated February 11,
2016);
(7) “Not a lot of integrity across the org -- reps are incentivized to find loopholes and do
whatever they can to make sale…Back-end ops cannot keep up with sales growth – product
does take advantage of many of the clients they purport to serve” See “Fan for a call-center,
but don’t be fooled into expecting more.”
https://www.glassdoor.com/Reviews/HomeAdvisor-Reviews-E11291.htm (entry dated
October 11, 2016) (last visited 4/26/18);
(8) “Target business/contractors that can little afford their services…Sales is told to sell by
revenue target -- leads pour into customers account--credit card automatically charged.
1
Source for (1)-(6), https://www.glassdoor.com/Reviews/Employee-Review-HomeAdvisor-
RVW8965054.htm (last visited 4/26/18)
1
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(9) “Possibly one of the most insidious business strategies in the U.S. Get your pro customers to
pay for bogus leads, create extensive Fear & Loathing among them, manipulate everyone
& instigate false confidence in your customers [their clients] while ripping everyone off.
Incredible !” [sic]. See “The Art of Scamming your workers & customers, a Meta-Twofer”
https://www.glassdoor.com/Reviews/HomeAdvisor-Reviews-E11291_P3.htm (entry dated
October 1, 2016) (last visited 4/26/18);
(10) “I really think this is a terrible company for what they do to their clients they lie to you to
tell contractors they are giving the leads they are selling up to 3 other contractors in their
area and really is [sic] is much more and they charge up wards [sic] of 60 dollars for each
lead.” “Stop telling people they are doing a good thing when you know that you are ripping
blue collar companies off!!” See “HomeAdvisor Monkey”
https://www.glassdoor.com/Reviews/HomeAdvisor-Reviews-
E11291_P17.htm?sort.sortType=OR&sort.ascending=false (entry dated October 27, 2015)
(last visited 4/26/18); and
(11) “Selling product primarily to contractors who cannot afford it, and who receive bad-
quality ‘LEADS’ [sic].” “The entire situation is a racket. They are stealing money from the
poor schmucks who sign up. Don’t coach your Sales Reps to sell through fear, and to ‘omit’
crucial facts to the customers signing up. That’s the same as lying.” See “Only Good for
Putting Cold-Calling On Your Resume” https://www.glassdoor.com/Reviews/HomeAdvisor-
Reviews-E11291_P20.htm?sort.sortType=OR&sort.ascending=false (entry dated March 12,
2016) (last visited 4/26/18).