The Federal Trade Commission (FTC) and the New York Attorney General have taken legal action against Handy Technologies, a company operating in the gig economy under the name Angi Services. The company is accused of making deceptive claims regarding potential earnings for workers on its platform.
According to the complaint, Handy allegedly advertised misleading earnings figures that did not reflect the actual income for most workers. It also reportedly failed to disclose fees and fines adequately, resulting in millions of dollars being withheld from workers.
Under a proposed settlement, Handy would pay $2.95 million to provide refunds to affected workers and make changes to ensure clear consent is obtained for any fees charged. The company must also clearly communicate how workers can avoid fines.
"Handy Technologies relied on inflated and false earnings claims to lure workers onto its platform. It then deducted inadequately disclosed fines and fees from their wages," said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. "The order announced today puts a stop to these unlawful practices and ensures an honest marketplace for American workers."
New York Attorney General Letitia James emphasized that "New York workers deserve to be paid what they are promised, when they are promised." She added that apps like Handy's offer flexible job opportunities but cannot mislead workers with false promises.
The complaint highlights instances where Handy's advertised rates were significantly higher than what most workers earned. For example, advertisements claimed pay rates as high as $45 per hour for handyman jobs, while more than 90 percent of workers made far less—often over $20 per hour less.
Additionally, Handy imposed various undisclosed fines on its workforce. A particular issue involved clients canceling jobs without notifying the system properly, leading to unjust fines on workers who were not at fault.
To address these concerns, the settlement requires Handy to obtain explicit consent from workers before charging any fees or fines and mandates transparent disclosure of requirements or processes necessary to avoid such charges.
The FTC filed the complaint in the U.S. District Court for the Southern District of New York after receiving unanimous authorization from its commissioners.
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