Class Action Filed Against HomeAdvisor & IAC/Interactive

Class Action Filed Against HomeAdvisor & IAC/Interactive

Chimicles & Tikellis has filed a class action lawsuit against Defendants, IAC/Interactive, a media and Internet conglomerate, and its operating business, HomeAdvisor (formerly ServiceMagic), for deceptive, coercive and unfair business practices related to HomeAdvisor’s lead generation services and purported benefits of Membership Programs.

HomeAdvisor is a nationwide home services digital marketplace that claims to help connect homeowners with persons and businesses in the HomeAdvisor network who provide home improvement services (the “Home Service Professionals”). While the service is free to homeowners, Home Service Professionals are required to purchase an annual membership in order to join the HomeAdvisor network, plus pay an additional fee for each lead. Defendants market HomeAdvisor’s lead generation services as providing Home Service Professionals with qualified business opportunities; however, C&T has alleged on behalf of Plaintiff and a class of Home Service Professionals that Defendants acquire, generate and charge Home Service Professionals for leads that are not from targeted, serious, qualified and/or project-ready homeowners. As a result, Home Service Professionals paid an annual fee to join a HomeAdvisor Membership Program and paid hundreds and thousands of dollars for leads comprised of: wrong or disconnected phone numbers and contact information; persons who never even heard of HomeAdvisor; stale leads; contacts for homes that were listed for sale; and contacts for vacant or non-existent residences.

Defendants’ deceptive and fraudulent practices do not end with the sale of bogus leads. In addition to maintaining and employing systemically flawed and deficient processes to generate leads, the complaint alleges that Defendants have adopted fundamentally unfair business practices in dealing with Plaintiff and the class of Home Service Professionals including, but not limited to, the following: (1) using heavy-handed and coercive means to solicit new members for Membership Programs; (2) concealing and omitting material information about substantial monthly fees for mHelpDesk, a startup, cloud-based field service software; (3) blatantly disregarding Home Service Professionals’ lead parameters and budgets; (4) distributing the same lead to more than four Home Service Professionals; and (5) adopting uniform internal procedures intended to deny and discourage refunds and/or lead credits.

If you or someone you know purchased a Membership Program from HomeAdvisor and have experienced any of the problems described above or in the complaint linked below, please complete the form below or contact the attorneys for this case.

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Attorneys for this case:

Nicholas E. Chimicles
Kimberly Donaldson Smith
Stephanie E. Saunders