CLASS ACTION LAWSUIT FILED AGAINST HOMEADVISOR & IAC/INTERACTIVE

CLASS ACTION LAWSUIT FILED AGAINST HOMEADVISOR & IAC/INTERACTIVE

On July 19, 2016, Chimicles & Tikellis LLP (C&T) filed a class action lawsuit on behalf of Home Service Professionals against Defendants IAC/Interactive (“IAC”), a media and Internet conglomerate, and its operating business, HomeAdvisor (“HomeAdvisor”) (formerly ServiceMagic), for deceptive, coercive and unfair business practices related to HomeAdvisor’s lead generation services and purported benefits of Membership Programs.

According to the Complaint (click here), tens of thousands of small to mid-size Home Service Professional businesses operating around the country have been victimized by their association with Defendants IAC and HomeAdvisor, Inc. 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 purported “quality”, “project ready” and “qualified” Leads, which charges can range from $8 to over $90 per Lead. C&T alleges that in reality, and undisclosed to the Home Service Professionals, the Leads are not qualified or quality, and do not have the characteristics of being from “project-ready homeowners”, as promoted by HomeAdvisor. The Leads are comprised of: wrong or disconnected phone numbers; wrong contact information; persons who never even heard of HomeAdvisor; stale Leads; contacts for homes that were listed for sale; contacts for vacant or non-existent residences; and Leads that were sent to more than four (4) Home Service Professionals. Plaintiff seeks to hold Defendants IAC and HomeAdvisor accountable for their misrepresentations and omissions by obtaining injunctive relief and recovering monetary damages.

If you or someone you know is a former employee that has information regarding the lead generation processes and sales practices employed by HomeAdvisor, please contact Stephanie Saunders at 610-645-4730 or email ses@chimicles.com.