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The Federal Trade Commission ( FTC ) and New York ’s attorney general haveaccusedHandy , the gig app customers can practice to leger dry cleaners , handymen , and more , of make deceptive claims about how much proletarian could earn through its platform .
In acomplaintfiled on Tuesday in the U.S. District Court for the Southern District of New York , the FTC and the NY attorney general aver that Handy , which is owned by Angi ( formerly Angie ’s List ) , advertise wage that “ do n’t reflect the reality for the overwhelming absolute majority of workers on the platform . ” Handy also failed to clear disclose fee and mulct , the complaint say , lead to millions of dollars being withheld from workers .
Handy has tally to settle down — but not admit any fault .
“ [ Handy ] relied on inflated and simulated pay claim to entice worker onto its weapons platform , ” Samuel Levine , director of the FTC ’s bureau of consumer protection , say in a statement . “ It then deducted inadequately disclosed fines and fees from their reward . ”
According to the complaint , Handy marketed its platform as a path to get ante up for jobs immediately . But its ad did n’t mention the fact that workers have to pay a fee — and in some cases , complete another job — to unlock the fastest payouts . ( By default , it take around a hebdomad to get compensate for a Handy job . )
Handy also set unreasonable anticipation about earnings , the FTC and NY attorney superior general aver . In New York , New Jersey , and California , the app ’s ads blow pay up to a pace only approachable to workers in its highest pay tier , which requires meeting hard - to - ambit measure . In other markets , Handy advertised wage for handyman and piece of furniture assembly Job as high as $ 45 an minute , even when more than 90 % of doer on the platform made less , per the complaint .
Moreover , Handy bear down many workers unintelligible fine , the FTC and NY attorney superior general say — including mulct incurred through no fault of workers . According to the complaint , a hemipteron in Handy ’s system resulted in jobs not being by rights canceled and thousands of worker being fined $ 50 . Workers could only avoid that mulct if they took steps such as give GPS license to Handy ’s app and waiting more than 30 minutes at a problem site .
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fee can be specially punishing for gig worker like those who swear on Handy as a primary source of income . In a 2022surveyby the nonprofit Economic Policy Institute , 14 % of gig workers report realize less than the federal lower limit earnings . One in five tell they ’d travel thirsty because they could n’t afford enough to eat ; about one - third did n’t bear their entire utility Federal Reserve note in the month prior to the resume .
Handy itself has admitted that many of its worker are on public aid or live in public housing , accordingto an FTC press release .
In a settlement propose by the FTC and NY lawyer superior general , Handy would pay $ 2.95 million to return any workers harmed by the political platform ’s practices . ready to hand would also have to back up claims it makes about how much worker can potentially earn and make it clear how workers can avoid its fees .
In a program line , Handy pronounce it has agreed to the term .
“ Though we were prepared to sue , we chose to enter into an arrangement with these parties to put this matter to catch one’s breath and get back to putting our 100 % focal point on bear our customers : the minor businesses who help Americans care for and assert their homes , ” a spokesperson told TechCrunch . “ None of the representation ’ allegation were fair , and this colonisation should in no way be construed as a proof of their allegations . ”
