the Federal Trade Commission imposed multimillion-dollar fines on credit services company Credit Karma and leading home services agency HomeAdvisor, alleging that each company engaged in “deceptive” practices against consumers.
But both companies are fighting the federal agency’s claims.
In separate announcements Monday, the Federal Trade Commission ordered Credit Karma to pay $3 million for allegedly using “dark patterns to misrepresent that consumers have been ‘pre-approved’.” Credit card Offers”, and ordered HomeAdvisor to pay up to $7.2 million for allegedly engaging in deceptive marketing.
The FTC said in a press release that it first announced its complaint against Credit Karma in September, accusing the company of telling customers that they were pre-approved to get the cards and had “90% odds” of enticing them to apply for offers, in many cases, They were not qualified for it in the end.”
when i arrived before Fox Business For comment, Credit Karma was quick to dismiss the government’s allegations, saying in a statement, “We fundamentally disagree with the allegations made by the FTC in their complaint.”
“We do not engage in so-called ‘dark patterns’, there is absolutely no mention of this in our agreement with the FTC, and their suggestion is completely without merit,” a Credit Karma spokesperson said. “There are also no allegations that members paid fees or unexpected fees of any kind. We came into this agreement with the agency simply to be able to maintain our focus on helping our members find the right financial products for them.”
The FTC said its order against HomeAdvisor — a subsidiary of Angi, the company formerly known as Angie’s List — is preliminary, and stems from the agency’s original complaint in March 2022 accusing the company of making “false, misleading, or unsubstantiated” claims. about the quality and sourcing of the leads the company sells to service providers who are looking for potential clients.”
The committee voted 4-0 to accept the proposed consent agreement against HomeAdvisor, and will now accept public comment on the decision for 30 days before deciding whether to make it final.
HomeAdvisor also defended itself in its exclusive statement to FOX Business, saying “We’ve been in business for over 20 years and will never deceive or defraud anyone, let alone customers.”
A company spokesperson said the FTC announcement simply related to a settlement agreement that did not acknowledge or find any wrongdoing. They noted that the FTC complaint cited eight recorded sales calls as purported evidence of alleged misrepresentations, and if the case goes to trial, HomeAdvisor is willing to refute those few calls with “thousands of absolutely accurate calls.”
“We’ve earned the privilege of becoming the trusted partners of hundreds of thousands of local plumbers, roofers, general contractors and electricians — the people who help protect Americans’ greatest asset: our homes,” the spokesperson added. “Finding homeowners and helping them get the job done well is the daily work of our team members, and you won’t find a company that works harder than Angi’s with the American Home Service Professional.”
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