San Francisco DA Settles With Angie's List Over False Advertising Charges
SAN FRANCISCO (CBS SF) -- San Francisco District Attorney Chesa Boudin announced Tuesday that his office settled with home services website Angie's List in a lawsuit over claims of false advertising.
The DA sued Angie's List back in 2018 over the site's claims that they perform background checks on the "principal/owner or relevant manager of all Certified Service Providers." According to the suit, filed by then District Attorney George Gascon, these statements are "likely to deceive" consumers into believing that the individuals coming to their homes have undergone a background check even when that isn't the case.
In a statement announcing the settlement, the DA's office said past customers will be compensated and the website will be banned from making similar claims in the future.
"This settlement protects consumers who make important safety decisions about whom to allow into their homes," District Attorney Chesa Boudin said. "Rather than providing accurate information so that consumers can make educated decisions about whom to trust, Angie's List's advertising misled consumers. I commend the hard work of our attorneys in bringing about this settlement to protect San Franciscans from further deception."
The almost 30-year-old site, which recently changed its name to Angi, agreed as part of the settlement to repay 50% of subscription fees to customers who signed up for its services while Angie's List was running the misleading ads: June 23, 2016, to Feb. 8, 2017. The company also entered into a permanent injunction that will prevent it from misleading customers regarding its background checks in the future, and will pay $50,000 in civil penalties for its unlawful practices.
Both parties signed the agreement Monday. Angi did not release a statement by press time.
