There is the FTC and the New York Attorney General accused simpleGig app customers can use to book cleaners, handymen and more to make fraudulent claims about how much workers can earn through its platform.
A complaint In a filing Tuesday in the U.S. District Court for the Southern District of New York, the FTC and the NY Attorney General alleged that Handy, which is owned by Angie (formerly Angie's List), earned revenue from ads that “do not reflect the reality for the overwhelming majority of the platform's employees.” Handy failed to clearly disclose fees and penalties, the complaint alleges, resulting in millions of dollars being withheld from employees.
Handy agreed to settle — but pleaded not guilty.
“[Handy] relies on inflated and false earnings claims to lure workers to its platform,” Samuel Levine, director of the FTC's Bureau of Consumer Protection, said in a statement. “It then deducted under-disclosed fines and fees from their wages.”
According to the complaint, Handy marketed its platform as a way to pay for instant jobs. But its ads don't mention the fact that workers must pay a fee — and in some cases, complete another task — to unlock the fastest payouts. (By default, a simple job takes about a week to get paid.)
Handy also set unreasonable expectations about earnings, the FTC and NY Attorney General alleged. In New York, New Jersey and California, the app's ads touted salaries up to accessible rates for workers at its highest salary levels, which required meeting hard-to-reach criteria. In other markets, Handy advertises wages of up to $45 an hour for handyman and furniture assembly jobs, even as more than 90% of workers on the platform reportedly earn less.
Moreover, Handy charged many workers opaque fines, the FTC and NY attorney general said — including fines for no fault of the workers. According to the complaint, a glitch in Handy's system resulted in jobs not being properly canceled and thousands of workers fined $50. Workers can only avoid those penalties if they take steps including allowing GPS on Handy's app and waiting longer than 30 minutes at a job site.
Fees can be particularly punishing for gig workers who rely on Handy as their primary source of income. In 2022 Survey By the nonprofit Economic Policy Institute, 14% of gig workers reported earning less than the federal minimum wage. One in five people say they go hungry because they can't afford to eat enough; About one-third had not paid their full utility bill in the month prior to the survey.
Handy itself admits that many of its workers are on government assistance or live in public housing. According to From an FTC press release.
In a settlement proposed by the FTC and the NY Attorney General, Handy will pay $2.95 million to reimburse any workers harmed by the platform's practices. Handy also needs to back up claims about how much it can potentially earn and explain how workers can avoid its fees.
In a statement, Handy said it had agreed to the terms.
“While we were prepared to litigate, we have chosen to enter into an agreement with these parties to put these matters to rest and allow us to focus 100% on supporting our customers: the small businesses that help Americans care for and maintain their homes.” A spokesperson told TechCrunch. “None of the agencies' complaints were justified, and this settlement should in no way be construed as validating their complaints.”