Home services marketplace Angi agrees to resolve allegations it misled customers about background checks and contractor vetting.
Settlement includes restitution, revised disclosures, and enhanced consumer transparency measures.
Regulators cite Angi’s responsibility to correct claims that could mislead homeowners seeking verified professionals.
Home services platform Angi, formerly known as Angie’s List, has reached a settlement with regulators to resolve claims it misled consumers about how it screens and recommends contractors.
Officials said the company overstated the extent to which contractors were vetted and background-checked before being promoted on the site.
Investigators found that some consumers were led to believe Angi conducted comprehensive criminal and professional checks when, in many cases, those reviews were limited or delegated to third parties.
Settlement terms and consumer relief
Under the agreement, Angi will pay restitution to affected consumers, revise its advertising and disclosure language, and establish clearer guidelines to distinguish paid listings from organic recommendations.
Regulators said the company has also committed to ongoing compliance monitoring to ensure transparency in its contractor referral system.
The company did not admit wrongdoing but said it was pleased to “put the matter behind it” and remains committed to helping homeowners connect with qualified professionals.
Consumer advocates urge caution
Consumer advocates said the case underscores the importance of verifying contractor credentials independently, even when using well-known platforms.
“Consumers should never assume a listing equals a background check,” said one watchdog group. “It’s always worth asking for proof of licensing and insurance.”
What consumers can do
Ask for verification: Request written proof of contractor licensing and insurance.
Check references: Speak directly with past clients before hiring.
Review the fine print: Read disclosure sections on referral platforms to understand what screening actually occurs.