FTC fines Credit Karma, HomeAdvisor $7.2 million in consumer deceptive practices

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FTC fines Credit Karma, HomeAdvisor $7.2 million in consumer deceptive practices

The Federal Trade Commission slapped multi-million dollar fines on Credit Karma and home service lead agency HomeAdvisor, alleging that the companies each engaged in deceptive practices against consumers.

Both companies are pushing back against the federal agency's claims.

In separate announcements Monday, the FTC ordered Credit Karma to pay $3 million for allegedly using dark patterns to misrepresent that consumers were pre-approved for credit card offers, and ordered HomeAdvisor to pay $7.2 million for allegedly engaging in misleading marketing.

PHARMA BRO When reached by FOX Business for comment, Credit Karma quickly slapped down the government's claims, saying in a statement, We fundamentally disagree with the allegations that the FTC makes in their complaint. We do not engage in so-called dark patterns, there is no mention of this at all in our agreement with the FTC, and their suggestion is completely baseless, a Credit Karma spokeswoman said. There are no allegations that members paid unexpected fees or charges of any kind. We have reached an agreement with the agency to keep our focus on helping our members find the financial products that are right for them. The agency's original complaint in March 2022 accusing the company of making false, misleading or unsubstantiated claims about the company's services providers that it sells to service providers in search of potential customers has resulted in a preliminary order against HomeAdvisor, which is a company known as Angie's List. The commission voted 4 - 0 to accept the proposed consent agreement against HomeAdvisor, and will now accept public comment on the decision for 30 days before it decides whether to make it final.

HomeAdvisor said in its statement to FOX Business that they ve been in business for over 20 years and would not deceive anyone, let alone customers. A spokesman for the company said the FTC's announcement relates to a settlement agreement that does not admit or find any wrongdoing. They noted that the FTC's complaint pointed out eight recorded sales calls as purported evidence of the alleged misrepresentations, and HomeAdvisor was prepared to rebut that handful of calls with thousands of perfectly accurate calls. The spokesperson said that we ve earned the privilege of being trusted partners to hundreds of thousands of local plumbers, roofers, general contractors and electricians - the people who protect America's greatest asset: our homes. It is the daily work of our team members to find and help homeowners get a job done well, and you'll find no company working harder for the American home service professional than Angi.