Millions of consumers turn to Angie’s List, part of Denver-based ANGI HomeServices, for help with home repairs and other services. But The Consumer Federation of America (CFA) warned Monday that the contractor recommendations consumers receive come with a tool belt full of conflicts.
“If you use Angie’s List, ignore their recommended companies,” advised Stephen Brobeck, a senior fellow at the CFA and co-author of a report on the company, the first in a series on service providers the group is conducting
Angie’s List, founded in 1995 and based in Indianapolis, relied on a subscription model before IAC bought the company in October 2017 and merged it with HomeAdvisor. IAC shifted to an advertising model that gives preference in website placement and in referrals to businesses or “pros” who have paid the company money.
Only advertisers are described as “top-rated pros,” and they are always listed ahead of those contractors who don’t advertise, Brobeck said. Three to four pros, always advertisers, are given a consumer’s contact information when a request for referrals is made.
“When possible, consumers should rely on nonprofit organizations that evaluate businesses and are not funded by the companies they are evaluating,” Brobeck said.
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The vast majority of businesses on Angie’s List have an A grade, including those with five or fewer ratings and those who haven’t had time to establish a track record, Brobeck said.
While the ratings do screen out scam artists and fly-by-night operators, the CFA said advertisers are given special treatment when it comes to priority placement on the website and in dealing with negative reviews.
“It is incorrect to assume that because part of our revenue is generated through advertising that our reviews are anything but fair and impartial,” countered Mallory Micetich, a spokeswoman with Angie’s List.
Micetich said only businesses that pass a certification process can advertise and that advertisers must comply with standards of conduct or face removal from the site. The company denies that any businesses, including advertisers, are allowed to remove negative reviews and said it has strong safeguards to screen out fake reviews.
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As to the ratings, it is the customers who provide the grades, not the company, Micetich said. Consumer contact information is provided to available pros only after customers have agreed to opt-in for direct outreach.
“We are steadfast in our dedication to helping homeowners find quality pros to care for their home,” Micetich said.
If they don’t have access to an independent review site, like Consumer’s Checkbook, the millions of reviews Angie’s List has built up over the years can be a valuable resource to consumers, provided they are used properly, Brobeck said.
The key is to only go with service providers who have accumulated 25 or more reviews, to read those reviews carefully and to contact pros that stand out instead of relying on the advertisers Angie’s List has selected, he added.
