IN THE SUPERIOR COURT OF THE DISTRICT OF COLUMBIA

Civil Division

DISTRICT OF COLUMBIA
a municipal corporation
441 4th Street, N.W.
Washington, D.C. 20001,

Plaintiff, Case No.:

v.
JURY TRIAL DEMANDED
HANDY TECHNOLOGIES, INC.
33 W. 19th Street
New York, New York 10011,

Defendant.

COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF

Plaintiff District of Columbia (District), by the Office of the Attorney General, brings

this action pursuant to D.C. Code 28-3909 for injunctive relief, restitution, damages, costs, and

civil penalties against Defendant Handy Technologies, Inc. for violations of the Districts

Consumer Protection Procedures Act (CPPA), D.C. Code 28-3901, et seq. In support of its

claims, the District states as follows:

1. Defendant Handy Technologies, Inc. (Handy) is part of a wave of new

companies that brandish themselves as part of the sharing or gig economy. Handy tells

consumers that through its webpage and smartphone application, it can provide access to vetted

and trusted professionals who will perform cleaning services at a consumers home. Although

Handy represents to consumers that its cleaning professionals are background-checked and can

otherwise be trusted with unfettered access to ones home, consumers have reported a pattern of
thefts by Handy cleaners. Handys advertised background-check procedures have also failed to

identify and exclude cleaners with criminal backgrounds.

2. In addition, despite advertising prices for single cleanings, Handy automatically

enrolls consumers into what it calls cleaning plans that include recurring charges. Consumers

are often unaware that they have been enrolled in these cleaning plans, finding out for the first

time when a Handy cleaner arrives at their door for an automatically scheduled subsequent

cleaning. When consumers try to cancel their cleaning plan, they face a confusing and difficult

task that requires them to navigate through various webpages and emails and are forced to pay

for cleaning services they neither wanted nor knowingly authorized.

3. The District institutes this proceeding to stop Handy from engaging in the

unlawful trade practices summarized above in connection with its offer and sale of cleaning

services, including its practice of (1) making untrue or misleading representations regarding the

safety and security of its cleaners; (2) enrolling consumers without their knowledge and/or

consent into a cleaning plan for recurring house cleanings; and (3) making misleading

statements to consumers about their ability to cancel their plans and receive refunds. The

District seeks injunctive relief to prevent Handy from engaging in these and similar unlawful

trade practices, civil penalties to deter Handy from engaging in these and similar unlawful trade

practices, costs and attorneys fees, and restitution for consumers victimized by Handys

conduct.

Jurisdiction

4. This Court has jurisdiction over the subject matter of this case pursuant to D.C.

Code 11-921 and 28-3909.

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 5. This Court has personal jurisdiction over Defendant Handy pursuant to D.C. Code

13-423(a).

The Parties

6. Plaintiff, the District, a municipal corporation that is authorized to sue and be

sued, is the local government for the territory constituting the seat of the government for the

United States of America. The District brings this action, through its Attorney Generals Office

of Consumer Protection, pursuant to D.C. Code 28-3909, which authorizes the Attorney

General to bring court actions to enforce the Districts consumer protection laws, including the

CPPA.

7. Defendant Handy Technologies, Inc. (formerly known as Handybook, Inc.), doing

business as Handy, is a Delaware corporation with its headquarters and principal place of

business at 33 West 19th Street, New York, New York 10011. Handy engages in the business of

offering and selling various home services, including, but not limited to, home cleaning services

in Washington, D.C. (D.C.). Although Handy does business in D.C., it has failed to lawfully

register to conduct business with the District of Columbia Department of Consumer and

Regulatory Affairs.

Handys Home Cleaning Services

8. Handy provides prearranged home cleaning services using a webpage

(Handy.com) and smartphone application (the Handy App) to connect cleaning professionals

with consumers seeking home cleaning services. Handy engages, and has engaged, in the offer

and sale of goods or services to consumers in D.C. for their personal, household or family

purposes, by offering and selling home cleaning services to D.C. consumers.

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 9. When signing up for cleaning services on either Handy.com or the Handy App,

consumers enter information, such as the number of bedrooms and bathrooms in the home, their

zip code, and the date and time that they would like the cleaning to occur to get a price quote for

a single cleaning. After receiving the price quote, whether signing up on Handy.com or through

the Handy App, consumers are automatically enrolled in a recurring cleaning program (cleaning

plan). Consumers are not given an option to sign up for a single, one-time cleaning or

otherwise opt out of the recurring program.

Handys Misleading Representations about Safety and Security Measures

10. Handys business model relies on persuading consumers to allow strangers to

enter their homes and have full access to their personal belongings. Handy acknowledges that its

model depends entirely on putting trust, safety, and security at the forefront of every decision

we make. In order to reassure consumers and create a sense of safety and security, Handy

represents to consumers that its cleaning professionals are fully vetted and screened. On its

webpage Handy.com, on the Handy App, and in advertisements and communications with

consumers, Handy expressly represents that its cleaning professionals are trusted, fully

vetted, background- and identity-checked, pre-screened, and top-quality. These

representations are designed to foster the impression that Handys cleaning professionals are

carefully screened and can be trusted not to commit criminal acts or otherwise threaten

consumers safety and security.

11. Handys representations leave consumers with the net impression that Handy

takes sufficient steps to ensure the safety and security of consumers and their personal property

by adequately checking the background of its cleaning professionals. Handys representations

are likely to mislead consumers to believe that its background-check procedures are sufficient to

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screen out individuals that either have a relevant criminal history or that are likely to steal from

consumers homes. In fact, Handy does not adequately check the background of its cleaning

professionals, and individuals with prior criminal convictions or that are likely to steal from

consumers have been accepted by Handy. As a result, numerous Handy cleaners have stolen

property from the homes of D.C. consumers.

12. For instance, one of Handys cleaning professionals was arrested and charged for

stealing credit cards from a Handy consumer in D.C. while performing cleaning services in

October 2015. The arrested cleaning professional has a lengthy prior criminal record with

offenses in Maryland, Virginia, and the District of Columbia. His criminal record includes a

2010 conviction for access device fraud, identity theft, and possession of stolen property; a 2005

conviction for theft; a 2005 conviction for petit larceny; a 2005 conviction for uttering; a 2004

conviction for shoplifting; and a 2002 conviction for unauthorized use of a motor vehicle.

Despite this criminal history, the arrested cleaning professional was accepted as a Handy cleaner.

13. In addition, between March 25, 2015 and June 3, 2016, twenty-four (24) D.C.

consumers filed police reports with the Districts Metropolitan Police Department alleging that

Handy cleaners stole property from those consumers homes.

14. Handys representations, both expressed and implied, about its safety and security

measures, including representations regarding background- and identity-checks and screening

procedures, constitute representations that Handys cleaning services have a certification or

characteristic that they do not have.

15. Handys representations, both expressed and implied, about its safety and security

measures, including representations regarding background- and identity-checks and screening

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procedures, constitute misrepresentations of material fact that have the tendency to mislead

consumers.

16. Handys failure to inform consumers that its screening procedure does not

(i) identify cleaners with clear criminal backgrounds, or (ii) effectively screen out cleaners who

are likely to steal from consumers homes are material facts, the omission of which tended to

mislead consumers.

Handys Misleading Scheduling and Billing Practices

17. Handy automatically enrolls consumers who schedule cleaning services into what

Handy refers to as cleaning plans. Cleaning plans work by automatically scheduling future

recurring cleanings when a consumer schedules an initial cleaning with Handy. Cleaning plans

are not simply an option that a consumer may select on the Handy webpage or on the Handy App

when scheduling a cleaning service. Instead, Handy has made cleaning plans the default option

for any consumer that schedules a cleaning through Handy. Accordingly, even consumers who

only want to schedule a single one-time cleaning for their homes are automatically enrolled in a

cleaning plan. In fact, there is no option at all for consumers to schedule a one-time cleaning

through the Handy webpage or the Handy App.

18. Consumers who navigate to Handys home webpage, Handy.com, will find no

information on the initial page, a sample of which is attached as Exhibit A, suggesting that

Handy only offers a recurring cleaning plan through its webpage. There are no advertisements

for cleaning plans, no description of cleaning plans, and no explanation that consumers may only

schedule recurring cleaning services through its webpage. Instead, Handys home webpage

creates the impression that consumers are only scheduling a one-time appointment. For

example, a central feature of Handys home webpage is a large hyperlink with the text Book a

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Cleaning, referring to a singular cleaning and not multiple cleanings. Handy also advises

consumers on the webpage to just pick a time and well do the rest. In its description of its

services on the home webpage, Handy further states that consumers need only to select the date

and time youd like your professional to show up. These representations all give the impression

that a consumer is purchasing a one-time cleaning service through Handys webpage.

19. As the consumer navigates through Handys webpage and attempts to schedule

(or book) a cleaning, Handy continues to misrepresent that the consumer is only booking a

single cleaning. After selecting the hyperlink Book a Cleaning off of the homepage,

consumers are brought to a second webpage, a sample of which is attached as Exhibit B, which

asks the user to enter information to Get a Price for a cleaning. The information requested

includes zip code, number of bedrooms and bathrooms, number of hours for cleaning, and

information under a heading When would you like us to come? Under that heading, the user is

asked to enter in a particular date and time for a cleaning. The user is not asked to enter in any

information to schedule recurring cleanings. There is nothing on this page that suggests one-

time cleanings may not be booked through Handys webpage or that consumers will be

automatically entered into a recurring cleaning plan.

20. Moreover, on the second webpage (Exhibit B), Handy offers consumers two

additional links to obtain information about the service they are purchasing. The first link,

entitled See whats included in a Handy cleaning, suggests the consumer is only purchasing a

single cleaning service and does not mention that the consumer is also signing up for a recurring

service. The second link is entitled Terms of Use and provides a long and detailed explanation

of the terms the consumer is agreeing to when purchasing services from Handy. In the Terms of

Use, Handy states When requesting a Professional Service, Requesters may have the option of

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choosing that the Professional Service be repeated on a regular basis, when, in fact, consumers

have only one optionto sign up for a recurring cleaning plan.

21. After consumers have entered the requested information and selected the

hyperlink Get a Price, consumers are directed to a final payment page, a sample of which is

attached as Exhibit C. It is only at this final step in the scheduling process, three pages into the

booking, that Handy discloses the existence of a cleaning plan. Indeed, this is the first time the

phrase cleaning plan is used during the entire scheduling process. On this page, consumers are

automatically enrolled into what Handy describes as the most popular plan of bi-weekly

cleanings and are asked to enter in their address and payment information. Consumers have the

option to select a weekly cleaning plan instead of the bi-weekly option, but do not have the

option to opt out of cleaning plans altogether. There are no statements on this page informing

the consumer that they have been entered into a cleaning plan that will bill them for

automatically recurring cleanings.

22. Handys representations on this final payment page (Exhibit C) are confusing and

give the overall impression that the consumer is scheduling a single one-time cleaning. The

price shown on the page is the price for a single cleaning and there is only a single date provided

in a summary of the booking. Under the heading Questions, which provides answers to

general questions about Handys services, there is no explanation regarding cleaning plans.

There is also no information regarding how to cancel a cleaning plan. Although consumers are

informed that they can save up to 28% on your hourly rate by selecting a cleaning plan, this

information gives the impression that a consumer is actually booking a single cleaning and that

enrolling in a cleaning plan merely is an option.

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 23. The day before the scheduled cleaning, Handy sends the consumer a Meet Your

Cleaning Professional email, which provides the cleaning professionals name and phone

number. The Meet Your Cleaning Professional email provides no indication that the consumer

has signed up for a cleaning plan and does not provide any further dates on which the consumer

can expect to receive cleaning services. The consumer is not contacted further until immediately

before the cleaning, when the cleaning professional notifies the consumer that they are on their

way.

24. Consumers who use the Handy App to schedule cleaning services are also

automatically enrolled in a cleaning plan. On the Handy App, consumers are first required to

navigate through several screens that seek information regarding the cleaning that the consumer

is requesting, including location, numbers of bedrooms and bathrooms, date and time, and

contact information. Then, consumers are taken to a screen that shows a price for only a single

cleaning but automatically selects for the consumer the most popular cleaning plan of every

two weeks. Like the booking process on Handys webpage, consumers have the option to select

a weekly cleaning plan instead of the bi-weekly option, but do not have the option to opt out of

cleaning plans altogether. Despite Handys representations that consumers can make individual

bookings on the Handy App, consumers that schedule cleanings through the Handy App are not

given an option to schedule a single, one-time cleaning. In addition, there is nothing on the

Handy App that explains cleaning plans or informs consumers that they will be automatically

billed for recurring cleanings when they schedule their booking.

25. As a result of Handys misleading practice of automatically enrolling consumers

into recurring cleaning plans, which is either not disclosed or inadequately disclosed, many D.C.

consumers were unaware that they were enrolled in a cleaning plan, instead believing they were

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scheduling a one-time cleaning. These consumers often only become aware that they were

enrolled in a cleaning plan when they are contacted by the cleaning professional immediately

before the automatically scheduled cleaning. As a result, they were often charged a cancellation

fee for not canceling their cleaning within the appropriate time or they were charged a no-show

fee.

26. Handy also represents on its webpage and on the Handy App that consumers may

skip, cancel or reschedule anytime and that Handy provides a 100% money-back guarantee.

The likely effect these representations have on consumers is to cause them to believe that they

can easily cancel without being charged by Handy. In fact, Handy charges cancellation fees for

any scheduled cleaning services that are cancelled by the consumer less than 24 hours before the

scheduled time. In addition, consumers that cancel at least 24 hours before the scheduled time

are still automatically charged for the cleaning and given a credit that may be applied to a future

cleaning.

27. In particular, Handy charges $15 for any scheduled cleaning service that is

cancelled by the consumer two to twenty-four hours before the scheduled cleaning time. Handy

charges the full amount for any scheduled cleaning service that is cancelled less than two hours

before the scheduled time. Handy also charges the full amount for the cleaning service in

instances where a cleaning professional arrives and the consumer is not at home and has not

provided a means for entry. This is referred to by Handy as the no-show fee. Last minute

cancellations or incurring no-show fees are not infrequent occurrences because many consumers

do not become aware they have been enrolled into cleaning plans until either right before second

appointments or after missed appointments and they are billed for services they did not want or

knowingly authorize.

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 28. Moreover, the process for cancelling a cleaning plan on Handy.com is also

confusing and difficult for consumers. There is no customer service or other phone number

listed on Handy.com. The Contact Us hyperlink on Handy.com does not provide consumers

with the means to directly contact Handy. Instead, the Contact Us hyperlink directs consumers

to a page with further hyperlinks for Suggested Topics, including one titled Cancel my

cleaning plan. Selecting Cancel my cleaning plan does not itself allow consumers to cancel,

and instead directs consumers to log in to their Handy.com account to cancel. Once logged in,

consumers may elect to cancel their cleaning plans. However, after cancelling through their

Handy.com accounts, consumers receive an email from Handy stating, among other things, that

if the consumer still wishes to cancel their cleaning plan, they must follow an embedded

hyperlink provided in the email. The cancellation email makes it unclear to consumers whether

they have successfully cancelled their cleaning plan and the lack of direct contact information on

Handy.com makes it difficult for consumers to seek clarification.

29. Handys representations to consumers that they are purchasing a single cleaning

service and they can opt for recurring services when, in fact, all consumers who use Handys

webpage or the Handy App are enrolled in recurring plans, are misrepresentations of material

facts that tend to mislead consumers.

30. Handys representations to consumers that they may purchase a single cleaning

service through the Handy App when, in fact, all consumers who use the Handy App are enrolled

in recurring plans, are misrepresentations of material facts that tend to mislead consumers.

31. Handys representations to consumers that they can easily cancel or reschedule a

cleaning at any time and are eligible for a 100% money-back guarantee if they are not satisfied

are misrepresentations of material facts that tend to mislead consumers. In fact, consumers who

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cancel cleanings have difficulty doing so, are charged cancellation fees if they fail to cancel more

than 24 hours in advance of any scheduled cleaning service, and are charged (and instead

provided credit) for cancelling more than 24 hours before any scheduled cleaning service.

32. Handys failure to inform consumers that they are unable to schedule one-time

cleanings and its failure to inform consumers that they are automatically enrolled in and billed

for recurring services are material facts, the omission of which tend to mislead consumers.

33. Handys failure to explain cleaning plans throughout its scheduling process and

its representation that consumers may schedule one-time cleanings constitute ambiguities as to

material facts that have the tendency to mislead consumers.

Violations of the Consumer Protection Procedures Act

34. The allegations of paragraphs 1 through 33 are re-alleged as if fully set forth

herein.

35. The CPPA is a remedial statute that is to be broadly construed. It establishes an

enforceable right to truthful information from merchants about consumer goods and services that

are or would be purchased, leased or received in the District of Columbia.

36. The cleaning services that Handy offers to sell or supply consumers are purchased

for personal, household or family purposes and, therefore, are consumer goods and services.

37. Handy, in the ordinary course of business, offers to sell or supply consumer goods

and services and, therefore, is a merchant.

38. The CPPA prohibits unlawful trade practices in connection with the offer, sale

and supply of consumer goods and services.

39. Handys representations to consumers, both express and implied, that its cleaning

professionals are pre-screened, background- and identity-checked, have no relevant prior

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criminal convictions, and otherwise can be safely trusted to have access to consumers homes are

representations that Handys cleaning services have a certification or characteristic that they do

not have and are unlawful practices that violate the CPPA, D.C. Code 28-3904(a).

40. Handys representations, both express and implied, that its cleaning professionals

are trusted, pre-screened, background- and identity-checked, have no prior criminal convictions

and otherwise can be safely trusted to have access to consumers homes, that consumers may

cancel or reschedule a cleaning service at any time and their satisfaction is 100% guaranteed, and

that consumers are purchasing a single cleaning service when, in fact they are purchasing a

recurring cleaning plan, are misrepresentations concerning a material fact that have a tendency to

mislead consumers and are unlawful trade practices that violate the CPPA, D.C. Code 28-

3904(e).

41. Handys failure to disclose to consumers that its screening process does not

effectively screen the criminal backgrounds of its professional cleaners or that consumers will be

enrolled into cleaning plans that automatically bill for recurring services are material facts, the

omission of which tended to mislead consumers and are unlawful trade practices that violates the

CPPA, D.C. Code 28-3904(f).

42. Handys failure to explain cleaning plans throughout its scheduling process, its

representation that consumers may cancel or reschedule a cleaning service at any time and their

satisfaction is 100% guaranteed, and its representation that consumers may schedule one-time

cleanings constitute ambiguities as to material facts that have the tendency to mislead consumers

and are unlawful trade practices that violates the CPPA, D.C. Code 28-3904(f-1).

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 Prayer for Relief

WHEREFORE, the District of Columbia respectfully requests this Court enter a

judgment in its favor and grant relief against Defendant Handy Technologies, Inc. as follows:

(a) Permanently enjoin Defendant, pursuant to D.C. Code 28-3909(a), from

violating the CPPA;

(b) Order Defendant to pay restitution pursuant to D.C. Code 28-3909(a) for

amounts collected from District of Columbia consumers in violation of the CPPA;

(c) Order the payment of statutory civil penalties in the amount of $1,000 per

violation, the number of which shall be proven at trial, pursuant to D.C. Code 28-3909(b), for

the Defendants violations of the CPPA;

(d) Award the District the costs of this action and reasonable attorneys fees

pursuant to D.C. Code 28-3909(b); and

(e) Grant such further relief as the Court deems just and proper.

Jury Demand

The District of Columbia demands a trial by jury by the maximum number of jurors

permitted by law.

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 Respectfully submitted,

Dated: September 9, 2016 KARL A. RACINE

PHILIP ZIPERMAN [429484]

JIMMY R. ROCK [493521]

BENJAMIN M. WISEMAN [1005442]

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