By The Consumer Federation Of America
A new report by the Consumer Federation of America, Angie’s List: An Evaluation of Its Usefulness for Consumers, provides a detailed assessment of this online rating service that documents many shortcomings but also explains its potential value to consumers. This report is the first in a series evaluating online services rating local service providers.
Angie’s List, founded in 1995, was originally supported mainly by annual consumer subscriptions and prioritized service to these subscribers. Today, while consumers can join for free, Angie’s List derives almost all revenue from advertising purchased by some of the local businesses that the online service lists and rates. Angie’s List recommends and gives preferential treatment to these advertisers that can easily mislead consumers into thinking that these businesses are the best ones and should be patronized. The report shows that these profiled businesses are often not those rated the most highly by consumers and by a nonprofit rating group.
CFA’s report includes the following conclusions about the usefulness of Angie’s List:
Posted on May 6, 2019