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The thing that pisses me off about these tests is that companies are getting free ideas and work. Imagine company X asks 5 separate designers to redesign their homepage. If they're a high profile company they're likely going to attract good candidates, so they can expect some pretty solid work coming in via the 'test'. This process brings in a bunch of (likely) fresh ideas for little to no cost and the creators have no real legal recourse over how the work is used. What's to stop company X from turning around and implementing your ideas? A verbal agreement between the candidate and some HR goof or unscrupulous Product Designer? Good luck with that.
The whole process is really fishy and lopsided.