US FTC penalizes Invitation Homes $48 million for undisclosed fees

27 Sep 2024 CW Team

Invitation Homes, the largest landlord for single-family homes in the US, agreed to a $48 million settlement with the US Federal Trade Commission (FTC) regarding allegations of deceiving renters about lease costs. According to the FTC, the company charged renters tens of millions of dollars in undisclosed fees between 2021 and 2023, which included costs for air filter delivery, smart home technology, and utility management.

The FTC's lawsuit, filed in Atlanta, indicated that these fees were not disclosed to customers at the time they applied for their units. The $48 million settlement is designated for reimbursing affected renters.

In a statement, Invitation Homes asserted that it believed its disclosures and practices were industry-leading, surpassing those of both its professional peers and many smaller owners of single-family rental homes. As part of the settlement, the company did not admit any wrongdoing.

This case represents another instance of the Biden administration's efforts to address "junk fees" that contribute to the rising cost of living in the United States. FTC Chair Lina Khan remarked that no American should have to pay higher rent or face eviction due to illegal practices by corporate landlords.

The lawsuit also accused Invitation Homes of not inspecting homes before residents moved in and of unfairly withholding security deposits upon their departure. Additionally, the FTC alleged that the company engaged in unjust eviction practices by failing to inform renters facing financial hardships during the COVID-19 pandemic about an eviction moratorium issued by the U.S. Centers for Disease Control and Prevention (CDC).

However, Republican commissioners at the FTC expressed disagreement with this charge, noting that the CDC order had been vacated by the U.S. Supreme Court in 2021.

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