US FTC penalizes Invitation Homes $48 million for undisclosed fees
Real Estate

US FTC penalizes Invitation Homes $48 million for undisclosed fees

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.

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.

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?