Invitation Homes, the largest U.S. landlord for single-family homes, has agreed to a USD 48 million settlement with the Federal Trade Commission (FTC) over allegations of misleading renters about lease costs. The FTC's lawsuit accused the company of imposing hidden fees, such as charges for air filter delivery and utility management, without clear disclosure. The settlement aims to reimburse affected renters, although Invitation Homes did not admit wrongdoing. This case is part of a broader initiative by the Biden administration to address "junk fees" that contribute to rising living costs and protect renters' rights.
Invitation Homes, the biggest landlord for single-family homes in the U.S., has agreed to pay USD 48 million to settle with the U.S. Federal Trade Commission (FTC). The FTC claimed the company misled renters about the real cost of their leases by adding hidden fees between 2021 and 2023. These fees included charges for things like air filter delivery, smart home technology, and utility management. The FTC's lawsuit, filed in Atlanta; the fees were not clearly disclosed when renters applied for their homes. The USD 48 million settlement will be used to reimburse renters. Invitation Homes maintains that its disclosure practices are among the best in the industry, both compared to other large companies and smaller landlords of single-family homes.
As part of the settlement, the company did not admit to any wrongdoing. This case is part of the Biden administration's wider effort to crack down on "junk fees" that increase the cost of living in the U.S. No American should have to pay higher rent or risk losing their home due to illegal actions by corporate landlords. The lawsuit also accused Invitation Homes of not inspecting homes before residents moved in and unfairly keeping security deposits when they moved out. The FTC also claimed that Invitation Homes used unfair eviction practices, like not informing renters in trouble during the COVID-19 pandemic about an eviction freeze put in place by the U.S. Centers for Disease Control and Prevention (CDC). However, the Republican commissioners of the FTC disagreed with this claim. The CDC's order was overturned by the U.S. Supreme Court in 2021.
In conclusion, the settlement between Invitation Homes and the FTC highlights the ongoing challenges renters face in understanding the true costs of their leases. By addressing hidden fees and unfair practices, the case reinforces the need for transparency in the rental market. As the Biden administration continues to combat "junk fees," this settlement may encourage other landlords to improve their practices. Ultimately, ensuring fair treatment for renters is essential to develop a more equitable housing market, where no one is burdened by unexpected costs or unfair evictions, especially during challenging times like the COVID-19 pandemic.
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