The Federal Trade Commission (FTC) and Colorado Attorney General have reached an agreement resolving civil action taken against leading multifamily owner and manager Greystar in January over misrepresenting the true cost of renting by displaying a price that excluded several mandatory monthly fees.
According to the FTC, as part of the settlement, Greystar has agreed to pay $23 million to the Commission and $1 million to the state of Colorado. Of the amount, $23 million will be used to refund consumers. The proposed order would also require Greystar to clearly and conspicuously display total monthly leasing prices and mandatory fees before taking any payments from prospective renters.
“Greystar misled consumers by advertising low rent prices and then adding mandatory fees at the end of the sales process,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “At a time when Americans are struggling to find affordable housing, the FTC is focused on monitoring the housing marketplace to ensure that competitors are meaningfully competing on price and that consumers receive transparent pricing.
While the agreement contains no admission of wrongdoing, Greystar noted it provides needed clarity on the FTC’s expectations for advertising rental housing, puts an end to expensive litigation, and allows the owner and manager to continue focusing on its residents and clients.
Greystar countered, as it has from the start of this matter, that its “advertising has always been transparent, fair, and fully consistent with the longstanding industrywide practice of advertising base rent to potential residents.”
“Greystar has long championed transparency in the rental housing industry. In recent years, Greystar has launched industry-leading transparent pricing initiatives and digital tools, and encouraged technology partners to strengthen their own capabilities,” the firm noted in a statement. “Greystar’s investments and leadership in these areas show that we are well positioned to support our clients in meeting evolving FTC and state-level requirements.”