After last week’s settlement with Greystar, the Federal Trade Commission (FTC) has warned 13 property management software providers that they may be violating the law if they hinder multifamily property managers and owners from conveying accurate pricing information in rental listings.
The FTC’s letters to the software providers noted that available information suggests they are limiting the ability of property managers and owners to accurately advertise total monthly rental prices by not including all mandatory fees. Companies engaging in this type of conduct could face legal action and federal district court injunctions as well as civil penalties of up to $53,088 per violation under FTC’s enforced rules and regulations.
“The FTC is committed to rooting out anticompetitive, unfair, and deceptive acts or practices in the rental housing market,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “Companies need to compete on price, and consumers need accurate and nondeceptive information to make the best-informed decisions possible.”
In addition, the letters urged the software providers to conduct a review of their practices, including website hosting platforms and software or coding that controls the flow of information to listings sites.
“We are monitoring the marketplace for potentially deceptive or unfair acts or practices relating to the marketing and advertising of rental housing and will take additional action as warranted,” the letters concluded.
The FTC also shared guidance from its lawsuit with Greystar for property managers, owners, and software providers earlier this week:
- Advertise the total cost of renting a unit upfront since advertising a rental price that excludes mandatory charges is a violation of the law;
- Do a compliance check by reviewing websites and advertisements to confirm they advertise the true rental price and ensuring third-party vendors are accurately advertising the price on their platforms; and
- Know that the FTC is reviewing potentially harmful practices in the market and will take action against property managers and owners that hide mandatory fees.