The Federal Trade Commission (FTC) took action against Opendoor Labs, an online real estate business operator, for deceiving potential home sellers by making false and unsubstantiated claims regarding its service and the costs associated with traditional home sales.
The online real estate business operator agreed to settle the FTC’s allegations by agreeing to a proposed order that requires the following:
Opendoor will pay the FTC $62 million, which would be used to provide compensation to consumers affected by the company’s deceptive and unfair business practices.
The company will stop making deceptive, false, and unsubstantiated claims regarding how much money consumers will receive or the costs they will have to pay to use its service.
It will also stop making baseless claims regarding the costs, savings, or financial benefits associated with using its services and any other claims related to traditional home sales. It must have competent and reliable evidence to support any representations.
Allegations against Opendoor
In its administrative complaint, the FTC alleged that Opendoor violated Section 5(a) of the Federal Trade Commission Act by engaging in unfair and deceptive business practices.