FTC orders Opendoor Labs to pay $62 million for deceiving potential home sellers

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Opendoor allegedly falsely told consumers that it makes money from a “service charge” than “buying low and selling high.” The company also allegedly lied to consumers that it would use cutting-edge technology to save them money by providing “market-value” offers and lowering transaction costs if they sold their homes to it.

In other words, Opendoor falsely claims that consumers would make more money selling their homes to it than from a traditional sale.

According to the FTC, in reality, Opendoor made offers to consumers’ homes using projected market value prices, which included downward adjustments to the market values. The company company made money by buying low and selling high.

Additionally, the Commission alleged the Opendoor claimed that consumers would save money on repairs by passing wholesale savings from its partnerships with local vendors.

In fact, the FTC’s investigation found that consumers would have paid the same amount in repair costs whether they sold their homes to Opendoor or in traditional sales.