The Federal Trade Commission (FTC) announced that three rent-to-own operators agreed to settle the lawsuits alleging that the companies violated the federal antitrust law.
Aaron’s Inc., Buddy’s Newco LLC, and Rent-A-Car Center reached a settlement agreement, in which the rent-to-own operators consented to the FTC order requiring them to cease and desist from engaging in anti-competitive practices. The respondents also agreed to submit compliance reports to the Commission.
FTC allegations against the rent-to-own operators
In the complaints, the FTC alleged that Aaron’s, Buddy’s, and Rent-A-Center entered into anticompetitive reciprocal purchase agreements with each other and other competitors in June 2015 to May 2018.
Under these reciprocal agreements, each of the rent-to-own company swapped customer contracts in various local markets. As a result, one party to the agreement agreed to close its stores and exit a local market and the other party continues to operate its business.
The store closures probably happened due to the reciprocal purchase agreements, which reduced competition for quality and service in the remaining stores in the local market, according to the Commission.
