Additionally, the FTC argued that the reciprocal purchase agreements explicitly required the selling party to stop competing within a specified territory, normally for three years.
Preventing rent-to-own operators from repeating anti-competitive practices
In a statement, FTC Bureau of Competition Director Ian Conner said, “These agreements affected consumers who already had few options for furnishing a home on a limited budget.”
He added that the FTC Orders against Aaron’s, Buddy’s, and Ren-A-Center will eliminate their reciprocal purchase agreements. It will also restore competition in the affected local market and prohibit the companies from re-engaging into this unlawful anti-competitive practice.
The FTC voted 3-2 to issue the complaint and accept the proposed Consent Order against the three rent-to-own operators.
“We believe this relief, which is tailored to both the nature of the challenged conduct and the governing law, would remedy the legal violation and prevent its recurrence,” according to FTC Chairman Joseph Simons and Commissioner Noah Joshua Phillips.
Commissioner Chopra believes the proposed settlement was inadequate
On the other hand, Commissioner Rohit Chopra disagreed. He believed that the proposed settlement was inadequate.
