President Biden’s Administration Targets Real Estate Industry Before Leaving Office
President Joe Biden is nearing the end of his term, but his administration is not slowing down in its efforts to hold the real estate industry accountable. The Federal Trade Commission (FTC) has filed a lawsuit against multifamily property manager Greystar, alleging deceptive practices that misled renters by adding mandatory fees that exceeded the advertised prices.
The complaint, filed in the U.S. District Court for the District of Colorado with the State of Colorado as a plaintiff, accuses Greystar of violating the Federal Trade Commission Act, the Gramm-Leach-Bliley Act, and the Colorado Consumer Protection Act. According to the FTC, Greystar’s alleged hidden fees prevent tenants from accurately comparing prices and choosing an affordable home.
Colorado Attorney General Phil Weiser stated, “Because of Greystar’s deceptive advertising and hidden fees, tenants are on the hook in their lease for hundreds, if not thousands, of dollars more than they anticipated that their apartment would cost.”
The complaint highlights various undisclosed fees imposed by Greystar, including charges for utilities and renters insurance. Greystar allegedly fails to provide information about these fees to apartment hunters and does not offer the option to opt out.
In response, Greystar criticized the FTC for pursuing litigation instead of collaborating to improve consumer experiences in the rental housing industry. The company denies allegations of hiding fees and asserts that residents agree to all fees listed in their lease.
The Biden administration’s focus on antitrust and consumer protection has also targeted the real estate industry in recent months. While not directly involved in the NAR’s settlement of antitrust lawsuits, the administration has shown a willingness to intervene in similar cases.
Previous cases, such as the DOJ’s lawsuit against RealPage for inflating rents through private information sharing, demonstrate the administration’s commitment to addressing industry practices that harm consumers. It remains to be seen how President-elect Donald Trump’s administration will approach these issues moving forward.
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