Federal lawsuit targets landlord: Allegations of Deceptive Advertising and Hidden Fees
The Federal Trade Commission (FTC) and Colorado Attorney General Phil Weiser have filed a lawsuit against Greystar, the nation’s largest private apartment landlord, alleging deceptive advertising practices and hidden fees that have cost consumers hundreds of millions of dollars.
Greystar’s Business Practices
Greystar manages over 800,000 rental units across the United States, including student housing, apartment towers, and senior residential units. According to the lawsuit, the company advertises low lease rates but fails to disclose mandatory fees until after prospective tenants have paid application fees or signed their leases. These fees include charges for pest management, trash, and community amenities.
Allegations and Evidence
The lawsuit claims that Greystar’s practices are designed to mislead renters into paying more than they anticipated for their apartments. Some examples of the alleged hidden fees include.
– Valet Trash Fees: $25 per month for trash service
– Pest Control Fees: $5 per month
– Utility Administration Fees: $5.40 per month
– Package Handling Fees: charges for handling packages and deliveries
The complaint alleges that these fees are often not disclosed until after prospective tenants have paid nonrefundable application fees, and in some cases, not until after they have signed their leases.
Still on Federal lawsuit targets landlord
Greystar’s Response
Greystar has rejected the accusations, stating that tenants never sign leases without full disclosure. The company claims that its practice of advertising base rent is a longstanding industrywide practice and that it is not attempting to hide fees from consumers. Greystar plans to ask a judge to dismiss the lawsuit, calling the accusations “gross misrepresentations” of fact.
FTC and Colorado’s Claims
The FTC and Colorado Attorney General’s office argue that Greystar’s practices are deceptive and unfair, violating the FTC Act, the Gramm-Leach-Bliley Act, and the Colorado Consumer Protection Act. FTC Chair Lina Khan stated that the FTC is taking action against corporate landlords that use illegal tactics to jack up rent, exploit tenants, and deprive Americans of safe and affordable housing.
Potential Implications
If the court rules in favor of the FTC and Colorado, Greystar could be required to change its business practices and potentially pay damages to affected tenants. The lawsuit could also have implications for the broader apartment rental industry, as it highlights the issue of hidden fees and deceptive advertising practices.
Recent Developments
Greystar’s website now includes a popup disclaimer stating that advertised rents are “Base Rent” and that tenants may ultimately pay more. The company has also promised to list more detailed costs for tenants in the near future. The lawsuit was filed just before President Donald Trump took office, and despite changes in the FTC’s leadership, the remaining commissioners have not withdrawn the lawsuit.
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