Progress Residential to Pay $49.75M to Settle Deceptive Rental Pricing Charges
The FTC and four states reached a $49.75 million settlement with Progress Residential and Pretium Partners over hidden fees and deceptive pricing.
Progress Residential, the largest single-family rental home property manager in the United States, and its private equity owner Pretium Partners have agreed to pay $49.75 million to settle federal and state charges alleging deceptive rental pricing practices, the Federal Trade Commission announced.
The FTC, joined by four states, alleged that the companies misled prospective tenants through deceptive advertised prices that did not reflect true rental costs, failed to clearly disclose additional fees, and improperly withheld security deposits from renters.
Read more SEC Updates Small Entity Definitions for Investment Firms →
Under the terms of the proposed settlement order, Progress Residential and Pretium Partners will be required to advertise accurate rental prices, clearly and conspicuously disclose all fees to consumers before they enter into leases, and cease the practices regulators described as unlawful withholding of security deposits.
The case reflects a broader regulatory focus on so-called junk fees in the rental housing market, where large institutional landlords have faced mounting scrutiny from federal and state authorities over pricing transparency. Progress Residential's scale as the nation's dominant single-family rental operator amplifies the potential consumer impact of such practices, regulators indicated.
Continue reading at Press Release Feed
