The federal agency will send checks to 54,689 consumers it says were deceived by advertising and marketing claims made by the iBuyer.
Join the movement at Inman Connect Las Vegas, July 30 – Aug. 1! Seize the moment to take charge of the next era in real estate. Through immersive experiences, innovative formats and an unparalleled lineup of speakers, this gathering becomes more than a conference — it becomes a collaborative force shaping the future of our industry. Secure your tickets now!
Opendoor will pay nearly $62 million in refunds to tens of thousands of homesellers and end its allegedly deceptive advertising under a settlement with the Federal Trade Commission, according to an FTC announcement Wednesday.
The federal agency will send checks to 54,689 consumers it says were deceived by advertising and marketing claims made by the iBuyer.
“According to the FTC’s August 2022 complaint, Opendoor cheated home sellers by tricking them into thinking that they could make more money selling their home to Opendoor than on the open market using the traditional sales process while saving them money on costs,” the FTC said.
“In reality, most people who sold to Opendoor made thousands of dollars less than they would have made selling their homes using the traditional process and many paid more in costs than what sellers typically pay. Under a final administrative order, Opendoor agreed to pay monetary relief and stop its deceptive tactics.”
Asked for comment, Opendoor referred Inman to a statement the company issued in August 2022, when it first reached its settlement with the FTC.
“While we strongly disagree with the FTC’s allegations, our decision to settle with the Commission will allow us to resolve the matter and focus on helping consumers buy, sell and move with simplicity, certainty and speed,” the company said.
“Importantly, the allegations raised by the FTC are related to activity that occurred between 2017 and 2019 and target marketing messages the company modified years ago. We are pleased to put this matter behind us and look forward to continuing to provide consumers with a modern real estate experience.”
Developing…
Editor’s note: This story has been updated with a statement from Opendoor.
