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US FTC Fines Invitation Homes $48 Million Over Hidden Fees, Reports Reuters

Invitation Homes, the largest landlord of single-family homes in the U.S., has agreed to pay $48 million to settle allegations from the Federal Trade Commission (FTC) regarding deceptive practices related to lease costs.

According to the FTC, the company charged renters tens of millions of dollars in undisclosed fees from 2021 to 2023. These fees included charges for air filter delivery, smart home technology, and utility management, which were not disclosed when customers applied for their homes. The settlement amount will be used to reimburse affected renters.

In a statement, Invitation Homes asserted that it believes its disclosure practices are among the best in the industry, both in comparison to its peers and to smaller landlords of single-family homes. The company did not admit to any wrongdoing as part of this settlement.

This case is part of the Biden administration’s broader initiative to address “junk fees” that contribute to increased living costs in the country. FTC Chair Lina Khan emphasized that no American should face higher rents or the threat of eviction due to unfair practices by corporate landlords.

Additionally, the lawsuit accused Invitation Homes of failing to inspect properties before new tenants moved in and of improperly withholding security deposits upon move-out. The FTC also pointed out unfair eviction practices, noting that the company did not inform renters about a federal eviction moratorium during the COVID-19 pandemic.

Republican commissioners from the FTC expressed disagreement with the eviction practices charged, highlighting that the CDC’s eviction order was vacated by the U.S. Supreme Court in 2021.

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