Opendoor Pays $62 Million to Settle FTC False Advertising Charges
The Federal Trade Commission fines Opendoor $62 million over deceptive claims that its iBuying platform helps sellers make more money than the traditional market. The settlement delivers a significant blow to the broader iBuying industry.
Opendoor agrees to pay $62 million to settle Federal Trade Commission charges accusing the real estate company of false advertising. The FTC states that Opendoor deceptively claims it helps homeowners make more money selling to its platform compared to the traditional open market.
The commission alleges that Opendoor actually provides offers below market value and charges sellers higher repair costs than a typical market sale requires. Although Opendoor disagrees with the allegations and notes the targeted marketing ended years ago, the company chooses to settle to avoid prolonged legal battles and focus on its business.
This settlement impacts the entire iBuying industry, which relies heavily on similar marketing promises to attract home sellers. The FTC plans to use the $62 million fund to issue refunds to affected consumers, though the final collected amount depends on enforcement by the Department of Justice.