Report: FTC to Sue Property Management Firm Greystar, Alleging Hidden Fees
The Federal Trade Commission (FTC) is reportedly preparing to sue real estate development and property management firm Greystar Real Estate Partners, alleging that the company charged tenants hidden fees.
The regulator’s civil lawsuit is expected to allege that Greystar did not properly disclose fees for things like pest control, trash services and tenant background checks, The Wall Street Journal (WSJ) reported Monday (Jan. 13), citing unnamed sources.
Reached by PYMNTS, a Greystar spokesperson said in an emailed statement: “Greystar has worked hard to lead the industry toward improved fee disclosures and has taken proactive steps over the last several years to promote greater fee transparency. The most effective path to achieving uniform and consistent fee disclosures across the industry is through clear regulatory guidelines which do not yet exist in the rental space.”
The FTC did not immediately reply to PYMNTS’ request for comment.
Greystar, which manages more than 108,000 units across the country, already faced a lawsuit filed by tenants that alleged the company hid fees, according to the WSJ report.
The company has always disclosed fees to tenants in its lease agreements but also began including a “fee guide” in apartment listings on its website in 2024, per the report.
The FTC has taken a number of actions to prevent what it calls “junk fees.”
In December, the regulator unveiled a rule blocking “bait-and-switch” pricing for hotels and concert tickets, saying these tactics are used by the live-event ticketing and short-term lodging sectors to mask total prices and hide junk fees.
In October, the FTC enacted a new rule requiring businesses to simplify the cancellation process for subscriptions and memberships, saying it aimed to curb junk fees. Known as the “click to cancel” rule, the policy mandates that companies must ensure the cancellation process is as straightforward as signing up.
The regulator has also warned franchisors about junk fees. In July, it warned these businesses that non-disparagement clauses and the imposition of previously undisclosed fees are against the law.
“Franchising is a chance for Americans to build a business, but the FTC has heard concerns about how unfair franchisor practices, like a failure to fully disclose fees upfront, go unreported thanks to a fear of retaliation,” FTC Chair Lina M. Khan said at the time in a press release.
The post Report: FTC to Sue Property Management Firm Greystar, Alleging Hidden Fees appeared first on PYMNTS.com.