Nearly 55,000 home sellers became victims of deceptive marketing. These marketing tactics were used by the online property firm Opendoor. These sellers are slated to receive checks in a regulatory action. The FTC has secured a substantial settlement from Opendoor. The amount is a notable $62 million. This settlement resolves a complaint from August 2022.
FTC Ready to Mail Refunds to Consumers
The FTC publicly disclosed on Wednesday that they were in the process of dispatching checks to 54,689 affected consumers. The projected median refund to be received is registered at $1,024. The Commission instructed the recipients to cash the checks within an allotted window of 90 days from receiving them. For refund procedures and inquiries, recipients can contact the designated administrator, Epiq Systems. Notably, the FTC does not require individuals to remit payments or divulge account data to obtain their refund. Besides the $62 million paid to the FTC, Opendoor has solemnly pledged to renounce its misleading practices.
Opendoor Deception Impacts a Broad Spectrum of Homeowners
The egregious deception perpetrated by Opendoor has impacted homeowners across the board, including senior citizens. The National Association of Realtors indicates that as of 2023, the archetype of a home seller is a 60-year-old individual with a median household income of $111,100, having resided in their home for a decade.
Opendoor Accused of Tricking Home Sellers
According to the FTC complaint, Opendoor had phenomenally duped home sellers into conceiving they'd enjoy higher returns selling via their platform rather than resorting to well-established sales strategies on the open market. Opendoor had also purported that potential home sellers would enjoy substantial savings by partnering with their online real estate firm. Contrary to what Opendoor claimed, the FTC asserted that clients who marketed their homes on Opendoor made thousands of dollars less than they'd have earned if they followed orthodox selling methods. Moreover, the FTC discovered that several customers had borne more costs than they'd typically paid.
FTC and Opendoor Opinions on the Issue
Opendoor had promised to revolutionize the real estate sector but instead resorted to conventional dupery about potential earnings for consumers selling their properties on its platform. Samuel Levine, director of the FTC Bureau of Consumer Protection, pointed this out when he filed the complaint in August last year. "Duping consumers has nothing to do with innovation," he stated.
While strongly disagreeing with the FTC's allegations, Opendoor capitulated to reaching a settlement phase to pay more attention to its organizational goal, which is to assist consumers in buying, selling, and moving with ease, certainty, and expedition.
What Will Happen Next to Opendoor
This settlement signals a considerable moment for online platforms specializing in real estate transactions. It promises to prioritize transparency and fairness while dealing with consumers, a critical factor considering that conventional home sellers are primarily older adults. Trust and faith in these growing online platforms are integral to their progressive growth and participation in the real estate sector.
