Business ProfileforOpendoor

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On October 19, 2022, Opendoor Labs Inc entered into a Decision and Order with the Federal Trade Commission. The Order settles allegations that the business made false or unsubstantiated claims in connection with the advertising, promotion, offering for sale, or sale of its homebuying business. Opendoor allegedly used projected market value prices when making offers to buy homes, when in fact those prices included downward adjustments to the market values; Opendoor allegedly made money from disclosed fees, when in reality it allegedly made money by buying low and selling high; Consumers likely would have paid the same amount in repair costs whether they sold their home through Opendoor or in traditional sales; and consumers likely would have paid less in costs by selling to Opendoor than they would pay in traditional sales.

Under terms of the Order, the business agreed to pay $62 million for consumer redress, prohibits the business from making the deceptive, false, and unsubstantiated claims it made to consumers about how much money they will receive or the costs they will have to pay to use its services. The business is required to have reliable evidence to support any representations made about costs, savings, or financial benefits associated with using its service, and any claims about the costs associated with traditional home sales. The Assurance was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.

This action is final.

On April 3, 2024, the Federal Trade Commission announced they are sending 54,689 checks totaling nearly $62 million to consumers who were impacted by the government action listed above. For more information, please visit: https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-sends-nearly-62-million-refunds-sellers-deceived-online-real-estate-listing-service-opendoor?utm_source=govdelivery