Greystar, the largest multi-family rental property manager in the United States, has agreed to pay $24 million and stop certain advertising practices after a lawsuit brought by the Federal Trade Commission (FTC) and the State of Colorado. The company was accused of misleading consumers about monthly rent prices by not including mandatory fees in its advertised prices.
The settlement includes a payment of $23 million to the FTC and $1 million to Colorado. Of the total amount, $23 million will be used to provide refunds to consumers affected by Greystar's actions. In addition, Greystar is required to clearly display all mandatory fees and the total monthly leasing price in its advertisements.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said: “Greystar misled consumers by advertising low rent prices and then adding mandatory fees at the end of the sales process. At a time when Americans are struggling to find affordable housing, the FTC is focused on monitoring the housing marketplace to ensure that competitors are meaningfully competing on price and that consumers receive transparent pricing.”
In January 2025, both agencies alleged that Greystar presented deceptively low rental prices that did not include several fixed monthly fees. This conduct was found to violate federal and state consumer protection laws.
The proposed court order prohibits Greystar from misrepresenting any pricing information related to its rental properties or services. The company must also make clear disclosures about all fees before accepting any payments from renters. Specifically, if base rent or partial pricing is advertised, Greystar must prominently disclose the full monthly leasing price.
The FTC's Commission voted 2-0 in favor of filing the stipulated final order in U.S. District Court for the District of Colorado. Chairman Andrew N. Ferguson issued a statement regarding this action.
According to standard procedure, such complaints are filed when there is reason to believe defendants are violating or may violate laws protecting consumers. Stipulated final orders have legal force once approved by a district court judge.
The Federal Trade Commission’s mission includes promoting competition and protecting consumers through education and enforcement activities. More information for consumers can be found at consumer.ftc.gov, where fraud or bad business practices can also be reported at ReportFraud.ftc.gov.
