The Federal Trade Commission (FTC) sent warning letters to 13 property management software providers that said their products may be running afoul of the law if they hinder the flow of accurate pricing information in rental listings.
“Available information suggests that property management software providers are limiting the ability of rental property managers and owners to accurately advertise the total monthly rental price, inclusive of all mandatory fees,” said the letters. “Property management software programs may cause consumer harm and harm to competition in the rental housing market when they do not accurately display complete pricing information across websites hosted on their platforms, or where they restrict property owners’ and managers’ ability to aggregate or convey accurate cost information to consumers on third-party listing sites.”
The FTC’s action comes one week after the agency announced a $23 million settlement with Greystar that resolved charges that the multifamily rental property manager allegedly deceived consumers about rental prices.
The letters warned that companies engaging in such conduct may be subject to legal action and federal district court injunctions, as well as civil penalties of up to $53,088 per violation. The letters advised the companies to “conduct a comprehensive review of your practices, including your website hosting platforms and any software or coding controlling the flow of information from your software to internet listing sites, to ensure that you comply with applicable laws and do not impede the ability of property owners and managers to provide consumers with transparent rental prices.”
The FTC did not identify which companies received the letters.
