Opendoor settles FTC deceptive marketing claim for $62M

The U.S. Federal Trade Commission announced that Opendoor had settled a claim by paying $62 million. The FTC had levied the claim against the alternative finance company alleging deceptive marketing practices. The agency says that Opendoor mislead consumers in how it makes money, the information it provided sellers related to projected home value prices, repair cost estimates and estimated selling costs. Along with the payment, the company agreed to change its marketing and messaging that led to the allegations. Opendoor pioneered the compelling new business model of iBuying, and, as the most significant practitioner left standing in a proliferating field of iBuying and alternative finance, it faces significant scrutiny, from regulators and the industry at large. As its newer partnership with Zillow makes clear, the company continues an aggressive push to bring its innovative vision for streamlining real estate transactions to more consumers.