FTC and Colorado Attorney General Sue Greystar Over Deceptive Rental Practices
DENVER — The Federal Trade Commission (FTC) in conjunction with Colorado Attorney General Phil Weiser has launched a lawsuit against Greystar, a major corporate landlord, accusing the company of deceptive advertising and the imposition of undisclosed “junk fees” that inflate rental costs. Greystar, which manages approximately 45,000 rental units across Colorado, is said to have engaged in misleading pricing tactics beginning in 2019.
According to the allegations made by Weiser, potential tenants often agree to a rental price, only to later discover additional charges for services such as trash collection, package handling, and utility management that were not disclosed during the application process. These fees appear in the lease after applicants have already incurred non-refundable application costs, diminishing their ability to consider other options.
Weiser emphasized that Greystar’s practices violate the Colorado Consumer Protection Act, claiming that such tactics prevent renters from accurately understanding the total cost of their leases. He described how tenants could end up responsible for hundreds or even thousands of dollars more than they expected due to these hidden fees. “Greystar is thwarting apartment hunters from comparison shopping and making informed decisions about their housing budgets,” he said.
In addition to the lawsuit, Weiser is seeking a permanent injunction to halt Greystar’s alleged violations and is pursuing monetary relief for consumers along with civil penalties for the state.
This lawsuit arrives amidst ongoing scrutiny of junk fees in the real estate sector, with lawmakers actively proposing measures for transparent pricing in leases. As the issue garners more attention, the Colorado Apartment Association has expressed concerns about potential additional regulations affecting housing providers.
Greystar also faces a separate antitrust lawsuit in Colorado, as part of a wider investigation into six major landlords accused of colluding to maintain high rental prices.