Progress Residential and its owner Pretium Partners have agreed to a proposed $49.75 million settlement with the Federal Trade Commission and four states over alleged rental pricing and other practices. The proposed order would require clearer pricing and changes to security-deposit practices, the FTC announced November 6.
The FTC says the complaint and proposed order were filed in federal court in the Northern District of Georgia. A stipulated order has the force of law when a district judge approves and signs it; the announcement does not say that has happened. Readers with a public docket entry or court order showing whether the judge has acted on the proposal are invited to share it for review.
What the agencies allege
The FTC and Arizona, Colorado, Indiana and Utah allege that the companies advertised rental prices without mandatory fees, improperly withheld security deposits, failed to inspect homes before move-in, restricted negative reviews and failed to provide adequate customer service. The complaint alleges that hidden fees have cost consumers tens of millions of dollars since at least 2021.
The FTC describes a range of alleged charges, including monthly smart-home and utility-management fees not included in an advertised rent. It says the complaint alleges that most of the conduct occurred under prior management and that new management has moved to remedy the issues. Those claims are allegations in a civil complaint, not findings that a court has made.
What the proposed order would require
According to the FTC, the proposed settlement would require Progress to advertise a total monthly rental price including all mandatory recurring fees more prominently than other pricing information. It would also require a security-deposit refund process and itemized statements explaining amounts deducted from deposits or charged to renters' accounts no later than 30 days after move-out or within the time required by state law.
The FTC says the settlement would prohibit deductions for normal wear and tear, damage predating a renter's possession, and certain renovation or capital-improvement costs unrelated to damage caused by a renter. It would also prohibit standardized nondisparagement clauses and certain unfair customer-service practices.
Of the proposed payment, $48.5 million would go to the FTC for consumer redress and $1.25 million to Arizona, according to the agency. The announcement does not specify who will receive payments or how to apply. It says Progress manages more than 90,000 homes across 17 states; that is not a count of affected renters.