Penalty Amount
$4,250,000
AppFolio, Inc., a tenant background report provider, settled with the FTC for $4.25 million over allegations it violated the Fair Credit Reporting Act by failing to implement reasonable procedures to ensure the accuracy of its screening reports and by including eviction and non-conviction criminal records older than seven years. The settlement prohibits including old records and requires maintaining accuracy procedures.
AppFolio must pay $4.25 million, is prohibited from including non-conviction criminal or eviction records older than seven years in its reports, and must maintain reasonable procedures to ensure the maximum possible accuracy of its background reports.
In-house legal teams should review all vendor and customer agreements where the company either provides or consumes tenant/background screening reports. Specifically examine clauses governing data accuracy, FCRA compliance certifications, data sourcing from third parties, and restrictions on the age of reported records (e.g., evictions, non-convictions). Agreements with property management clients (as vendors) may require amendments to mandate adherence to FCRA's 'reasonable procedures' standard and prohibit inclusion of records older than seven years. Contracts with third-party data providers should be scrutinized for warranties of accuracy and compliance. Consider adding audit rights, indemnification for FCRA violations, and explicit requirements for maintaining up-to-date accuracy procedures.
Entity
AppFolio, Inc.
Also known as: AppFolio
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/12/tenant-background-report-provider-settles-ftc-allegations-it-failed-follow-accuracy-requirements
ecf 1 us v appfolio complaint
https://www.ftc.gov/system/files/documents/cases/ecf_1_-_us_v_appfolio_complaint.pdf
ecf 2 us v appfolio stipulated order
https://www.ftc.gov/system/files/documents/cases/ecf_2_-_us_v_appfolio_stipulated_order.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"AppFolio, Inc."
"$4.25 million"
"Fair Credit Reporting Act (FCRA)"
"failed to implement reasonable procedures to ensure that criminal and eviction records it received from a third party vendor were accurate before including such information in its tenant screening reports."
"including eviction or non-conviction criminal records more than seven years old in its reports."
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.