Penalty Amount
$2,250,000
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
RentGrow must pay a $2.25 million monetary penalty. It is prohibited from failing to maintain reasonable procedures to ensure maximum possible accuracy of consumer reports, including preventing duplicate records for the same criminal or eviction proceedings. It is also prohibited from misrepresenting that it provides updated screening reports to landlords after a successful consumer dispute.
In-house legal teams should review vendor agreements with tenant screening or background check providers to ensure they include FCRA compliance obligations, particularly regarding data accuracy, source disclosure, and dispute handling. Key clauses to examine include those related to data accuracy procedures (e.g., preventing duplicate records), disclosure of data sources to consumers, and the process for handling consumer disputes. Additionally, contracts with property managers or landlords should clarify responsibilities for notifying consumers about dispute outcomes and updating reports. Any agreements involving data matching or third-party data sources (like LexisNexis) should require the vendor to disclose all sources used and ensure reasonable procedures are in place to avoid inaccuracies.
Entity
RentGrow Inc.
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/07/rentgrow-pay-225-million-settle-ftc-allegations-company-violated-fair-credit-reporting-act-ftc-act
RentGrow Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/RentGrow-Complaint.pdf
RentGrow OrderMtn
https://www.ftc.gov/system/files/ftc_gov/pdf/RentGrow-OrderMtn.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"RentGrow Inc."
"$2.25 million"
"Fair Credit Reporting Act (FCRA)"
"FTC Act"
"failing to use reasonable procedures to ensure the accuracy of its reports"
"failing to disclose the sources of information used to compile a background screening report"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.
$2.3M
The FTC alleged that Amazon knowingly violated the Fair Credit Reporting Act (FCRA) by refusing to provide transaction records to identity theft victims whose personal information was used to commit fraud. Amazon agreed to pay a $2.25 million civil penalty and is required to comply with FCRA Section 609(e), provide notice to consumers, and contact victims who previously requested records since April 2024.