DENVER — The Federal Trade Commission (FTC) and Colorado Attorney General Phil Weiser filed a lawsuit against Greystar on Thursday, accusing the corporate landlord of using deceptive advertising to lure tenants and jacking up the rental price through undisclosed "junk fees."
In his release announcing the lawsuit, Weiser described Greystar as one of the largest rental landlords in Colorado. The company manages roughly 45,000 units in the state, according to the Colorado Attorney General's Office.
An investigation by the FTC's Bureau of Consumer Protection found the alleged deceptive pricing started in 2019.
- Read the lawsuit below
According to Weiser, renters would agree to a rental price but then be hit with undisclosed "junk fees" for things such as valet trash service, package concierge service and utility administration fees. The AG alleges that prospective tenants would not know about the fees until they received their lease, which usually happens after paying an application fee. At that time, the prospective tenants had limited options for recourse, according to Weiser.
Since these fees are not included in the advertised rental price, Weiser claims Greystar is misleading prospective tenants about the actual cost to rent the apartment, violating the Colorado Consumer Protection Act.
“Because of Greystar’s deceptive advertising and hidden fees, tenants are on the hook in their lease for hundreds, if not thousands, of dollars more than they anticipated that their apartment would cost. Through their actions, Greystar is thwarting apartment hunters from comparison shopping and choosing a home that fits within their budget,” said Weiser in a statement. “To the extent that other corporate landlords are not advertising their all-in pricing and are engaging in similar tactics, they are on notice that such conduct is illegal and will not be tolerated in Colorado.”
Weiser is seeking a permanent injunction to stop these alleged violations, monetary relief for consumers and civil penalties for the state.
Denver7 Investigates
Colorado lawmakers propose crackdown on 'junk fees' in leases
Earlier this month, Denver7 Investigates dug into junk fees and what lawmakers are doing to address such practices.
State Rep. Emily Sirota (D) Denver is co-sponsoring a bill to regulate junk fees within leases.
"What we're requiring is upfront, transparent pricing. It's just disclosure," said Sirota.
Sirota said the bill would have tenant-specific protections, including banning fees beyond actual utility costs and banning administrative fees not related to rent.
In a statement to Denver7 Investigates, the Colorado Apartment Association said it was "deeply concerned about any legislation that would seek to enact additional regulations and costs on Colorado's housing providers without getting input from those who will be affected by it."
Greystar already faces an antitrust lawsuit from the state of Colorado. The company is one of six large landlords accused of conspiring to raise and keep rent high.
Denver7 is committed to making a difference in our community by standing up for what's right, listening, lending a helping hand and following through on promises. See that work in action, in the videos above.