Opendoor Technologies Inc OPEN shares are trading lower Monday after the Federal Trade Commission took action against the company for misleading potential home sellers.
According to a FTC press release, action is being taken against Opendoor for "cheating" potential home sellers by "tricking them" into thinking they could make more money by selling to Opendoor instead of selling on the open market.
The FTC has alleged that Opendoor used misleading and deceptive information and that most people who sold to Opendoor made thousands of dollars less than they would have made selling their homes using a traditional process.
The Commission has proposed an administrative order that would require Opendoor to pay $62 million and stop its deceptive tactics. After 30 days, the FTC will decide whether to make the proposed consent order final.
"Opendoor promised to revolutionize the real estate market but built its business using old-fashioned deception about how much consumers could earn from selling their homes on the platform," said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. "There is nothing innovative about cheating consumers."
Opendoor operates a digital platform for residential real estate. The company is set to announce its second-quarter financial results after the market closes on Aug. 4.
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OPEN Price Action: Opendoor has traded between $15.24 and $4.30 over a 52-week period.
The stock was down 1.1% at $4.85 at press time, according to data from Benzinga Pro.
Photo: Nenad Maric from Pixabay.
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