Opendoor Labs to pay $62 million to settle FTC allegations that it deceived home sellers

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Shares of Opendoor Technologies Inc. OPEN, -2.44% fell 2.7% in afternoon trading Monday, after the U.S. Federal Trade Commission said subsidiary online home buying company Opendoor Labs Inc. will have to pay $62 million for deceiving potential home sellers. The FTC said it took the action because of its allegations that Opendoor “pitched potential sellers using misleading and deceptive information, and in reality, most people who sold to Opendoor made thousands of dollars less” than if they sold their homes using the traditional process. On top of the $62 million payment, the FTC’s order prohibits Opendoor from making “deceptive, false and unsubstantiated claims” to consumers about how much money they will receiver, and requires Opendoor to provide “competent and reliable evidence” to support any claims made about costs, savings or benefits from using Opendoor. The stock has plunged 67.3% year to date, amid increasing signs of a housing market slowdown, while the S&P 500 SPX, -0.28% has lost 13.7%.

This article was originally published by Marketwatch.com. Read the original article here.

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