The FTC alleged that RentGrow failed to employ reasonable procedures to ensure accuracy in consumer reports used by landlords to evaluate rental applicants. Duplicate entries in those reports could unfairly damage tenants' rental prospects. The company also did not adequately inform consumers where its data originated. RentGrow has agreed to resolve the allegations by March 2026, waiving service of the complaint.
Attorneys representing tenants should monitor this action as part of a broader enforcement trend. The FTC is actively targeting tenant screening firms for inaccurate eviction data and erroneous OFAC matches that block applicants from housing. Unlike prior class litigation that stumbled on standing issues around reputational harm, the FTC's administrative approach sidesteps those obstacles by focusing directly on regulatory compliance and consumer protection standards. For landlords and property managers, the settlement signals tightening compliance expectations around data sourcing and accuracy verification in tenant screening.