FTC Proposes $2.25 Million RentGrow Settlement Over Tenant-Screening Reports
The Federal Trade Commission announced a proposed $2.25 million settlement with tenant-screening company RentGrow on July 9, 2026, after alleging that the company’s reports included duplicate criminal and eviction records, did not fully identify data sources and mishandled consumer disputes.
The proposed settlement is not yet a final court judgment. The FTC said the case remains pending, and the proposed stipulated order would take effect only after approval and signature by a judge in the U.S. District Court for the District of Columbia.
The Department of Justice filed the complaint and proposed order in that court after the FTC referred the matter. The case is listed as United States v. RentGrow Inc., Civil Action No. 1:26-cv-02415.
What the FTC alleged
According to the complaint, RentGrow failed to maintain reasonable procedures designed to ensure the maximum possible accuracy of information in its consumer reports, as required under the Fair Credit Reporting Act.
RentGrow is a Massachusetts-based consumer-reporting agency whose tenant-screening reports are sold to landlords and property managers. The FTC alleged that duplicate entries could make a single criminal or eviction proceeding appear multiple times in a report. A repeated entry can give the appearance of several separate proceedings rather than one record, potentially affecting how a housing application is evaluated.
The complaint also alleged that RentGrow did not disclose all of the data sources used in some reports when consumers requested that information. The FTC specifically identified LexisNexis Accurint among the sources that it said were not disclosed in those circumstances.
Federal law gives consumers rights to obtain information about their consumer reports and to dispute information they believe is inaccurate. The FTC alleged that RentGrow improperly labeled some disputes as invalid and did not investigate them adequately.
The agency further alleged that RentGrow made misleading statements about what would happen after a successful dispute. Specifically, the complaint said the company misled consumers about whether it would notify landlords that a report had been updated.
What the proposed order would do
If approved, the proposed order would prohibit specified failures involving the accuracy of tenant-screening information, disclosure of data sources and the handling of consumer disputes.
It would also bar representations about updated reports that could mislead consumers, including statements concerning whether landlords would be notified after information was corrected. The order addresses the practices described in the FTC’s complaint; it does not establish that every RentGrow report was inaccurate.
The proposed monetary penalty is $2.25 million. The FTC authorized the action by a 2-0 vote before the complaint and proposed order were filed in federal court.
Why the case matters to renters
Tenant-screening reports can influence whether an applicant receives a rental home and whether a landlord imposes less favorable rental terms. The reports may draw on criminal, eviction and other records that are matched to an applicant’s identity.
That makes duplicate records, incomplete source information and weak dispute procedures significant beyond the company named in this case. An applicant who cannot determine where information came from may have difficulty challenging it. An applicant whose dispute is dismissed without an adequate investigation may also face delays or an adverse housing decision while inaccurate information remains in circulation.
The FTC’s allegations concern the operation of RentGrow’s reporting and dispute systems, not a finding that every report or every record was wrong. The court’s review will determine whether the proposed settlement becomes enforceable.
For now, the next known step is consideration of the complaint and proposed stipulated order by the District Court for the District of Columbia. The FTC case listing identifies the matter as pending.
Sources
- RentGrow to Pay $2.25 Million to Settle FTC Allegations, Federal Trade Commission
- RentGrow, Inc., U.S. v., Federal Trade Commission
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