Opendoor Gets Fined $62m, Partners up with Zillow

August 8, 2022
Share this Post: 

Opendoor—an iBuying specialist based in the US—has been fined by $62 million by the FTC for misleading customers and posted disappointing results in Q2.

The company will also partner up with former iBuying rival Zillow in a long-term deal.

Opendoor was fined $62m by the Federal Trade Commission this week for "misleading" customers by saying that they could make more money by selling their property with Opendoor than via traditional methods.

The FTC alleged that Opendoor's marketing implied consumers would make more by selling their property to the company because all fees were bundled together. However, consumers often paid more, with Opendoor paying under market value for those properties.

Opendoor said it disagreed with the FTC's allegations, but agreed to pay the fine as part of a settlement deal, with fines going back to customers who were misled by the company. Opendoor will also stop making “deceptive” claims in its advertising.

The fine coincides with poor performance in Q2 after a record-breaking Q1 (revenue dropped from $5.2bn to $4.2bn). Opendoor posted significant losses of $54m. However, share prices soon jumped up when Opendoor announced a "multi-year" partnership with Zillow.

Zillow will feed its users to Opendoor’s iBuying platform, allowing Zillow sellers to request an offer from Opendoor to purchase their home either independently of or in addition to other Zillow offerings. The terms of the deal remain undisclosed.

The companies had been rivals in the iBuying sector, but Zillow's very public departure from the market late last year means they can now have a symbiotic relationship: Opendoor gets access to Zillow's massive audience, while Zillow gets to keep an interest in the iBuying sector.


August 8, 2022
Harvey is an experienced property journalist and copywriter. He has written about the property industry since 2015, starting at The Property Franchise Group in the UK, before moving to Spain to work for Spotahome. He has blogged for the private rented sector, ghostwritten for UK property experts and written case studies for franchise owners around the UK. Harvey joined Online Marketplaces as a News Editor in 2022.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Investment And Funding Roundup 19 July 2024
Investment and Funding Roundup: Lhoopa, StudentTenant,

We've spotted three significant funding and investment movements this week, from an $80 million round in South Asia and two...

Read More
Product Roundup 19 July 2024
Product Roundup: SeLoger, SMG, OnTheMarket, Zoopla, BCG, ViewIT

We've spotted six interesting stories around the world in this week's Product Roundup, including some healthy competition in the UK....

Read More
Costar And
Move Inc. Files Injunction Request Against Unimpressed CoStar

Move Inc. has filed a motion for a preliminary injunction against CoStar and its former employee James Kaminsky from "any...

Read More
Carousell Losses Shrank 40% in 2023 as Recommerce Business Grew

The Southeast Asian e-commerce and classifieds operator Carousell saw revenue rise by 40.5% year-on-year in 2023 according to newly released...

Read More

Editor's Pick