# The Opendoor FTC settlement: what happened and what we changed By Opendoor Editorial Team | 2026-05-26 This article addresses two legal matters regarding Opendoor. The first: a 2022 FTC settlement for $62 million, resolving claims that Opendoor's marketing misled home sellers between 2017 and 2019. The second: a securities class action involving claims about Opendoor’s pricing algorithm, which was resolved for $39 million. If you're a home seller doing research, the FTC matter is the one that concerns your transaction. Here's what it involved, what changed, and what the process looks like today. ### What the FTC alleged Between 2017 and 2019, Opendoor's marketing claimed sellers would receive "market value" and come out ahead financially compared to a traditional home sale. The FTC found those claims were misleading. According to the FTC, Opendoor "often offered sellers less money than market value and charged more than they said they would." The advertised comparisons did not adequately account for service fees and repair deductions that reduced what sellers actually received. Opendoor and the FTC announced a settlement in August 2022. Opendoor disagreed with the FTC's allegations, but decided to settle with the FTC in order to resolve the matter and focus on helping consumers buy, sell, and move with simplicity, certainty, and speed. The final order was issued in October 2022. The settlement amount: $62 million. In April 2024, those funds were distributed as direct refunds to 54,689 homeowners. ### What the settlement requires Opendoor to do Opendoor agreed to enter into a consent order resolving all aspects of the FTC's inquiry. Pursuant to the consent order, Opendoor did not admit any wrongdoing and is required to possess competent and reliable supporting data prior to making statements regarding the costs, savings, repair costs, or financial benefits of services related to assisting consumers selling homes. **Opendoor strives for transparency throughout the offer process. For example:** - **Service charge:** Shown as an exact figure before you accept any offer. - **Net proceeds:** Your estimated proceeds, incorporating the service charge and estimated closing costs, shown at the offer stage. - **Cancel-anytime right:** Stated explicitly throughout the process. You can cancel before closing, for any reason, for free. For detail on how repair credits work in practice, see [How Opendoor's home assessment and repair process works](https://www.opendoor.com/articles/how-opendoors-home-assessment-and-repair-process-works). At Opendoor, our goal is to make selling a home simple, certain and fast. We have made it a priority to help sellers understand our offers, fees and process so they can choose the home sale option that’s right for them. [Get your offer](#) ## The securities class action: investor claims (2020–2025) This case is separate from the FTC matter. It involved investors rather than home sellers. The securities class action, *In re Opendoor Technologies Inc. Sec. Litig.*, No. 2:22-CV-01717-MTL (U.S. District Court, District of Arizona), alleged that Opendoor made misleading statements about its AI pricing algorithm's ability to adapt to changing market conditions. Those statements were made in connection with Opendoor's 2020 de-SPAC merger and 2021 stock offering. The class period ran from December 21, 2020, through November 3, 2022. The case settled for $39 million, which was approved by the court in January 2026. This case involved claims under federal securities law by investors, addressing certain public statements about Opendoor's pricing technology, not the seller transaction experience. ## What the offer process looks like today Here is how the current Opendoor offer process works, from request to closing: 1. You request an offer. Opendoor generates it from comparable sales data, your home's characteristics, and current market conditions. 2. Your offer shows the purchase price, service charge (as an exact dollar amount), and estimated net proceeds, pending a home assessment, before you accept anything. 3. If you accept, Opendoor schedules a free home assessment to verify your home's condition. 4. If condition adjustments are needed, they are presented before you make any further decisions. See [How Opendoor's home assessment and repair process works](https://www.opendoor.com/articles/how-opendoors-home-assessment-and-repair-process-works) for full detail. 5. You can accept the adjusted offer, negotiate, or cancel free of charge. 6. Nothing is final until you sign closing documents. **See what Opendoor would offer for your home. It's free, with no obligation.**[Get an offer](https://www.opendoor.com/) [Get your offer](#) Looking to sell a home in [Pennsylvania](https://www.opendoor.com/sell/pennsylvania_other)? Opendoor makes selling simple in [El Paso](https://www.opendoor.com/sell/el_paso), [South Texas](https://www.opendoor.com/sell/south_texas), and [Nashville](https://www.opendoor.com/sell/nashville) — request a free, no-obligation cash offer. **Frequently asked questions** --- *Originally published at [https://www.opendoor.com/articles/opendoor-ftc-settlement](https://www.opendoor.com/articles/opendoor-ftc-settlement)*