The Federal Trade Commission is gearing up for a significant legal battle against Greystar Real Estate Partners, the nation's largest apartment landlord, according to an exclusive in The Wall Street Journal, which cited a person familiar with the matter as its source. Reportedly, the commission is preparing a civil lawsuit that alleges Greystar engaged in deceptive pricing practices and failed to properly disclose certain fees to prospective tenants when advertising rental units. These hidden charges are said to cover services such as pest control, trash collection, and tenant background checks.

While Greystar maintains it has been proactive in improving fee disclosures and promoting transparency, the company noted the lack of clear regulatory guidelines in the rental space. The potential lawsuit is part of a broader regulatory crackdown on big corporations under FTC Chair Lina Khan and President Biden's administration.

The FTC has been particularly focused on addressing hidden fees across various industries, including hotels, live event ticketing, and rental housing. In 2023, the commission proposed a rule banning hidden fees, which was finalized last month. However, the multifamily sector was notably absent from the final rule, a development that landlord trade groups initially viewed as a victory.