The Federal Trade Commission (FTC) recently announced that AppFolio, Inc, will pay $4.25 million as part of a settlement over allegations the firm failed to follow reasonable procedures to ensure the accuracy of its reports about potential tenants.
Property managers use AppFolio’s reports for tenant screening. Under the FCRA, companies that provide tenant screening background reports on consumers are required to follow reasonable procedures to ensure the “maximum possible accuracy” of those reports and are prohibited from reporting certain obsolete information.
The FTC alleges that AppFolio failed to implement procedures to adequately review the accuracy of the information it received from its vendor before including the information in background reports.