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AppFolio FTC Settlement Statement

December 8, 2020

AppFolio has reached a settlement with the Federal Trade Commission that resolves all purported claims and allegations stemming from the previously disclosed investigation of AppFolio’s tenant background screening services business. AppFolio did not admit any wrongdoing in the settlement but nevertheless agreed to pay $4.25 million to avoid protracted litigation and potential distraction from its strategic objectives.

The government's allegations focused on AppFolio's matching and filtering practices and processes, which are designed to provide maximum possible accuracy in all tenant background screening reports furnished by AppFolio, from January 2016 to approximately April 2019, when AppFolio changed its primary public records provider and further evolved its tenant screening-related business practices. “While we are disappointed with the outcome of the FTC’s investigation into our tenant background screening services business,” said Jason Randall, AppFolio President and Chief Executive Officer, “we remain committed — as we’ve always been — to providing accurate and timely background reports to our property manager customers.”

Additional questions can be directed to Kerry Allen, VP Communications (pr@appfolio.com).

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