Judge Says DC Consumer Protection Law May Hold Tenant Screening Company Liable for Inaccurate and Biased Report Data

On November 21, the case brought by the National Association of Consumer Advocates (NACA)—represented by EPIC and Richman Law and Policy—against the tenant screening company, RentGrow, for allegedly providing reports that contain serious errors and biases, survived RentGrow’s motion to dismiss in DC Superior Court (NACA v. RentGrow). This means that NACA’s claims brought under DC’s unfair or deceptive acts or practices (UDAP) statute, the DC Consumer Protection Procedures Act (DC CPPA), can move forward to discovery and eventually trial.

This is an important victory under consumer protection law that is not federal law, opening the door for many D.C. consumers and consumer advocates to bring lawsuits challenging unfair and deceptive practices. 

Specifically, the court found in favor of plaintiff NACA on three important issues. First, the court found that NACA has standing to sue under the DC CPPA as a public interest organization, allowing NACA to bring the suit on behalf of consumers without needing to name a specific plaintiff harmed by the challenged practices. Second, the court found that RentGrow is covered as a “merchant” under the DC CPPA, even if RentGrow does not directly sell its services to consumers. RentGrow’s provision of rental screening services to D.C. landlords, which helps determine outcomes for rental applications, is still subject to DC’s UDAP law. Lastly, the court found that Fair Credit and Reporting Act (FCRA), the federal law enacted to promote accuracy and fairness in credit reports, does not preempt the DC CPPA claims regarding harms caused by RentGrow’s tenant screening reports. This order is a major step forward towards stronger legal protections for D.C. consumers.

The suit was filed in October 3, 2024, for unfair and deceptive practices tied to RentGrow’s automated tenant screening reports. The DC Superior Court granted the motion to dismiss Yardi, the parent company of RentGrow, as a defendant on jurisdictional grounds.