KB Home to Pay $2 Million Penalty for Alleged Violations of FTC Order - New Home Warranties Repair Problems

KB Home to Pay $2 Million Penalty for Alleged Violations of FTC Order - New Home Warranties Repair Problems
Under the terms of a stipulation and modified consent decree approved by the Federal Trade Commission and submitted in federal court by the U.S. Department of Justice (DOJ), KB Home, a California-based homebuilder formerly known as Kaufman and Broad, Inc., will pay a $2 million civil penalty to settle charges that it violated the terms of a 1979 consent order with the Commission. The modified consent decree also bars KB Home from violating the terms of the original order in the future, and requires the company to modify existing home repair warranties to comply with the consent order and extend for one year certain homeowners’ two-year warranty coverage for major home components. The FTC also has issued a new publication for consumers to help them understand the issue of home warranties.