Minnesota Attorney General Keith Ellison at a press conference on Feb. 26, 2024. Photo by Madison McVan/Minnesota Reformer.
Edina Realty will pay $3.5 million to clients who purchased a home warranty pushed by the brokerage. The payments will come as part of a settlement with the attorney general’s office.
Home Security of America, a home warranty company, paid Edina Realty to advertise its products. Edina Realty did not disclose to its clients that it was paid to promote Home Security of America, causing confusion among clients and leading some to purchase home warranties that they otherwise would not have purchased, the attorney general’s office alleges.
“After a careful investigation, my office is alleging that Edina Realty violated that duty by secretly accepting substantial payments from Home Security of America to push their home warranty contracts on unsuspecting clients,” Attorney General Keith Ellison said in a press release.
Edina Realty will pay the $3.5 million to Ellison’s office, which will distribute the funds to Edina Realty clients who purchased a Home Security of America warranty but did not use the warranty, or who had a claim denied.
The settlement bars Edina Realty from entering into similar contracts with other companies for the next four years.